)
Deal Details
Private Loan Type
Purchase
Approx. Funding Date
12/06/2022
Property Type
Property City
Denver
Property State
CO
Loan Term (months)
6
Lien Type
1st Mortgage
Payment Type
Interest Only
Purchase Price
$325,000
Loan-to-Purchase Price
81.5%
Borrower's Contribution to Purchase
18.5%
Source of Borrower's Contribution
Cash
Location Type
Suburban
Property Condition
Poor
Occupancy at Closing
Vacant
Borrower's Plan
Rehab and Sell
Exit Strategy
Sale
Interest Rate
13%
Origination Points
0%
Deal Summary
Bench Equity, a direct lender for alternative loans, funded a $265,000 hard money loan in 1st lien position for the acquisition of a single-family residence in Denver, CO. We funded 81.5% of the $325,000 purchase price, while the Borrower contributed 18.5% cash at closing. The Borrower was both an experienced investor and tradesman who enjoyed Bench Equity’s No-Points option which gave him the flexibility to borrow 81% of the purchase price with an interest-only rate that didn’t have points which penalized him for finishing the project too quickly. The option to only pay interest for the time he needed the money instead of paying it upfront in the form of origination points, allowed him to complete the rehab himself and enjoy bigger profit margins. The subject property was in poor condition and vacant at closing. The Borrower plans to sell the property upon completion of the rehab. The interest rate was 13%. The loan term was set at 6 months. This SFR hard money loan was funded in December 2022.
Funded By
Bench Equity LLC
Direct Private Money | Zero Points and High Leverage Bridge Loans for Residential Investment Properties
Dealmakers
Pierce Harmon
Market Manager - TX, CO, and UT