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Deal Details
Private Loan Type
Commercial Property Value Add
Approx. Funding Date
06/22/2023
Property Type
Property City
Hagerstown
Property State
MD
Loan Term (months)
12
Lien Type
1st Mortgage
Payment Type
Interest Only
Purchase Price
$335,000
Loan-to-Purchase Price
65%
Borrower's Contribution to Purchase
35%
Source of Borrower's Contribution
Cash
Renovation Budget
$245,000
Renovation Budget Funded
100%
Borrower's Contribution to Budget
0%
After-Repair Value
$715,000
Loan-to-After-Repair Value
65%
Renovation Project Scope
Conversion
Location Type
Urban
Property Condition
Fair
Occupancy at Closing
Vacant
Number of Units
5
Building Square Footage
5,920
Borrower's Plan
Rehab and Rent
Exit Strategy
Refinance
Borrower Credit Rating
Excellent
Interest Rate
14%
Origination Points
2%
Deal Summary
Real Property Investment Partners, a direct private lender, funded a $465,000 1st lien position bridge loan for the acquisition of a 5-unit mixed-use property in Hagerstown, Maryland. We funded 100% of the $245,000 renovation budget and 65% of the $335,000 purchase price, while the Borrower contributed 35% cash to the purchase at closing. The after-repair value was estimated at $715,000 so our loan-to-after-repair value was 65%. This was a great opportunity to help renovate the historic downtown area. The plan is to convert the upstairs office space into residential units. The subject property was in fair condition and vacant at closing. It is approximately 5,920 square feet. The Borrower had excellent credit and lots of experience. They own over 50 units in the local area. They plan to lease the property upon completion of the rehab and eventually refinance as an exit strategy. The interest rate was 14% and we charged 2% origination points. The loan term was set at 12 months. This rehab loan was funded in June 2023.
Funded By
Real Property Investment Partners
NO APPRAISAL REQUIRED. Providing institutional-grade lending with a local presence.
Dealmakers
Tibor Wilheim
Managing Director