Pennsylvania Hard Money Deal - Close

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Pennsylvania

This loan request serves as final financial outcome of a 5 year divorce proceeding. Seven total properties are to be split between husband and wife. I am receiving three of the properties and she is receiving four properties. As such, there were several common debts related to the portfolio including a blanket mortgage on all 7 properties. My portion of all debt per the marital settlement agreement is $1,142,000. All three properties have been owned in excess of 20 years.

Currently wife is operating the properties at a 70% occupancy rate. It is anticipated that apartment turnover and rentup to 90% plus shall occur within 60 days as most of the empty units do not require much work. The cash out will be applied to repairs, closing costs, interest reserve and working capital.

The three properties that I am taking over are attached in the spreadsheet and rent rolls are attached as well. As you can see, there is a 10 unit residential property, a 3 unit residential property and a 13 unit mixed use, three retail spaces and ten residential. The exit strategy is to market the properties as soon as rentup is achieved and sale within the year and most likely six months. I have personally been approached by three buyers and my property manager has several more interested at the time of this writing.

The current market value of the properties as determined by the attached appraisals is $1,819,000 and this loan request is for 70% LTV or 1,273,000. The appraisals were ordered by a lending institution which is currently on hold for funding at this time. It is my intention to move forward with this request ASAP.

Properties located in New Cumberland, Lemoyne and Enola.