Address: Vero Beach, FL 32967
ARV: $2,500,000 (As-is)
Loan Amount: $700,000.00
Loan Structure: 12 Months Interest Only
Interest Rate: 12%
LTV 28%
Borrower Profile: Business Owner
Work Description: Renovation
Loan Purpose: Cash Out
Jan 19, 2024
We recently helped a borrower who had purchased a building in Vero Beach for $1.8 million with the intention of relocating his business there. However, he faced unexpected challenges from the city’s code enforcement department after completing the sale. The previous owner had not disclosed the internal violations that the city had placed on the property, which were not shown on the title. As a result, the borrower was only permitted to occupy one of the smaller buildings until the violations were resolved on the larger building. During this time, the borrower had to purchase another property to store all of his equipment until he was able to repair the building. The new owner was also unaware that the previous owner had carried out upgrades and renovations without permits or notifying the city. It was only when the new owner was moving into the property that this information came to light. To help the borrower complete the necessary renovations to meet the city’s requirements, we provided him with $700,000 at an interest rate of 12%, Interest Only for a term of 12 months, with a 12-month Interest Guarantee. The renovations and city occupancy notices are expected to be completed within the next 6-12 months
