Hard Money Loan for 5-Unit Multifamily Property in Lake Worth, Florida

Funded by Gelt Financial, LLC

$710,000

Deal Details

Private Loan Type

Refinance

Approx. Funding Date

03/13/2023

Property Type
Multifamily
Property City

Lake Worth

Property State

FL

Loan Term (months)

12

Lien Type

1st Mortgage

Payment Type

Interest Only

Property Value

$1,192,000

Loan-to-Value

60%

Renovation Budget

$150,000

Renovation Project Scope

Light Rehab

Location Type

Suburban

Property Condition

Good

Occupancy at Closing

Partially Occupied

Number of Units

5

Lot Square Footage

6,750

Borrower's Plan

Rehab and Sell

Exit Strategy

Sale

Borrower Credit Rating

Average

Interest Rate

12.50%

Origination Points

3%

Deal Highlights

Refinance & light rehab on 5-unit multifamily.
$150K in holdback for two vacant unit rehabs.
Successful real estate flipper in South Florida.

Deal Summary

Gelt Financial, a direct CRE lender, funded a $710,000 1st lien position refinance and light rehab hard money loan secured by a 5-unit multifamily property in Lake Worth, FL. Roughly $150,000 was put into renovation draws as the work was completed. The property value was estimated at $1,192,000 so our loan-to-value was 60%. The Borrower approached Gelt Financial because they needed to refinance and rehab 2 vacant units. Their extensive background in real estate flips and holds gave them enough credibility. The subject property was partially occupied at closing and contained 1 two-bed unit, 1 one-bed unit, and 3 studio apartments. It was owner-managed with annual leases in place and on-site parking. It was built in 1929 and was in good condition but needed a light rehab in order to lease up the remaining vacant units. The lot was approximately 6,750 square feet. The Borrower plans to sell it as an exit strategy upon completion of the rehab. The interest rate was 12.50% floating and we charged 3% origination points. The loan term was set at 12 months. This multifamily hard money loan was funded in March 2023.

Funded By

Gelt Financial, LLC

Creative Private Financing for Commercial Real Estate since 1989