Deal snapshot
| Location | Park Circle, North Charleston, SC |
| Property type | 1954 3/2 bungalow |
| Loan type | Fix-and-flip hard money |
| Loan amount | $282,000 all-in (90% LTC) |
| Close time | 8 business days |
Investor challenge
The sponsor needed 8-day close on a 1954 Park Circle bungalow with galvanized plumbing and an estate timeline. Banks declined for condition and speed; ARV had to be constrained to Park Circle comps — not peninsula premiums — while flood diligence had to be documented before permanent debt or resale.
Jaken Finance Group’s solution
Jaken Finance Group funded 90% LTC at 10.25% IO with four milestone draws and a 13-month term. Flood zone verification (Zone X), wind/hail insurance quotes, and sewer lateral contingency were modeled in carry before term sheet.
Outcome
Property resold at $322,500 in 38 DOM after $64,000 rehab — ~$34,000 net to sponsor after carry and 7% sale friction.
Charleston hub: hard money lenders Charleston · Charleston flood zone guide
Deal summary
| Stage | Detail |
|---|---|
| Acquisition | $218,000 |
| Rehab | $64,000 |
| Resale | $322,500 at 38 DOM |
| Net spread | ~$34,000 |
Spoke: hard money loans Park Circle
Rehab scope highlights
| Line | Budget | Actual |
|---|---|---|
| Kitchen + baths | $22,000 | $23,400 |
| HVAC + electrical panel | $14,500 | $14,500 |
| Sewer lateral (unplanned) | $4,000 contingency | $4,200 |
Why flood diligence and comp discipline saved the margin
This flip profited on two decisions made before the offer. First, flood-zone verification: the sponsor confirmed Zone X (outside the FEMA special flood hazard area) and still pulled an elevation and flood quote, so there was no surprise insurance line and no SFHA financing friction — exactly the diligence banks wouldn’t underwrite on an 8-day timeline. Second, ARV restraint: comps were held to Park Circle sales, not peninsula premiums a few miles away. Anchoring to the right comp set is what kept the $322,500 resale realistic and the 38-day sale fast.
The deal also budgeted for the unknown. A sewer-lateral contingency ($4,000 planned, $4,200 actual) on a 1954 bungalow meant the galvanized-plumbing surprise didn’t eat the spread. Net result: ~$34,000 after 10.25% carry and 7% selling costs.
Takeaway in the Lowcountry: verify flood and insurance before the LOI, and comp to the neighborhood, not the metro — both are where Charleston flip margins quietly disappear.
Deal timeline
| Week | Milestone |
|---|---|
| 1 | Contract — Park Circle walkable comp set confirmed |
| 2 | Hard money close — 85% LTC + rehab holdback |
| 3–10 | Kitchen/bath/systems draws per milestone inspection |
| 11 | Staging and list — O-O buyer pool targeted |
| 12–14 | Sale at contract price — payoff and fee settlement |
Lowcountry diligence notes
- Flood zone verified — X zone avoided AE insurance drag
- Charleston County permit turnaround modeled at 3–4 weeks
- Comp radius kept within Park Circle — no Daniel Island premium bleed
- Hard money term sized to 14-week realistic exit, not optimistic 8-week
Sponsor takeaway
Park Circle rewards walkability narrative in ARV — but only when comps stay hyper-local. Price DOM + carry into IO budget before max leverage. Hub: hard money lenders Charleston.
Full profit stack
| Line | Amount |
|---|---|
| Acquisition | $218,000 |
| Rehab (actual) | $64,000 |
| Sewer lateral overrun | $200 |
| All-in | $282,200 |
| Resale | $322,500 |
| Gross spread | $40,300 |
| IO carry (7 mo @ 10.25%) | −$16,800 |
| Sale costs (7%) | −$22,575 |
| Points / fees | −$4,900 |
| Net to sponsor | ~$34,000 |
Park Circle market context
Park Circle is North Charleston’s walkable restaurant and arts district — buyers pay for block-level walk score, not generic North Charleston median. 2026 distressed basis runs $200K–$240K on 1950s bungalows needing $55K–$75K systems-heavy rehabs. Zone X flood designation avoids SFHA insurance requirement but sponsors should still document elevation — buyers’ lenders will ask.
What would have killed this deal
- Daniel Island comps in ARV — unsupported at resale
- Skipping sewer lateral contingency on 1954 galvanized stock
- 8-week IO term on a systems-heavy scope — 14-week realistic
- AE flood zone acquisition — insurance drag erases Lowcountry flip margin
Draw and permit timeline
| Week | Milestone |
|---|---|
| 1–2 | Close + demo prep — galvanized scope confirmed |
| 3–4 | Kitchen/bath rough — Draw 1 released |
| 5–7 | HVAC + panel — Draw 2 after inspection |
| 8–9 | Sewer lateral repair — contingency deployed |
| 10 | Staging + photography |
| 11–14 | Listed — 38 DOM to contract |
Charleston County permits ran 3 weeks on this file — sponsor sized IO term to 14 weeks minimum, not optimistic 8-week flip math. Systems-first draw sequencing kept the lender comfortable releasing holdback while galvanized plumbing was still open.
North Charleston Park Circle Funded Flip Case Study: replay checklist
Case studies illustrate one closed file — not a guarantee of future terms. Before you mirror the structure:
| Step | Action |
|---|---|
| Comps | Three solds within 0.5 mi on matching bed/bath and product type |
| Carry | Model 8.99%–13.5% IO bridge and 5.75%–10.5% DSCR exit with investor tax and insurance |
| Entity | LLC vesting, operating agreement, and EIN aligned before appraisal |
| Exit | Written takeout path — DSCR refi, sale, or wholesale — before increasing rehab scope |
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Related
- Best hard money lenders Charleston 2026
- Fix and flip South Carolina
- Blog: Charleston historic rehab timeline
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