Liquid Lending Fuels Fast Flip in Nickerson, NE
Liquid Lending provided the quick capital required to purchase and rehab a promising property in the small town of Nickerson, Nebraska; all without draining the borrower's liquid cash reserves. Thanks to this swift financing, the investor successfully flipped the property for a fantastic profit in just two and a half months.
Introduction
Most people think of flipping houses in big cities, but there's real money to be made in rural markets like Nickerson, Nebraska, if you know what you're doing. However, properties in smaller towns often sit on the market longer, making traditional lenders hesitant to finance these out-of-the-way real estate projects.
This particular client is a highly experienced investor who intimately understands the local Nebraska market. When they found a distressed single-family home at 220 N Cherry St, they knew it was a solid opportunity with great potential.
However, to make the numbers work, they needed a lending partner who could provide capital quickly, who understood their vision, and who wouldn't be deterred by the property's rural location.
The Problem
The Client Needed Help With Cash Flow and Timing
The investor faced a challenge common to active real estate professionals: managing cash flow across multiple projects. As Liquid Lending Co-Founder Owen Dashner notes, "The minute you start getting two deals, three deals, four deals going on at once, you start realizing quickly how fast the checks that you're writing are going to go out the door."
Additionally, the property's location in Nickerson meant that the expected time on the market would be longer. The comps showed the 3-bedroom home would sell in the $170,000 to $190,000 range, but the investor needed to act fast to secure the purchase.
The total budget for the purchase and the rehab was $110,000. Relying on traditional bank financing would take much too long, risking the deal and tying up the investor's own liquid cash for months.
The Solution
Liquid Lending Saw the Value And Offered a Hard Money Loan
Liquid Lending Solutions stepped in to provide a fast, flexible hard money loan. Because the borrower was experienced and highly organized, they brought all the necessary documents and already had the title lined up. This preparation allowed the Liquid Lending team to move incredibly fast.
Because Liquid Lending is built by investors, they immediately saw the value in the deal without relying on slow bank metrics. Dashner added, "Once you do those things, it's a pretty easy yes when there's that much room in it."
The Outcome
The Rehabilitation Resulted in a $70,000 Value Increase
With funding secured, the investor efficiently rehabbed the Nickerson property and put it right back on the market. They successfully sold the 1,812-square-foot home for a pending price of $180,000. Since they were all in at about $110,000, this resulted in an incredible gross spread of $70,000.
The rapid timeline meant holding costs were kept to a minimum, and the investor paid off the Liquid Lending loan in about two and a half months. The project was a massive success for the borrower.
The Takeaway
This successful Nickerson flip demonstrates that having reliable access to capital is a real estate investor's greatest asset. Dashner advises, "Having good lenders, access to capital in your back pocket ahead of time before you're actually writing offers on deals can go a long way."
Hard money is a powerful tool to get deals done with speed and certainty, allowing you to scale your business without draining your personal funds. If you're an active investor looking to leverage the velocity of money, Liquid Lending Solutions is here to help. Reach out to our team today to get your next highly profitable project funded.
