Louisiana Lenders for Multifamily and CRE Value Add Projects

I Fund Cities, an alternative lending platform, funded a $504,399 senior lien position loan for the rehab of an 8-unit multifamily property in Hammond, LA. The purchase price was $306,500 and the renovation budget was $269,999. The after-repair value was estimated at $844,000 so our loan-to-ARV was 60%. The Borrower was able to come out of pocket with nothing down and get funding for renovations. This repeat Borrower from the New Orleans area had a difficult situation with some distressed units. After getting his original loan from us to purchase and rehab the property, a fire took place. He was then having trouble selling the units because of fire damage. He reached out to us to see about the potential to rehab the units and turn them into rentals. We were able to use the equity that the Borrower had in the overall project to help the Borrower refinance his existing loan into an iFC bridge Fix and Hold loan (Once the “fix” renovations are complete, the Borrower will come back to us for a “hold,” 30-year rental DSCR loan). This was just the solution that this Borrower needed to move forward! The loan term was set at 12 months. This multifamily rehab loan was funded in January 2023.