All Forum Posts by: Ben Rutkevitz

Thank you Jo-Ann, I will reach out

Does anyone know of a good lender that will fund a Church?

Offering 13% interest and up to 3 points. 

Bergen - Lafayette area of Jersey City, NJ

The loan closed yesterday for $850K and is fully subscribed however I am looking to sell additional participations so I can diversify.   

Annual Interest: 13%

Origination Fee: 6%

Loan Amount:

Purchase Price: $790,000.00

Closing Costs: $20,000.00

Origination Fee: $48,600.00 (6% fee)

Total Loan Amount: $858,600.00

Term: 24 Months

Interest

Interest payments are deferred for the first 12 months. (Interest is collected on the deferred interest.) Interest is paid monthly in Year 2. Year 1 interest is repaid at the end of Year 2 along with outstanding principal.

Collateral

Loan is collateralized by the underlying property plus three additional properties owned by Borrower. The additional properties are all free and clear of liens and mortgages and are income producing.

Additional Collateral:

232 Lexington Ave, Unit 4, Jersey City, NJ 07304

244 Clendenny Ave, Unit 1, Jersey City, NJ 07304

644-646 E Elm St, Scranton, PA 18505

Estimated Value of Additional Collateral is $450,000

Estimated Value of the Subject property is $1,000,000 after renovations are complete.

Borrower Background:

Borrower is an architect with experience in renovating properties in NJ and PA. Borrower is personally guaranteeing the loan.

Rehab:

Borrower will contribute ~$100,000 to rehab the property. Renovations are cosmetic and are expected to take three months.

Exit Strategy:

Borrower plans on rehabbing the property, leasing it out and refinancing after 1-2 years. If there is a shortfall from the refinancing funds, Borrower will use its additional collateral or other personal assets to make up the shortfall.

Three family home currently set up as a four family with all separate furnaces and hot water heaters. Excellent location. Right in the center of all that is happening and new in the Bergen Lafayette area of Jersey City. Walk to the lightrail, shops, restaurants and Liberty State Park. Well appointed brick row home with very high ceilings on all levels, including the ground level. Original moldings and doorways.

Loan is structured with a SPV single purpose vehicle (LLC) loaning to the borrower and investors will have equity stake in the LLC.

Please feel free to contact me for more info on property and transaction.

As for now, the seller's internal disputes have brought the sale to a deadlock. If anything changes I will let you all know. If you have any interesting projects you would like to JV on, please let me know.

Thank you @Mansi Kothari. We are still waiting on the seller to clear up its title issues. I will update the group as soon as its available to view.

@Emmanuel Lopez we are still waiting on the seller. I will update everyone on this thread once title is clear and we have easy access to the property.

Yes it is still available but we are on hold because the seller is having issues providing a clear title policy. Please stay tuned and I will update this thread when we are a go.

My business partner is now willing to let go of the property for $450,000. Please let me know if you have any interested parties.

Hi @Christine Johanns. I know Zillow shows it as a single family, but it is a 2 family.

Hi Shailendra,

Time is of the essence. We are looking to get a commitment from a buyer ASAP. Obviously cash closings or hard money are preferred although we may consider allowing a mortgage contingency.