Fayetteville NC 100% Fix and Flip Financing Case Study

Investor challenge

A first-time Fayetteville sponsor found a Fort Bragg-adjacent ranch with strong ARV lift but only $3,000 liquid and a 600 FICO. Conventional and most hard money shops required 20%–25% cash in — killing the spread before rehab started.

Jaken Finance Group’s solution

Jaken Finance Group structured 100% LTC hard money at 11.25% interest-only on a file where ARV, scope, and resale liquidity supported full leverage. Proof of funds on Day 2 beat a conventional buyer; file closed on Day 8 with LLC vesting and milestone draws tied to scope.

Outcome

After $46,000 rehab and 4.5-month hold, the property sold at $248,000 ARV for ~$31,200 net profit. The sponsor recycled capital into a second Cumberland County acquisition.

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Acquisition

Property: 3/2 ranch — dated kitchen/baths, functional mechanicals
Purchase: $132,000 · LLC vesting
Close: Day 8 · 100% LTC at 11.25% IO
Cash in: ~$3,000 (EMD + inspection)

Rehab and carry

Scope	Cost
Kitchen + baths	$18,500
Flooring + paint	$9,200
Exterior + landscaping	$8,800
Mechanical buffer	$9,500
Total rehab	$46,000

Hold: 4.5 months · IO carry ~$7,500 · Insurance/utilities ~$1,600

Exit

Line item	Amount
ARV sale	$248,000
Sale costs (8%)	−$19,840
Loan payoff	−$178,000
Cash in + carry	−$12,100
Net profit	~$31,200

How 100% LTC was possible at a 600 FICO

This file looks aggressive until you read it the way an asset-based underwriter does. The decision rested on three numbers, not the credit score: a $132K purchase well under the $248K ARV, a defined $46K scope, and a Fort Bragg-adjacent submarket with fast resale liquidity. With a roughly 72% all-in-to-ARV ratio, the collateral carried the risk — so the lender could cover 100% of purchase and rehab while the sponsor brought only earnest money and the inspection fee.

The score mattered for pricing (11.25% IO), not approval. What protected everyone was the spread and the exit: even with full leverage, 8% sale costs, and 4.5 months of carry, the deal cleared ~$31,200.

Takeaway: 100% LTC is the exception, not the rule, and it only appears when the basis-to-ARV gap is wide enough to absorb full leverage plus carry. Lead with the deal’s math — a strong asset and a credible exit beat a thin file with a high score.

Deal timeline

Week	Milestone
Week 0	Sponsor submits contract on Fort Bragg-adjacent ranch — competing conventional buyer at 30-day close
Day 2	Jaken Finance Group issues proof of funds; seller accepts Jaken Finance Group-backed offer at list
Day 8	Hard money close — LLC vesting, 100% LTC at 11.25% IO
Weeks 2–14	Four milestone draws — kitchen/baths, flooring, exterior, mechanical buffer
Week 16	Property listed at $249,900; first showing weekend
Week 18	Accepted offer at $248,000 — buyer VA financing
Week 20	Sale closed; loan payoff; ~$31,200 net to sponsor LLC

Total calendar from acquisition to sale: 4.5 months — within the 6-month hard money term without extension fees.

Cumberland County market context (2026)

Fayetteville is not a generic Carolina flip market. Fort Bragg and Pope Army Airfield drive steady demand for 3/2 ranch product in the $220K–$260K resale band — the exact exit lane this sponsor targeted. Cumberland County median home prices ran $215K–$235K in early 2026, but move-in-ready stock in the 28303/28304 corridors trades at a $15K–$25K premium over dated inventory.

Insurance on inland Cumberland SFRs runs $1,400–$1,900/yr — materially lower than coastal NC markets where flood and wind tiers compress flip margins. Property taxes on this file assessed at ~$1,850/yr post-sale — sponsor modeled $155/mo at underwriting, not the seller’s stale bill.

The listing sat in a subdivision with no HOA — a requirement for many first-time flip sponsors who cannot absorb monthly assessment drag on thin spreads. Comparable sales within 0.75 miles supported $245K–$252K ARV on renovated 3/2 ranches with updated kitchens; the sponsor’s $248K exit landed mid-band, not at the optimistic ceiling.

Full economics — sponsor return on cash

Input	Amount
Cash in (EMD + inspection + carry float)	~$12,100
Net profit after sale	~$31,200
Hold period	4.5 months
Cash-on-cash (annualized)	~69%
ROI on cash deployed	~258%

The sponsor did not measure success on gross spread alone — $116K ARV lift ($248K − $132K) would look thin after rehab if leverage were not structured correctly. 100% LTC meant the $46K rehab never came out of the sponsor’s pocket; IO carry on the full $178K balance was the only ongoing cash drag beyond utilities and insurance.

Points and fees on the hard money leg (2 points on $178K ≈ $3,560) rolled into the loan at close — the sponsor’s $3,000 liquid never had to cover origination. That structure is why asset-based underwriting mattered more than FICO: the collateral carried the fee load.

Operator lessons

Comp on ARV before you comp on rate. The sponsor lost 0.25% on rate (11.25% vs a hypothetical 11.0% at 680+ FICO) but gained 100% LTC — a trade that added ~$33K of deployable capital vs an 80% LTC file requiring ~$35K down.

Draw discipline on a first deal. Kitchen and bath scope ran $18,500 against a $19,000 budget line — the $9,500 mechanical buffer absorbed a $1,200 HVAC capacitor replacement without a change order. First-time sponsors who zero out contingency lines stall at Draw 3.

Exit buyer pool. The buyer was active-duty military using VA financing — common in this submarket. Sponsor priced the list at $249,900 knowing VA appraisals in Cumberland County typically come within 2% of contract on renovated ranch product; accepting $248K on Day 5 of marketing avoided a 30-day DOM extension that would have cost ~$1,875 in additional IO carry.

Second deal recycling. Net proceeds funded earnest money on a Spring Lake acquisition ($118K purchase, 85% LTC) within 11 days of Fayetteville sale close — repeat-borrower pricing on the second file came in at 10.75% IO with 87% LTC. See fix and flip loans Fayetteville NC for corridor parameters.

Flip vs BRRRR rejected at LOI

Sponsor modeled BRRRR hold at $1,450/mo market rent — DSCR ~0.94 at 75% LTV on $248K value. Fayetteville SFR cash-flow math in 2026 favors retail exit on sub-$250K assets unless the basis is $100K+ below market. The flip path cleared $31K net; the hold path would have extracted ~$8K at refi with negative cash flow during lease-up. See how a DSCR loan works for ratio gates on military-market rentals.

Next steps

Model your Fayetteville spread: Fix and flip calculator · Pre-qualify · (833) 264-7776