Touchstone is providing both debt ($330,000) and gap/equity funding ($20,000) to one of our repeat JV partners for a fix and flip of an antique Cape-style home. The property is being subdivided, and the Sponsor will renovate and sell the existing home with our financing, which will be secured by a first mortgage on the existing home lot and a second mortgage on the new construction lot, for which he already has a customer.
Scituate, MA is a seaside community, about 25 miles southeast of Boston. Bordered by Hingham, Cohasset and Norwell, many buyers are downsizing from family homes in those more expensive towns. The renovated home should sell quickly at <$250psf. In the past 6 months, 46 homes have sold between $397,500 and $500,000, with average DTO of 37.4, DOM of 57.0 and $287psf.
The sponsor is a repeat borrower and JV partner of Touchstone. He is a highly experienced builder on the South Shore with a track record of success with both spec home building and building for customers.