Major Rehab Financing in Washington DC Explained
Major rehab financing in Washington DC — scope, hard money bridge terms, and what investors should document on large urban renovation projects.
Want the full breakdown with underwriting details, FAQs, and next steps? Read DC Rowhouse Rehab Financing: Draws, Carry, and Exit.
Video transcript
Lightly edited for clarity.
Mr. MJ, tell me how you do your thing.
It was a $980,000 acquisition. My ARV on it was 2.25 million, and roughly, we'll call it a $400,000 construction budget. So the gross profit, not including closing costs — I mean, it was a healthy, healthy, healthy spread.
Go ahead and tell them — it was almost a million dollar spread. Almost a million dollar spread. And it kept increasing. Keep in mind, you can do the math: 980 plus 400,000 is 1.3. It was a net million, almost. Yeah, and I'm at, you know, 2.25 million. So yeah, I mean, it was a big spread.
Now, what's interesting is there was an appraisal done right before we went on the market for this property. So there was a refinance done. Correct — two. Well, there was multiple refinances. Yeah. But the last refinance that was done, that lender ordered an appraisal. And the property appraised at 2.38 million.