Cetan Funds recently funded a multi-family rehab loan in Cottage Grove, Oregon. The borrowers had purchased this 17-unit apartment complex off-market at a heavily discounted price and their original plan was to gradually rehab the units using the cashflow of the rented units for funding. Unfortunately, they hit snags with the city, and it quickly became apparent that this was a much larger project than anticipated. The entire property needed to be vacated and renovated at once.
Cetan Funds was able to help by quickly refinancing their existing debt and providing cash-out to fund the higher than expected rehab costs. This loan also included reserves to help with their cashflows while the property was vacant and under construction, and an option to extend the loan and potentially drop the interest rate once the rehab was done and most of the units were occupied. Renovations have finally started back up, and everyone is eager to see the finished product.
These borrowers are excited to add significant value to this property sooner than they originally planned. This community needs decent, affordable housing. Cetan Funds is proud to be a funding partner on a project that will help provide exactly that.
Loan Purpose
Location
Cottage Grove, Lane County, Oregon
Loan Terms
$1,303,500 at 10.5% interest only for 18 months
