Deal Details
Private Loan Type
Refinance
Approx. Funding Date
03/13/2023
Property Type
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 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.