First Trust Deed collateralized by a fully constructed multifamily, residential structure in Ogden, Utah (approximately 39 miles north of Downtown Salt Lake City, UT). Upon acquisition of this 21-unit property, the borrower will begin re-positioning the asset by increasing the rents via tenant turnover and a mid-level repair. All 21 units are one bedroom each and will require about $5,000 per unit in repairs to increase rents. All tenants are currently on month-to-month leases. It is anticipated that the tenant turnover will be completed within the next 45 days. Once the rehab work is completed and the new tenants are found (paying higher rents), the property will be held as another asset in their long-term portfolio.
Loan Amount: $1,335,000
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.