First Trust Deed collateralized by a fully constructed multifamily, residential structure in Salt Lake City, Utah (approximately two miles south of Downtown Salt Lake City, UT). Upon acquisition of this eight-unit property, the borrower will begin re-positioning the asset by increasing the rents via tenant turnover and a mid-level repair. All eight of the units are one bedroom each and will require about $6,000 per unit in repairs. This property is mostly vacant, and it will be rented through the Salt Lake City Housing Program on master leases for their transitional housing program. In about six months once the rehab work is completed and the new tenants are found, the property will be held as another asset in their long-term portfolio or possibly sold.
Loan Amount: $503,000
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.