Hard Money Refinance & Rehab for SFR in New Orleans, Louisiana

Park Place Finance, a direct private real estate lender, funded a $629,300 1st lien position rate & term plus rehab loan secured by a gorgeous Center Hall single-family home in New Orleans, LA. We funded 70% of the $899,000 current value and 100% of the $150,000 renovation budget, while the Borrower came to the closing table with no cash. The after-repair value was estimated at $1,175,000, so our loan-to-after-repair value was 66.32%. We paid off a previous loan balance of $606,000. The Borrower will be restoring the historic building to its former beauty using the rehab budget provided without making any structural changes and keeping all original architecture intact. The subject property is approximately 3,700 square feet set in a 4,959-square-foot lot. The Borrower is an experienced investor who runs their own construction company out of New Orleans. The exit strategy is to either flip and sell the property once restored or to hold it as an STR (short-term rental). The interest was 11.99% and we charged 1.75% origination. The loan terms were our standard 12-month term loan with interest-only payments and no prepayment. This SFR hard money loan was funded in October 2023.