Hard Money Land Loan in Miami, FL

Funded by Gelt Financial, LLC

250,000

Deal Details

Private Loan Type

Equity Cash Out

Approx. Funding Date

10/14/2022

Property Type
Commercial Land
Property City

Miami

Property State

FL

Loan Term (months)

24

Lien Type

1st Mortgage

Payment Type

Interest Only

Property Value

$500,000

Loan-to-Value

50%

Property Neighborhood

Downtown

Location Type

Urban

Property Condition

Vacant Land

Lot Square Footage

6,200

Borrower's Plan

Development

Exit Strategy

Sale

Interest Rate

12%

Deal Summary

Gelt Financial, a direct hard money lender, funded a $250,000 equity cash-out loan secured by commercial vacant land near Downtown Miami. The Borrower had recently purchased the land for $500,000 with their own cash. They wanted to get some of that cash back to use for developing the property. We agreed to provide half of their purchase price, so our 1st mortgage is 50% loan-to-value. We were able to close in 2 weeks. The subject property size is approximately 6,200 square feet and was zoned for 8 units, either multifamily or townhomes. The interest rate for our loan was 12%, and the loan term was set at 24 months. At the time of closing, the Borrower had not clearly decided on the exit strategy. Their preferred option was to sell the entitled land without having to build. However, with the declining market conditions in late 2022, it may be too difficult to sell. Their backup plan was to develop the property and build the 8 units. This hard money land loan was funded in October 2022.

Funded By

Gelt Financial, LLC

Creative Private Financing for Commercial Real Estate since 1989

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