Structured Note: $164,500


Loan Amount: $164,500

Origination Fee: 2%

Interest Rate: 9.0%

Term: 7 years w/ balloon payment due

Amortization Type: Interest Only

Collateral: $235,000 Non-Owner Occupied Duplex located in Wilmington, 1st position loan

ROI = 15.3%


The prospect was in escrow to buy a duplex that was currently generating a gross income through rents of $2,800 a month.  Conventional financing fell through when the borrower’s previous tax return showed a one-time write off expense against another unrelated income property that harmed their debt to income ratio.  The loan was offered as a back stop solution with an exit strategy related to a new set of the most recent year’s returns showing a higher income.  The borrower refinanced into a new loan soon after.  Despite the high Loan to Value ratio, a commitment from the borrower was demonstrated by a strong down payment including a premium to the appraised value.

Posted in Capital.

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