Deal Details
Private Loan Type
Purchase
Approx. Funding Date
11/19/2021
Property Type
Property City
Peoria
Property State
IL
Loan Term (months)
36
Lien Type
1st Mortgage
Payment Type
Interest Only
Purchase Price
$195,000
Loan-to-Purchase Price
50%
Borrower's Contribution to Purchase
50%
Source of Borrower's Contribution
Cash
Building Square Footage
4,200
Borrower's Plan
Long-Term Rental
Exit Strategy
Refinance
Borrower Credit Rating
Poor
Deal Summary
Gelt Financial, a direct private commercial real estate lender, funded a $100,000 hard money loan for the acquisition of a 4,200-square-foot office condominium in Peoria, IL. The Borrowers, a husband and wife investor, purchased the property through a CREXI online auction. The purchase price was $195,000 which we felt was a good deal. The Borrower put down $95,000 cash plus closing costs, so the LTV for our loan was just over 50%. They plan to lease the office space and hold it long-term. The Borrowers had low credit scores and were not bankable. We didn’t mind the poor credit, and we didn’t require an appraisal or third-party reports. The loan term was set at 36 months. We expect to be refinanced with a permanent loan. This hard money loan was funded in November 2021.