Deal Details
Private Loan Type
Refinance
Approx. Funding Date
05/01/2023
Property Type
Property City
Euclid
Property State
OH
Loan Term (months)
12
Lien Type
1st Mortgage
Payment Type
Interest Only
Property Value
$350,000
Loan-to-Value
53%
Location Type
Suburban
Property Condition
Excellent
Occupancy at Closing
Owner-Occupied
Number of Units
1
Building Square Footage
8,000
Borrower's Plan
Continue Occupancy
Exit Strategy
Refinance
Borrower Credit Rating
Poor
Interest Rate
13.50%
Origination Points
2%
Broker Commission
$5,000
Deal Summary
Gelt Financial, a direct CRE lender, funded a $185,000 1st lien position cash-out refinance bridge loan secured by a light industrial warehouse in Euclid, OH. The property value was estimated at $350,000 so our loan-to-value was 53%. The Borrower approached Gelt Financial because they needed to pay off debts and place additional equity into their property/business. They had poor credit. The subject property, approximately 8,000 square feet, is an owner-occupied flooring company that’s setup to house showrooms, offices, supplies, and storage. It was built in 1951 and was in excellent condition considering it was completely renovated for $200,000 about 7 years ago. The Borrower plans to continue occupying the property and eventually refinance as an exit strategy. The interest rate was 13.50% floating. We charged 2% origination points and the broker earned a $5,000 commission. The loan term was set at 12 months. This CRE cash-out refinance bridge loan was funded in May 2023.