Deal Details
Private Loan Type
Refinance
Approx. Funding Date
08/05/2021
Property Type
Property City
Brooklyn
Property State
NY
Loan Term (months)
48
Lien Type
1st Mortgage
Payment Type
Interest Only
Property Value
$658,000
Loan-to-Value
38%
Property Neighborhood
Sunset Park
Number of Units
2
Exit Strategy
Refinance
Interest Rate
10.99%
Deal Summary
Gelt Financial, a direct hard money lender, funded a $250,000 refinance loan secured by a 2-unit residential investment property in the Sunset Park neighborhood of Brooklyn, NY. The Borrower inherited the property and never made any of the mortgage payments. The loan was in foreclosure and had lots of back payments accumulated along with penalties. Our loan paid off the previous lender and brought the Borrower out of foreclosure with a new 1st mortgage. We overlooked the Borrower’s credit/financials and focused on the equity in the property, plus the rental income. We estimated the value to be around $658,000 which puts our loan at around 38% loan-to-value. Both units were rented and generating enough income to service the debt. The interest rate was 10.99%. The loan term is 48 months, and the Borrower will eventually refinance with a long-term loan. This hard money loan was funded in August 2021.