An experienced real estate investor found a distressed, vacant single-family historic rowhouse on North Collington Avenue in East Baltimore, just blocks from Patterson Park. The property had sat neglected for years and required a complete gut rehabilitation, including structural masonry repairs, a new roof, upgraded plumbing and electrical systems, and modern finishes to match surrounding renovated rowhouses. The seller requested a cash offer with a guaranteed five-day closing.
The Challenge
Conventional mortgage lenders and regional banks rejected the deal during initial intake due to the building's severe interior damage and lack of working mechanical systems. Traditional bank underwriting would have required a four-week appraisal and inspection timeline, which meant the investor would lose the property to a competing cash buyer. The borrower needed a direct private lender who could analyze the after-repair potential of the asset and fund quickly.
The Henry Solution
Hard Money Henry evaluated the rowhouse using local Baltimore comparable sales data and the borrower's itemized contractor scope of work. We verified that the property title was clear of unredeemed ground rent issues, issued a formal commitment letter within 24 hours, and funded a $254,855 fix and flip loan. The financing covered 85% of the purchase price ($161,500) and 100% of the $93,355 renovation budget. By evaluating the real estate in-house, we eliminated third-party appraisal bottlenecks and closed the transaction in five business days. Construction funds were deposited in escrow and released through an expedited milestone draw schedule.
The Financial Outcome
The investor completed the full restoration in 90 days, transforming the distressed property into a premium three-bedroom rowhouse. The completed home was listed and went under contract in less than two weeks, selling for $388,000. After covering holding costs, interest, and closing fees, the borrower realized a net profit exceeding $55,000.
Key Takeaways for Baltimore Investors
- Location Velocity Near Anchor Parks: Properties situated near strong local anchors like Patterson Park command high buyer demand when finished to modern standards.
- Comprehensive Capital Structure: Funding 100% of a substantial $93,355 rehab budget ensures the project remains fully capitalized through completion.
- Speed Prevents Lost Contracts: Closing in five business days allows investors to secure steep purchase discounts on distressed inventory.
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