Hard Money Loan for Student Housing in Pittsburgh, Pennsylvania

Equity Lending, Inc., a direct lender for the DMV region, funded a $700,000 1st lien position hard money loan for the acquisition of a 99-unit student housing building that housed students at Indiana University of Pennsylvania in Pittsburgh, PA. There was significant equity in the purchase, which enabled us to include 6 months of prepaid interest. Equity Lending does not typically include interest reserves, but we were able to make an exception in this case because of the strong acquisition and the Borrower’s credentials. The loan proceeds were used to acquire a large commercial property at a very desirable downtown location in Pittsburgh, PA. The Borrower had a strong plan to do a light renovation to increase rents and drive down expenses. He had prior experience in this type of project. The Borrower supplied his renovation funds and was quickly able to establish occupancy and strong cash flow. He was then able to secure permanent financing with a bank. The interest rate was 12%, and we did not charge any points. The loan term was set at 6 months. This hard money loan was funded in September 2016.