Loan amount
$23,000,000
Loan type
As-Is Property Value
$34,000,000
LTV
68%
{LTV}
Property type
Apartment building
Borrower Details
Credit score
542
Deal experience
12 deals
This loan scenario was submitted by a Broker
Property Details
State
California
Loan Details
Additional Loan Information
I would like to buy a 60-unit property in East Hollywood/Los Feliz, which is a class A/B location. The property has add-value potential and the rents are not at market (serious up-side). Also, the Facade is old-looking and the landscaping needs to be updated. I have a portfolio of CRE properties that I managed for my employer at that time (1992-2004) before he past away. This is a very nice property which I will live in and rehab it at the same time. The ARV for that area is about $34MM to $35.5MM (roughly). Upgrades should take 12-18 months. Renovation budget of $3M. Funds will come from rent increases, lender (a blended-rate loan) - also, anything that I can do to lessen expenses and increase rents accordingly and legally. Not yet in contract.
I would like to borrow the Down Payment secured by a PTP and ARV equity on the property or it can be rolled into the purchase price loan. Plus, I will live in the property as an on-site property manager. I have 12 years experience in CRE properties, two university degrees, custom BP schematics of the business model, I wrote several articles. I lost everything and I was robbed at gunpoint. I came to you with hopes you can get me out of this rut and help me get back on the saddle so I can complete my mission in helping the community.
The seller's asking: $22MM @ 3.6% CAP. My offer is $ 23MM (I just found out last night this is a "Trust Sale"- many competing buyers - highest bidder wins...even at $23MM there is still a value-add window.) ARV: $ 34MM @ 5.2% CAP (not 6.8% like it says in OM)...not for this area anyways.....usually A/B locations are 3% CAP - 5% CAP in this market. DP is raised/borrowed short-term secured with a PTP, and future equity in the property. Plus, I will live in one of the units as a primary residence. Again, this is 60 units only one or two units are vacant. DP is 20% ($4.6MM) - this is a short - term I/O no prepay. The 80% can be financed with a 3/1 ARM or 5/1 ARM I/O loan (the DP and the 80% Financed loan can be a "Blended I/O loan" instrument through the same lender/investor.)
I do have others that are available at a much lower price like $16MM down to $7MM with a 3.5% CAP.
I would like to borrow the Down Payment secured by a PTP and ARV equity on the property or it can be rolled into the purchase price loan. Plus, I will live in the property as an on-site property manager. I have 12 years experience in CRE properties, two university degrees, custom BP schematics of the business model, I wrote several articles. I lost everything and I was robbed at gunpoint. I came to you with hopes you can get me out of this rut and help me get back on the saddle so I can complete my mission in helping the community.
The seller's asking: $22MM @ 3.6% CAP. My offer is $ 23MM (I just found out last night this is a "Trust Sale"- many competing buyers - highest bidder wins...even at $23MM there is still a value-add window.) ARV: $ 34MM @ 5.2% CAP (not 6.8% like it says in OM)...not for this area anyways.....usually A/B locations are 3% CAP - 5% CAP in this market. DP is raised/borrowed short-term secured with a PTP, and future equity in the property. Plus, I will live in one of the units as a primary residence. Again, this is 60 units only one or two units are vacant. DP is 20% ($4.6MM) - this is a short - term I/O no prepay. The 80% can be financed with a 3/1 ARM or 5/1 ARM I/O loan (the DP and the 80% Financed loan can be a "Blended I/O loan" instrument through the same lender/investor.)
I do have others that are available at a much lower price like $16MM down to $7MM with a 3.5% CAP.
Status
Closed
Created
March 16, 2020 - 8:36am
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