Historic Exterior Masonry Restoration & Open Main-Floor Layout Fix & Flip

The Investor Scenario & Opportunity

An experienced urban real estate developer identified an off-market two-story brick rowhouse in the Locust Point neighborhood of South Baltimore. Situated near Latrobe Park, Under Armour Global Headquarters, and Fort McHenry, Locust Point is one of Baltimore's premier waterfront residential sub-markets, attracting high-earning corporate employees, medical staff, and young families.

The deal was secured directly from an out-of-state owner liquidating non-core inherited assets. The historic brick property had experienced years of water intrusion through deteriorating exterior mortar joints, rendering the building unbankable for retail buyers. The seller requested an immediate cash settlement without repairs or real estate brokerage fees. The developer negotiated an as-is purchase price of $185,000. Fully renovated rowhouses on neighboring streets featuring restored brick facades and open main floor plans were selling consistently around $400,000.

The Strategy & Capital Requirement

The core requirement centered on funding speed combined with liquid capital preservation across active development sites. The seller established a strict six business day settlement window to execute the contract before relocating capital into an active 1031 exchange replacement property.

At the same time, the borrower had equity deployed across an active full-gut rowhouse renovation in nearby Federal Hill. To maintain adequate liquidity for trade contractor payroll and material deposits on that active job site, the developer needed a direct capital partner capable of closing in five business days while funding 90% of the purchase price and 100% of the renovation scope.

The Henry Solution (Loan Mechanics & Underwriting)

Hard Money Henry underwrote the transaction based on direct real estate equity and local sub-market sales comparables. Our internal underwriting team evaluated recent Locust Point rowhouse sales within 24 hours, completely waiving traditional third-party appraisal requirements.

We issued a firm commitment letter and structured a $258,500 total loan facility, financing 90% of the purchase price ($166,500) and 100% of the renovation scope ($92,000). Construction funds were held in escrow and released across three milestone draw disbursements as work was inspected and verified. The transaction funded and closed in five business days.

The Financial Win & Outcome

The developer executed a 75-day targeted renovation program. The primary value-add strategy focused on restoring the historic exterior brick masonry facade and removing main-floor load-bearing walls. The investor allocated $32,000 of the $92,000 budget to repoint exterior brick masonry, apply breathable silicone sealants, and install historic-compliant windows. Another $28,000 was dedicated to removing main-level partition walls and installing structural steel support beams to create an open living space.

The remaining $32,000 funded a custom kitchen with a central quartz island, modern bathroom finishes, refinished hardwood flooring, and fresh interior paint. Restoring historic exterior charm while delivering a modern open layout drove competing offers within four days of market release.

• Purchase Price: $185,000
• Rehab Budget: $92,000 (Historic masonry repointing, structural steel wall removal, kitchen overhaul)
• Financing & Holding Costs: $16,000
• Selling Costs (6%): $24,000
• Total Cost Basis & Expenses: $317,000
• Final Sale Price: $400,000
• Net Profit: $83,000

Key Takeaways for Local Investors

• Historic masonry repointing protects urban equity. Restoring exterior brick facades eliminates water infiltration issues and commands top resale valuations in historic historic districts.
• Direct private sales demand guaranteed settlement speed. Partnering with a direct balance-sheet lender who guarantees closing in five business days allows developers to capture deep off-market discounts.
• 100% construction debt maintains working capital. Structuring loans to cover complete renovation draws keeps investor cash flow liquid across concurrent development projects.

Planning a single-family fix and flip or historic rowhouse renovation in Baltimore or Maryland? Submit your property address at hardmoneyhenry.com/apply for a 24-hour commitment letter.