First Trust Deed collateralized by a fully developed four-plex apartment complex in Tooele, Utah (approximately 34 miles southwest of Salt Lake City, UT). None of the four units in the apartment complex have been updated by the borrower at this time although it is expected to commence when the last lease expires in November of this year. Once the tenants have moved out, the borrower will compete renovations and release the site. It is anticipated to take three months for renovations and releasing at which point they expect to have increased rents from a total of $3,600 monthly to $4,400 monthly. Once the rehab is completed, it is the borrower’s intent to sell the building to an investor who will keep it as a cash flowing asset.
Loan Amount: $299,000
Yield: 10.25% (Principal Balance ≥ $100,000); 10.00% (Principal Balance < $100,000) Interest is paid monthly in arrears with payments due on the 1st of each month with a 10-day grace period.
Term: Six months with a six-month extension.