Chicago, IL

$300,000

2-4 Units Residential, Mixed-Use

Refinance

08/06/2021
Transaction by
Gelt Financial, LLC
Gelt Financial, a direct private lender, funded a $300,000 hard money loan to refinance a partially completed property rehab project in Chicago. The Borrower is a local real estate investor with lots of experience and a portfolio of over 20 rental properties in the Chicagoland metro area. They had acquired a 3-unit property in the Lower West Side neighborhood and started the rehab project, but they ran out of money, and the property didn't have enough equity to get the amount they needed. We refinanced their previous hard money lender, and we cross-collateralized two of their rental properties in 2nd lien position to get the cash out funds for the rehab. The subject property has 1 retail unit on the ground floor and 2 residential units above. The Borrowers plan to occupy the retail space to operate their property investment company and will lease the 2 residential units. They have poor credit, so we set the loan term at 24 months to give them enough time to quality for conventional financing to pay off our loan. This hard money loan was funded in August 2021.