Hard Money Loan for Coconut Grove Miami House Rehab

Funded by Gelt Financial, LLC

$300,000

Deal Details

Private Loan Type

Residential Rehab

Approx. Funding Date

12/17/2021

Property Type
Single Family Residence
Property City

Miam

Property State

FL

Loan Term (months)

12

Lien Type

1st Mortgage

Payment Type

Interest Only

Purchase Price

$300,000

Loan-to-Purchase Price

50%

Borrower's Contribution to Purchase

50%

After-Repair Value

$800,000

Exit Strategy

Sale

Borrower Credit Rating

Poor

Deal Highlights

Borrower had a horrible credit history, which made it difficult to get a loan from other lenders.
We saw huge potential with the project and there was plenty of equity.

Deal Summary

Gelt Financial, a direct lender based in Palm Beach County, funded a $300,000 hard money loan secured by a single-family home in the Coconut Grove neighborhood of Miami. The Borrower had recently purchased the property for $300,000 cash, so it was owned free-and-clear. We provided $150,000 just to recapitalize the Borrower, and the remaining $150,000 was held back for the renovation budget. We expect the after-repair value to be around $700,000 to $800,000. Most of the homes in this neighborhood are being torn down and redeveloped, but this home was just taken down to the studs. The Borrower had a horrible credit history, which made it difficult to get a loan from other lenders. We saw there was huge potential with the project and there was plenty of equity. The loan term is 12 months, and we expect to be paid off with a sale of the home. This hard money rehab loan was funded in December 2021.

Funded By

Gelt Financial, LLC

Creative Private Financing for Commercial Real Estate since 1989