First Capital Trust Deeds recently secured a 24-month hard money commercial loan for an auto repair shop in southern California. The borrower needed to use cash-out funds to acquire additional equipment for the business, which had been operational for five years.
One thing about finding hard money trust deed investors for former gas stations is that it’s a limited pool of lenders willing to do the loan. It takes a certain TD investor who is okay with the potential contamination pitfalls of the property to do the loan. Plus, for the borrower, they need to do a lot of legwork to get the required reports to assure a lender that the contamination has been properly handled.
Which is how this one played out with the borrower spending a lot of time and money meeting the lender’s requirements before funding the loan.
Hard Money Financing Terms:
- $250,000 Loan Amount
- 10.99% Fully-Amortized for 40 years
- 24-Month Balloon Payment
- No Prepayment Penalty