First Trust Deed collateralized by a 1.38-acre parcel of land which has a 36-unit apartment building on it. It is the borrower’s intent to acquire the site and rehab the property to increase the net operating income, therefore, increasing the property’s value. Although there is much in the form of deferred maintenance on the asset, the borrower is well equipped to rehab the already partially occupied units. They will first begin the rehab on the vacant units and will not sign any rehabbed units to long term leases. This will ensure they will be able to rehab all units during the first 14 months of owning the property. Once the property is fully rehabbed and over 90% leased for 90 consecutive days, they will pay this loan off via long term financing.
Master Loan Amount: $2,170,000
Yield: 10% interest is paid monthly in arrears with payments due on the 1st of each month with a 10-day grace period.
Term: Nine months with two optional nine-month extensions at maturity. Final maturity date is 7/23/23.
