First Trust Deed collateralized by a fully constructed multifamily, residential structure in Ogden, Utah (approximately 38 miles north of Downtown Salt Lake City, UT). Upon acquisition of this 10-unit property, the borrower will begin re positioning the asset by increasing the rents via tenant turnover and a mid-level repair. Nine of the ten units are two bedrooms each and will require about $7,500 per unit in repairs to increase rents. All tenants are currently on month-to-month leases or have already negotiated an early termination agreement. It is anticipated that the tenant turnover will be completed within the next 30 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: $705,000
Yield: 12.25% (Principal Balance ≥ $100,000); 12.00% (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.