Was this Park Circle property in a FEMA flood zone?

Zone X — no SFHA flood insurance required. Sponsor still ordered elevation and flood quote before close.

What leverage did the flip receive?

90% LTC on acquisition with 100% rehab in four draws — experienced sponsor with three prior Charleston exits.

What was net profit after carry?

Approximately $34,000 after 10.25% IO carry, 7% sale costs, and $4,200 contingency spend on sewer lateral.

North Charleston Park Circle Funded Flip Case Study

Item: Jaken Finance Group
Rating: 5
Author: Verified Borrower

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

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.