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Deal Details
Private Loan Type
Purchase
Approx. Funding Date
03/31/2021
Property Type
Property City
Vineland
Property State
NJ
Loan Term (months)
24
Lien Type
1st Mortgage
Purchase Price
$350,000
Loan-to-Purchase Price
100%
Renovation Budget
$125,000
Renovation Budget Funded
100%
After-Repair Value
$1,100,000
Exit Strategy
Sale
Borrower Credit Rating
Poor
Deal Summary
Gelt Financial, a direct hard money lender, provided 100% financing for the purchase and rehab of a small commercial property in Vineland, NJ. The Borrower/Sponsor is a contractor who had a solid plan to purchase the property, which was previously a funeral home, and convert it into a medical office. He already had a lease agreement signed with a non-profit organization to occupy the property as soon as the renovations are completed. The purchase price was $350,000 with a rehab budget of $125,000. We estimate the completed value will be around $1.1M. The exit strategy is to sell the property to the new tenant within 2 years. The Borrower has a very bad credit history and didn’t have the cash to contribute, but he’s a repeat client we’ve provided financing to in the past, so we decided to be a JV equity partner to provide a 1st mortgage and all the equity. The 1st mortgage will earn interest, and we will receive 50% of the profits upon the sale. This JV equity deal was funded in March 2021.
Funded By
Gelt Financial, LLC
Creative Private Financing for Commercial Real Estate since 1989