Hard Money Loan for Coconut Grove Miami House Rehab

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.