| Borrower | Multifamily investor |
| Property | 56 units across 7 buildings, mid-rehab |
| Location | Georgia |
| Value | ~$6M as-is, ~$9M after repairs |
| Request | $3.4M to pay off a $2M hard money loan and finish $1.3M of rehab |
| Product | Bridge loan with rehab holdback |
The problem
The owner's hard money loan was coming due with the rehab only partly done, and liquidity was thin.
Why the loan came in smaller
The lender didn't size off the $6M value. It sized off cost basis: about $2.47M purchase plus a $2.1M budget. That cut the loan from $3.4M to $3.0M.
The terms (as quoted;)
- $3.0M total: ~$1.6M at closing, $1.3M rehab holdback, $100K interest reserve
- 12.75%, 18 months
- 50% of as-is value, 33% of after-repair value
- 1.5 lender points, full recourse
What this means for you
On transitional properties, know whether your lender sizes on value or on cost before you count on the proceeds.
In a similar spot? Get soft numbers on your deal
Why this deal was hard
Each one links to a full guide on how it gets solved.
Anonymized; amounts may be rounded. Terms as issued by the lender.