Case Study: Fix and Flip Loan in Biscayne Park, FL

About the Deal

A seasoned investor with more than 20 completed flips acquired a single-family property in Biscayne Park, Florida, a small municipality in Miami-Dade County near North Miami and the Biscayne Bay corridor.

The investor was expanding into South Florida with his largest project to date: a $930,000 purchase paired with a $474,250 heavy rehab. The scope included structural expansion to increase livable square footage, so the deal needed a lender that could finance both the acquisition and the full renovation budget under one loan.

Ridge Street Capital provided a fix-and-flip loan with the rehab budget held as a funded holdback. The project was financed through Ridge Street’s Florida hard money lending program and closed in 8 days.

What Made It Special

The full rehab budget was financed through the loan. The $474,250 renovation budget was structured as a funded holdback, so the borrower did not need to bring separate construction capital upfront. Ridge Street Capital advanced $781,200 at closing and held the full rehab budget for controlled disbursement as work was completed. The borrower brought approximately $193,000 to close on a $930,000 acquisition, while the construction capital came from the loan.

The scope included square footage expansion. This was not a light cosmetic rehab. The project included structural changes that added livable square footage, which required the ARV to be supported by the expanded footprint, not just improved finishes. Ridge Street Capital underwrote the project to a $1,795,000 ARV based on the completed scope.

The deal showed strong projected return on capital. With approximately $193,000 in cash to close, the projected net profit at a 12-month timeline was $153,040, or a 79.3% return on capital. At a 6-month timeline, projected profit increased to $220,829. The 69.94% loan-to-ARV also created a meaningful equity cushion if the final sale price came in below the projected ARV.

The Result

Ridge Street Capital financed a $1.4 million total fix-and-flip project in Biscayne Park, including the $474,250 renovation budget, and closed the loan in 8 days from application to funding.

• Loan amount: $1,255,450, including purchase advance and rehab holdback
• Rate: 10.75%
• Loan term: 18 months
• Loan-to-ARV: 69.94%
• ARV: $1,795,000
• Cash to close: Approximately $193,000
• Projected profit, 12 months: $153,040
• Projected ROI on capital, 12 months: 79.3%
• Closed: 8 days

More About Ridge Street Capital

Ridge Street Capital provides fix-and-flip loans, DSCR rental loans, and ground-up construction financing to real estate investors across 36 states. Every deal is reviewed by a team focused exclusively on investment properties, so the underwriting questions are tied to what makes the project work.

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