Texas Hard Money Deal - Close

727

2 deals

Yes

Houston

Texas

$5,700,000

$5,300,000

$26,000,000

LOAN REQUEST SUMMARY:
• Loan Amount Requested: $11,000,000
• Property Classification/Type (Residential or Commercial?): Residential
• Property Description:
• IF RESIDENTIAL: # of beds/# of baths/sq footage, lot size, garage? Year built? 28-Unit Condominium Project.
• IF A REFINANCE: List amount of debt to be paid off with new loan requested: $5,633,771.
• IF A REFINANCE: Amount of loan fees/ interest reserves requested in addition to base loan amount: Balance of construction, loan fees, and closing costs.
• IF REFINANCE: When purchased? January 2023
• List amount of repairs or rehab (If not applicable, please put, n/a): N/A
• Value: (based on?) $26,000,000 appraisal dated 8/2022.
• Current lien(s) if not applicable please put, n/a: $5,633,771.
• Loan Term Requested (How long do you need a loan for?): 24-Months
• Exit Strategy (How do you plan to pay the loan off?): Refinance after construction.
• Use of funds: (Please provide brief breakdown of the loan needs): Funds will be used to refinance the current mortgage, pay loan fees, and closing costs.
• How soon needed by: (Is there a contract date we should know about?) As soon as possible.
• Occupancy of Subject Property (owner-occupied, non-owner occupied, investment property): Investment Property
• Gross Rental Income: (If not applicable, please put n/a): N/A.
• Photos of Subject Property (Please include if available): Please see attached appraisal
• Approximate credit score: 725
• Completed projects/real estate transactions in the past three years: 2
• Current number of projects going and what kind (flips/rentals/etc:): 1
• Approximate cash reserves at this time: $743,776
• Referred By? (Who referred you or how did you find out about us?): N/A
Loan Request
A 28-unit condo project currently under construction in Houston, TX. The property was purchased out of receivership in 2023 after the previous owner defaulted on numerous projects in the Houston area. Acquired the property for $3,200,000, and subsequently secured a construction loan with Builders Capital to complete the project.

Since restarting construction with Builders Capital, the Borrower has experienced delays in receiving draw requests of up to 6-weeks causing him to pay construction invoices out of pocket in the amount of $800,000. In addition to the delayed payment of draw requests they are often shortened due to the lender’s internal budget template reconfiguration.
These issues have caused the Borrower concerned that the current lender may not be financially secure to complete the project.
Borrower is requesting a refinance in the amount of $11,000,000. The funds will be used to refinance the existing loan with Builders Capital, complete construction, provide interest reserve, and pay all closings costs.
The project is 55% complete. The primary source of repayment is the sell of the condo units; however, the Borrower is aware that he may be required to refinance the project once construction is completed.

The as-completed value of the project is estimated at $26,000,000, which provides substantial equity to support the request.

Guarantor has provided a personal financial statement displaying cash on hand in the amount of $743K and total net worth of $10,429,169, which is made up largely of his real estate holdings.