Philadelphia, PA — DSCR

The Investor Scenario & Opportunity

A repeat real estate investor sourced an off-market, three-story brick rowhouse in the Point Breeze neighborhood of South Philadelphia. Located blocks from the Wharton Street corridor with fast access to Center City, the property sat in a high-demand pocket seeing steady capital appreciation. The distressed seller required a hard seven-day closing to clear pending tax liens and avoid a sheriff sale, allowing the investor to contract the home for $200,000, well below true market value.

The Challenge (Why Banks Failed)

Conventional lenders refused to finance the transaction. The property was in heavily unbankable condition, featuring a framing failure on the rear porch, missing copper piping, no functional HVAC, and a completely gutted interior. Furthermore, local banks required a 30-day processing period and a traditional appraisal process, which would have caused the investor to miss the seller's strict closing deadline and lose the contract to a cash buyer.

The Henry Solution (Loan Mechanics & Underwriting)

Hard Money Henry underwrote the transaction based on real estate fundamentals rather than automated bank red tape. We completed an in-house valuation using recent Point Breeze rowhouse sales, skipping the traditional appraisal delay.

We issued a firm commitment letter within 24 hours and structured a $260,000 loan, covering 90% of the purchase price ($180,000) and 100% of the construction budget ($80,000). The rehab funds were placed in an escrow account, released across four distinct construction draws as work milestones were verified. The entire deal closed and funded in five business days.

The Financial Win & Outcome

The investor executed an extensive gut rehabilitation over four months, converting the property into a modern open-concept home with a roof deck. Upon completion, the property was listed and sold for $405,000 after 14 days on the market.

Total Cost Basis: $305,000 (Purchase + Rehab + Financing/Holding Costs)

Final Sale Price: $405,000

Net Profit: $100,000

Key Takeaways for Local Investors

Speed closes off-market deals. Submitting a clear, fast close offer allows investors to secure steep purchase discounts from distressed sellers.

Asset-based underwriting protects your pipeline. Partnering with a lender who understands block-by-block Philadelphia comps eliminates traditional bank delays.

Full rehab funding preserves operational cash flow. Financing 100% of the construction budget keeps investor capital free for unexpected scope changes.

Have a fix and flip or bridge opportunity in Philadelphia that requires fast capital? Submit your deal address at hardmoneyhenry.com/apply for a 24-hour commitment letter.