South Dakota Hard Money Deal - Close

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31 deals

South Dakota

Looking to consolidate and refinance all of my properties given new market conditions. Mix of commercial, mixed use, multifamily, and single family homes. Looking to see what options are out there and terms. Total owed $7.8M. Properties located in Aberdeen, SD. Looking for an interest only payment that’s in the ballpark of $40K/month is the goal. I can sustain that with operational costs and some flexibility just in case I start to experience higher vacancy rates due to coronavirus. Haven’t been impacted much yet since we’re so geographically isolated, but this is clearly interesting times. 6% interest with a 20 year amortization is $39K per month - that’s doable. Add a 2 year balloon and we’re buying time for financing to be completed. I currently generate $87K in gross rents and I have $30K in non-negotiable expenses (WSG, utilities, insurance, etc). The remaining $27K is for repairs, maintenance, unexpected expenses, putting food on the table for me and my crew, etc. We usually operate between $15K-$20K for these expenses since we’re aggressively renovating underdeveloped assets.