The Madison Group closed a $1,100,000 hard money
loan with a 10.5% rate, 25 year amortization, and 5 year call.
Transaction Description:
$1.1M all cash out refinance of a special use owner occupied property in
a tertiary market. The collateral consisted
of two buildings that are located on a golf course at the base of a ski resort
in a small town. The tenants are a pro
shop for the golf course and a locally owned restaurant. The remaining space is occupied by the owner
and is used for conventions, corporate offices and kitchens for the ski resort.
Challenges:
The borrowers were in need of capitalization funds from this free and
clear owner occupied real estate in a short time frame. The owners were under
application for almost a year with a local bank, but the bank was unable to
perform the loan. The unique property
and rural area provided more challenges to finding a new lender.
Solutions: We were able to quickly get
a soft money loan of $1.1M cash out with a life insurance group. The rate was 10.5% on a 5 year note with a 25
year amortization.