Oregon Hard Money Deal - Close

649

1 deal

Oregon

Borrower lives on an 85 Acre property, comprised of 2 parcels, which is being used as a farm and a metal recycling business. There is a 3,123 SF house, including the SF in the finished basement, on the property, plus 10 industrial and farm buildings ranging in size from a small pumphouse up to 13,440 SF. The property is owned by the present lender, because the lender required the borrower to sell the property to lender in order to close the loan. Borrower needs the loan in order to buy back the property and pay a few debts. The borrower is actually a foundation which does not have to report income to the IRS. The trustee of the foundation provided a Profit and Loss Statement for 2019, which showed an average net income of $17,789/month. The trustee stated that the borrower is willing to personally guarantee this loan. Even though the trustee's personal residence is located on the subject property, I have heard that there is an exemption from the Dodd Frank regulations if the property is a business use property and if the loan is for primarily business or agricultural purposes, which it clearly is.