Mixed Use rehab deal Closed!!! Cleveland OH

[Richard Huizar]

Investment Info:

Other private money loan investment.

Purchase price: $130,000
Cash invested: $215,000
Sale price: $420,000

Borrower needed funds to finish rehab for a refi. Owner/contractor will complete work and rent out then refi. Borrower pledged additional collateral for additional protection

What made you interested in investing in this type of deal?

Borrower had money invested into the project already, and was willing to pledge additional collateral to sweeten the deal.

How did you find this deal and how did you negotiate it?

HM broker brought deal to me. Negotiated deal with broker and borrower.

How did you finance this deal?

Utilized private investor funds to fund this deal. Borrower will complete each phase of the rehab before seeking reimbursement,.

How did you add value to the deal?

After repair value and use of additional collateral. This was not an easy deal to fund, even though we had a strong, experienced borrower. Borrowers willingness to pledge additional collateral sold the deal.

What was the outcome?

Closed deal and currently work in progress

[Richard Huizar]

Quote from @Nicholas Misch:

Great Deal! So when it says "Borrower will complete each phase of the rehab before seeking reimbursement" they are getting draws or they have to do the work, then get reimbursed? 

 IN this particular situation the Borrower/contractor is doing work first, showing proof of completion w photos, paid invoices and materials, and then getting reimbursed.