Rehab Loans for Multifamily Projects

Conventus LLC, a direct private mortgage lender, funded a $2,130,000 1st lien position purchase and rehab loan for the acquisition of a 16-unit multifamily property in Miami Beach, FL. We funded 100% of the $240,000 renovation budget and 60% of the $3,100,000 purchase price, while the Borrower contributed 40% cash to the purchase at closing. The as-is valuation came in at $3,170,000 and the As-complete value was $3,640,000. Our loan-to-after-repair value was 59%. The investment plan is to give existing tenants a 60-day notice to vacate, lightly rehab the units, and upgrade the exterior. The units will be vacated in stages as they prefer to keep the property cash flowing during renovations. The subject property was in fair condition. It was approximately 7,226 square feet. The Borrower had good credit. They plan to sell the property upon completion of the rehab. The interest rate was 9% and we charged a 1% origination point. The loan term was set at 18 months with a 9-month prepay, interest only. This multifamily rehab loan was funded in April 2023.

Conventus LLC, a direct private mortgage lender, funded a $3,655,000 1st lien position bridge loan for the acquisition of a 21-unit multifamily property in Berkeley, CA, next to Oakland the East Bay Area. We funded 85% of the $4,300,000 purchase price, while the Borrower contributed 15% cash at closing. They will also self-fund 100% of the $225,000 rehab budget. The subject property was acquired in good condition and was tenant-occupied at closing. The Borrower had excellent credit. They plan to buy out 5 to 8 tenants, do minor cosmetic upgrades, and eventually refinance with long-term conventional debt as an exit strategy. They anticipate the value to increase to $6,000,000. So the loan-to-after-repair value will be approximately 61%. We charged a 10.5% interest rate and a 1.5% origination fee. The loan term was set at 12 months with no prepayment period or penalty. This multifamily bridge loan was funded in April 2023.

SDC Capital, a direct lending firm in Burbank, funded a $1,589,000 private money loan for the purchase and rehab of a 6-unit multifamily building in Los Angeles. The Borrower, a repeat client, was under contract to buy the property which needs a lot of work, including a soft-story retrofit. The Borrower’s plan is to renovate the entire property and bring rents up to market. They needed a bridge loan that included cash to help fund the renovations. They knew they could count on SDC to quickly deliver fair and simple terms. We inspected the property ourselves to confirm the value and loan-to-value of 72%. Our familiarity with the Borrower and their execution allowed us to confidently underwrite this loan and close fast with very competitive pricing. The interest rate was 7.90%, and we only charged 1 point for the origination fee. The loan term was set at 12 months. This private money loan was funded in February 2021.