Greenville Residential Hard Money Loan

Greenville Residential Hard Money Loan Highlights

This charming raised ranch is situated on a spacious 0.65-acre lot on the northern tip of Lake Saluda, offering a panoramic view of the lake complete with a dock. Step inside to discover original hardwood floors throughout, an updated galley kitchen with beautiful cabinetry, a gas range, pot filler, and stainless steel appliances. The dining room and living spaces lead to French doors and a screened patio, offering a year-round view of the lake.  The borrower is purchasing this property and using it as a rental property.  Lake rentals in this area have exploded after Covid.

About the Neighborhood

Greenville, SC is a wonderful outdoor town and place to call home. It has just about everything including lake homes near the city. One of the closest lakes to Greenville is Saluda Lake and has power boats and personal watercraft. Saluda lake is located northwest of Greenville just a few minutes from the downtown area. At 331 acres, the reservoir lake is large enough to feel like a lake, but small enough to not be crowded. There is a bait and tackle shop on the lake that also rents boats, has a snack bar and convenience items. Homes in this area are considered part of Easley, SC in Pickens County and Greenville as the lake straddles the line between the two counties. There are individual homes and homes on the lake that have been in existence since 1820. Currently subdivisions  and condos are on the lake as well. The lake impounds the Saluda River on the border of Greenville and Pickens counties. This lake provides the city of Easley in Pickens County a source of drinking water.

Why We Like This Opportunity

This is a first position mortgage with an excellent loan to value ratio of 65% with a property purchase price of $425,000.00 and a loan amount of $276,500.00.  The borrower has agreed to put down 35% as well as 6 months of interest payment up front which we will be spreading over the full 12 months.  The borrower has solid liquidity and income to make payments.  He also plans to rent the home which will help with the debt service.

Seniority

The first-priority mortgage lien position is the most senior and highest priority within the capital structure. In the event that a borrower defaults, the lien priority determines the order in which lenders are repaid. Senior lenders are always repaid first. All subordinated positions, including the amount held by the Originator and its investor syndicate, act as a buffer in the event of a deterioration in the Properties’ value.

Personal Guarantee

The Loans are personally guaranteed by the borrower, spouse, and all principals in the LLC. Additionally, the Sponsor and/or Guarantor are obligated to contribute monthly payments to maintain a tax and insurance reserve. Failure to adhere to reserve contribution requirements would lead to the triggering of a debt service and operating expense/shortfall guarantee.

Upfront Reserve

The Loan is structured with interest reserve for further protection.  12 months of debt service payments will be collected at closing.