Tampa, FL Residential Hard Money Loan

Tampa, FL Residential Hard Money Loan Highlights

Fully remodeled 4 bedroom, 3 bathroom home in a fantasy-like location overlooking Boca Ciega Bay and downtown St. Pete in the distance. The remodel includes the bathrooms, kitchen, and two balconies providing additional access to the breathtaking views. A new paver driveway, new roof, 4 HVAC systems, and a new sea wall were also included in the remodel. An in-ground pool is to be installed in the rear yard along with new hardscape and entertaining areas.  Our loan is at 57% of the appraised value of this property.

About the Neighborhood

Sugary-white sand, dolphins frolicking just off shore and eight major barrier islands make St. Pete Beach a postcard-perfect seaside destination and home of the #1 Best Beach in the U.S. and #5 Best Beach in the World as labeled by Tripadvisor in 2021. Situated on a peninsula off Florida’s west coast, it balances its oceanfront charms with top-notch art museums, a burgeoning dining scene, and boutiques, craft galleries, and the Sunday Market.  Employment prospects are vast, diverse, and exciting. Its job market has increased recently, with job growth over the next ten years expected to be higher than the national average.  Homes are now on the market for a median of 8 days, and housing inventory is currently down 16% since last year. The lack of inventory will continue to push demand for houses up despite rising interest rates. Fortunately, St. Petersburg offers an incredibly diverse range of housing options, from rentals to homeownership, making St. Petersburg more readily accessible to prospective residents. Buyers can find many different housing options, including condos, new construction homes, and luxury homes with prices varying based on neighborhood and home style ranging from $10,000 to $15,000,000.  Renters have a diverse range of rental options, from charming condos to glamorous highrises and everything in between with rental rates between $700 and $12,000 per month.

 

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.