Over the past 18 months, Sharestates has noticed an increase in loan applications and closings for properties located in the city of Newburgh, NY in Orange County. Newburgh is a diverse city located in the Hudson Valley with a population of 28,177 people as of 2019. In the recent press, The New York Times describes Newburgh as, “Discontinuous, dynamic and detailed, Newburgh changes from block to block. It is historically, economically, and architecturally kaleidoscopic.”
According to Realtor.com, the median list price of a home in Newburgh in January 2021 is $275,000 with an average of 105 days on the market and a median rent price of $1,540. Newburgh contains many value-add opportunities for real estate developers. Since the early days of the COVID-19 pandemic, there has been a surge of New York City residents looking to move out of the city into more suburban and less populated areas. Orange County, New York saw the second-largest increase in year-over-year sales.
Sharestates has funded 74 Newburgh loans to date for a total funded volume of $29,257,000
- 38 of the loans funded were for residential properties
- 23 of the loans funded were for mixed-use properties
- 4 of the loans funded were for land deals
- 6 of the loans funded were for multi-family
- 3 of the loans funded were portfolio loans
- Average loan size: $395,364
- The average loan to value (LTV): 66%
- Average renovation budget: $182,760
- Average after repair value (ARV): 61% or $2,507,280
Mixed-Use Recently Funded in Newburgh
The borrower acquired the property as a mixed-use (13 residential & 5 commercial unit) property. The loan is for 12 months. The renovation includes an entire gut demolition which will include flooring, electrical, plumbing, stairs, windows, insulation, decking, framing, bathroom fixtures, and much more.
BEFORE
POST-CONSTRUCTION RENDERING
- Appraised value: $1,270,000
- Loan amount: $1,026,000
- LTV: 76%
- After-repair value: $2,205,000
- ARV: 61%
Residential Recently Funded in Newburgh
The next recently funded project by Sharestates is a residential (2 units) real estate loan. The borrower acquired the property with the goal to “fix and flip” the property. The borrower has a renovation budget of $52,500 which includes everything from demolition, plumbing, electrical, doors, painting, trash removal, windows, plumbing fixtures, bathroom accessories, and more.
BEFORE
POST-CONSTRUCTION RENDERING
- Appraised value: $475,000
- Loan amount: $340,000
- LTV: 54%
- After-repair value: $570,000
- ARV: 61%
To learn more about getting funding through Sharestates.
