Tennessee Hard Money Deal - Close

805

8 deals

Tennessee

Loan Amount: $10,000,000
Purchase or Refinance: Refinance
Property Type: Investment / Commercial
Occupancy: Property is vacant, but will be 100% occupied after rehab.
FICO: Trans 805 / Exp 802
State: TN
Details of Scenario:
$10mm Loan Amount:
- $3mm to pay off his partner
- $5mm to complete the rehab and closing cost
- $2mm for interest reserves and closing cost

*See Pg. 2 Below*




Questions
Question: What type of loan is this?
Answer: Commercial Refinance

Question: Has the borrower invested an additional cash into the property?
Answer: $1.5mm

Question: How is the borrower arriving at $25mm as the ARV?
Answer: 1.68 per square foot for residential on 8.5 cap

Question: What will be the unit mix after conversion (beds/baths and sqft)?
Answer: 600-1000 sqft

Question: Are you doing all the rennovations, or hiring subcontractors?
Answer: Everything will be done in house.

Question: How many floors are in the building?
Answer: 13th floor, including the basement.

Question: How long will the rehab take?
Answer: 12 months

Question: What will the future value of the property after rehab?
Answer: $28-$32mm

Question: What will rent be?
Answer: 600sqft - $1105 / 1000sqft - $1850


Question:n How much insurance are you paying on the building?
Answer: $2mm