Loan Amount * $800,000
Collateral Valuation: * 3,300,000
Term * 12 months, First Lien, IO
Rate * 9.50%
Opportunity to renovate during COVID shutdown makes occupancy difficult for hospitality industry.
Cost overruns on a major remodel caused our borrowers to need financing. The cleanup and construction cost were nearly double the planned amount. Although over budget, the partners are still happy with the motel and contractor’s work. They will exit our loan with a bank refinance.