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Deal Details
Private Loan Type
Purchase
Approx. Funding Date
07/13/2022
Property Type
Property City
Sedona
Property State
AZ
Loan Term (months)
11
Lien Type
1st Mortgage
Payment Type
Interest Only
Purchase Price
$1,700,000
Loan-to-Purchase Price
85%
Borrower's Contribution to Purchase
15%
Source of Borrower's Contribution
Cash
Renovation Budget
$444,990
Renovation Budget Funded
80%
Borrower's Contribution to Budget
20%
After-Repair Value
$3,600,000
Loan-to-After-Repair Value
50%
Renovation Project Scope
Conversion
Location Type
Vacation Area
Property Condition
Good
Occupancy at Closing
Vacant
Number of Units
2
Borrower's Plan
Rehab and Rent
Exit Strategy
Refinance
Interest Rate
11%
Origination Points
0%
Deal Summary
Bench Equity, a direct lender for alternative loans based in Mesa, funded a $1,800,992 hard money loan in 1st lien position for the acquisition of a luxury single-family residence in the vacation area of Sedona, AZ. The purchase price was $1,700,000 and the renovation budget was 444,990. We funded 85% of the purchase and 80% of the renovation while the Borrower contributed 15% and 20% cash at closing, respectively. The after-repair value was estimated to be $3,600,000 so our loan-to-after-repair value was 50%. The luxury property was pre-approved for a lot split by the city. The Borrower maximized the existing buildings by rehabbing the home while converting a detached garage into a second SFR. Excellent payment history as a repeat Borrower qualified the Borrower for an above-average loan amount with the same low rates and no points options we offer to all of our Borrowers. The subject property was in good condition and vacant at closing. The Borrower plans to lease the property upon completion of the conversion rehab, and eventually refinance as an exit strategy. The interest rate was 11%. The loan term was set at 11 months. This SFR hard money loan was funded in July 2022.
Funded By
Bench Equity LLC
Direct Private Money | Zero Points and High Leverage Bridge Loans for Residential Investment Properties