Deal Details
Private Loan Type
Purchase
Approx. Funding Date
03/30/2024
Property Type
Property City
NA
Property State
OR
Loan Term (months)
60
Lien Type
1st Mortgage
Payment Type
Amortized
Purchase Price
$205,000
Loan-to-Purchase Price
48.78%
Location Type
Rural
Property Condition
Poor
Occupancy at Closing
Tenant-Occupied
Number of Units
3
Borrower's Plan
Continue Rental
Exit Strategy
Pay Down
Borrower Credit Rating
Average
Interest Rate
12.25%
Deal Summary
Blue-inc. Capital, a private lender based in Oregon, funded a $100,000 1st lien position private money loan for the acquisition of a 3-unit mixed-use commercial building in Lane County, OR. We funded 48.78% of the $205,000 purchase price, while the Borrower contributed 51.22% cash at closing. The Borrower was purchasing an investment property but due to the current retail tenant, a Cannabis business, traditional bank financing was not an option. The subject property was “funky” in terms of the layout, but is a great investment with regard to projected gross rental income. It features 2,292 square feet of retail space with a 1,488-square-foot 2-bedroom, 1-bath apartment above on the second level. It has approximately 45 feet of highway frontage and overlooks the River. It has two retail spaces on the main level. The upstairs apartment will be renovated. The gross rent for all three units is estimated at $3,500 per month. Our loan is fully amortized, with monthly principal and interest payments, over 60 months. The Borrower had an average credit score. They plan to continue leasing the property and pay off the entire loan over the 5-year term. The interest rate was 12.25%. This private money loan was funded in March 2024.