This is what we are asking for:

Loan amount: $50,000

Property Value: $125,000 (at least)

LTV: 40%

Position: 1st lien position

Term: 180 days with no prepayment penalty

Interest Rate: 10%

Credit: ~620 FICO; no foreclosures or shortsales

Exit strategy: Payoff in full with full reconveyance with investment capital coming in for project in approximately 90-120 days or less.

We acquired the property for all cash for $125,000 in May of 2021. We are in the process of getting plans and permits completed and will begin our main phase of rehabilitating the property in the next 90 -120 days when funds are initiated by our investor for the project. In the meantime we need to utilize some capital by accessing the equity in our building. The property is a 33,000SF brick building on almost 3 acres of land.

It is a very simple deal. We own it free and clear. We bought it for $125,000 but previously assessed value had it at $400,000. At $50,000 the LTV based on our purchase price alone is 40%, so the loan is well securitized against the property.