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Deal Details
Private Loan Type
Residential Rehab
Approx. Funding Date
02/02/2024
Property Type
Property City
Mexico
Property State
MO
Loan Term (months)
12
Lien Type
1st Trust Deed
Payment Type
Interest Only
Purchase Price
$57,000
Loan-to-Purchase Price
96%
Borrower's Contribution to Purchase
23%
Source of Borrower's Contribution
Cash
Renovation Budget
$6,000
After-Repair Value
$85,000
Loan-to-After-Repair Value
64%
Renovation Project Scope
Cosmetic
Property Condition
Brand New Build
Occupancy at Closing
Vacant
Number of Units
1
Building Square Footage
910
Borrower's Plan
Rehab and Sell
Exit Strategy
Sale
Borrower Credit Rating
Fair
Interest Rate
12.5%
Origination Points
2.5%
Deal Summary
Minnow Loan, a hard money lender based in Missouri, funded a $54,450 1st lien position loan for the purchase and rehab of a single-family home in Mexico, Missouri. We funded 96% of the $57,000 purchase price, while the Borrower contributed 4% cash at closing. The cosmetic renovation budget was $6,000 which we fully funded. The after-repair value was estimated at $85,000 so our loan-to-after-repair value was 64%. This loan was to fund the purchase of an off-market home and provide a small rehab budget for repairs. Upon purchasing, the Borrower wasn’t sure if they wanted to sell the home once the rehab was complete or keep it as a long-term rental. Once the property was complete and evaluating the market conditions with the investor’s agent, they decided to sell. This was the first project for Minnow and this Borrower, and while the Borrower’s credit score was low, he qualified for the project based on the overall numbers for the deal. The house is approximately 910 square feet. The interest rate was 12.5% and we charged 2.5% origination points. The loan term was set at 12 months. This SFR rehab loan was funded in February 2024.
Funded By
Minnow Loan
Your Deal. Our Money.
Dealmakers
Shelby Reed
Co-Founder