With Amazon HQ moving to Washington DC in the near future, real estate speculators have once again turned their attention to the DC metro area. There are many reasons why DC is a great place for millennials in particular, from new job opportunities to safe neighborhoods and excellent school districts. According to the Huffington Post young adults between the ages of 25-34 have been moving to Washington DC more than any other city in the US. The Wall Street Journal also reported that between 2010 and 2012 the metro Washington area – which includes suburbs in Maryland and Virginia – saw an average annual net gain of 12,583 people from the millennial generation.

Sharestates has recently funded properties in DC, the southern part of Maryland and the northern counties of Virginia. One property that Sharestates recently funded was a private loan on a mixed-use building with 2 residential units and 1 commercial unit that is located in the Capital Hill neighborhood of Washington DC. The specific area is historically known as Lincoln Square and has the largest urban park also in the Capital Hill neighborhood called Lincoln Park. Some information about this property:

  • Appraised value: $3,200,000
  • Loan amount: $2,560,000
  • Purchase Price: $3,200,000
  • LTV: 61%
  • After-repair value: $3,225,000
  • ARV: 57%

 

 

 

 

Another property funded by Sharestates is located in the beautiful town of Potomac Maryland and is considered a commuter town to Washington DC. It is located approximately 13 miles from DC and on average takes about 35 minutes to drive without traffic. Potomac MD is also one of the richest towns in the US ranked by Forbes.com. The property was an investment for a private loan on a residential property. The borrower acquired the property as a “fix & flip” and once rehab is complete will put property on the market to sell. Here is some information about this property:

 

  • Appraised value: $1,470,500
  • Loan amount: $1,100,000
  • LTV: 75%
  • Purchase Price: $1,500,000
  • LTC: 73%

 

 

To read about more loans Sharestates’ has funded or to get information on how to get funding for your next real estate investment.

Real estate developers, property rehabilitation professionals, and landlords all have one thing in common. At some point, they’re going to need outside funding for a project. For many such real estate professionals, a bank is not an option.

The biggest problem with banks for real estate investors is that many banks won’t fund their project. Banks typically have stringent loan application requirements. If you get approved for a loan, you’ll end up in a 20- or 30-year mortgage contract. That means you’ll be tethered to the bank for a long time. Marketplace lending, however, offers a reasonable alternative that won’t keep your assets tied up long-term or keep you tied to a creditor for very long.

Why The Marketplace Lending Option is Attractive

Marketplace lending offers several benefits that real estate investors can’t get at a bank. Here are a few to consider:

  1. You borrow from a pool of financiers – With marketplace lending, you aren’t tied to one lender for a long period of time. Marketplace lending platforms like Sharestates take money from a pool of investors who believe in your project and want you to succeed.
  2. No long-term agreement – Marketplace loans also tend to be short-term, bridge financing solutions. You can fund a project on a six or twelve month amortization schedule, which allows you to pursue other projects and secure more funding for those projects while you complete your project and pay back your loan.
  3. Fewer hoops to jump through – Not all marketplace lending platforms require a credit check. Those that do don’t rely entirely on your FICO score to approve your loan. If you can guarantee your funding by proving you have the means to pay it back should your project go south, a marketplace lending platform is likely to give you the nod before a bank will.
  4. You can fund more than one project at a time – Banks are very concerned about borrowers’ leverage in the marketplace. While marketplace lenders care about that too, if you can prove you have the means to offer returns on the investment for your backers, you have a better chance at getting the funding you need from a marketplace lender.
  5. You can access your funds more quickly – The loan processing time at a bank is very slow. It could be weeks before you get your hands on the money you need to complete a project. With marketplace lending, once approved, your funding arrives quickly. That means you can turn your property around quicker, pay back your loan, and fund another project.
  6. You can finance smaller projects – Another benefit to going through a marketplace lender is you can secure funding for a small project. Many banks have minimum loan limits. If you want to fund a project below that limit, they won’t approve your loan.
  7. Marketplace lending is more flexible – Many marketplace lending platforms don’t just provide loans. If it makes more sense to structure your real estate project as an equity offer, then you can offer investors a return on their investment without taking out a loan that you have to pay back. Banks don’t offer that option, and if you find one that does, it will cost you to set it up.

Marketplace lending is a great option for real estate developers and other investors who appreciate quick funding at fair prices that won’t lock you into long-term contracts. Consider your options before you decide on a funding source, and make sure to due your due diligence on the lender and their underwriting criteria.

Non-Performing loans are loans where the borrower is at least 90 days past due in making a payment and not likely to get caught up or make additional        payments on the loan. For banks, these loans have traditionally been a problem because they represent a higher default rate and lowers the profit margin of the bank on its lending practices. Of course, lending institutions in general always account for such losses and write them into their interest rates to ensure that their total lending portfolios are in the positive regarding returns. Banks have learned to sell these loans on a secondary market at a discount allowing the assignee the right to collect on the loan, if possible.

Non-Performing loans can be a problem for any type of lender, not just banks. That includes real estate crowdfunding platforms. Such loans may be a bane to the lender, but they represent a unique opportunity for investors.

The Risks of Financing Non-Performing Loans

One of the most obvious risks of financing Non-Performing loans is the failure to collect. For the original lender, selling the loan at a discount can get it off its books, and the lender can recoup some of its investment without taking a total loss. However, the loan’s purchaser then assumes the burden of collection, which can be costly and is inherently risky.

Not only is it risky to purchase a Non-Performing loan in terms of its cost to the buyer, but there are also costs associated with collecting. It can take considerable resources to chase down a borrower and convince that borrower to pay off a loan.

In terms of financing real estate Non-Performing loans, if the property is a multifamily property, the loan purchaser could be getting a property where the majority of tenants aren’t paying their rent. In that case, not only is the loan Non-Performing, but the underlying asset is Non-Performing and represents a huge liability.

Rewards Associated With Buying Real Estate Non-Performing Loans

While investing in Non-Performing loans is inherently risky, there are rewards associated with these loans that are unique to the Non-Performing loan market as a whole.

  1. First, Non-Performing loans can be purchased at huge discounts. Let’s say a loan of $100,000 was made but only $25,000 has been paid back. That $75,000 in unpaid principal is a huge liability to the lending institution. An investor that buys that loan at 50% is now sitting on a potential substantial return on investment.
  2. Investing in Non-Performing loans puts you in the first lien position. That means you get paid first should the borrower decide to continue making payments.
  3. When you buy a Non-Performing real estate loan, you control the underlying asset. In other words, if you never receive a payment for the discounted loan you purchased, you can foreclose on and sell the property for its true value recouping your investment and a nice return in the process.
  4. As financier of a Non-Performing loan, you have the option of renegotiating with the borrower and setting new terms on the loan. You can offer better terms to the borrower based on their current financial situation and turn your investment into recurring passive income.

Non-Performing real estate loans are a huge opportunity for investors who are serious about turning a discounted asset into a positive ROI and potentially a passive income that will keep your returns flowing in for years to come.

Here at Sharestates we offer Non-Performing loans as one of our programs. Click on the button below and read about what we offer.

Commercial real estate development continues to be a solid investment. Many developers reasonably expect returns of ten percent or more. Successful developers first discern what type of financing their projects need based on liquidity, development scale, and how much stake they retain in each project. There are at least four different avenues of financing available to commercial developers. Each avenue has its pros and cons, and this brief overview should give you a better idea which option might be the best fit for you. Here are four different types of financing available to today’s commercial real estate developer.

Bank Loans

Bank loans typically offer lower rates than other types of loans. The use of traditional qualifications lowers the risk of default for the borrower because it is a recognized system that motivates the borrower to maintain a solid credit standing. Since loans are long term, they are often extended to 20 years or more allowing the developer to pay them off over time while maintaining some liquid assets for future developments. While there are solid benefits to obtaining a bank loan for commercial real estate development, there are some drawbacks. Banks are more rigid when it comes to down payment, income verification, and credit score requirements, and they often won’t approve loans for non-conforming product types. The approval process for bank loans is also longer. Some loans can take up to three months for approval, and banks have high prepayment penalties

Hard Money Loans

The primary benefit to hard money loans is the speed at which they can be processed—sometimes in as little as a day. This is due to fewer eligibility requirements, which don’t extend far beyond the amount of equity the borrower has in the property and the borrower’s cash on hand. Private lenders provide money to investors on projects that banks and other traditional lenders won’t finance, such as fix-and-flip projects. Interest rates are higher on hard money loans. This is due to the risk factors to the lender and the convenience to the borrower. Private lenders usually charge points—a percent of the loan amount—to be paid prior to the first payment installment. The average is two to four points per loan. The heightened risk to the lender dictates shorter loan terms, which typically don’t extend for more than two years

Equity Offers

The beauty of equity offers is that developers can get financing for their commercial real estate developments without taking out a loan. That means there is nothing to pay back, but it also means the developer must give up partial ownership of the project to investors. That results in sharing profits with investors on the back end when the property sells or, if it is a rental or lease property, sharing in the ongoing receivables. If the project fails, the developer’s reputation with investors could take a hit. Some private investors will likely see him as a bigger risk on future developments

Marketplace Loans

Marketplace loans offer commercial real estate developers a fast and easy application process, and there are usually no prepayment penalties. On the flip side, the borrower could be subject to higher interest rates if they do not have a good credit history or lack experience in commercial development. One downside could also be seen as a positive. Marketplace loans tend not to exceed $40,000, which means larger projects have to go elsewhere. However, smaller projects can get the funding they can’t get elsewhere.

Conclusion

Commercial real estate development continues to be a lucrative financial space, and developers stand to gain their greatest profits by knowing which of the available financial options fit their goals. With thorough due diligence, developers can value each of the options and choose the one that is best for each real estate project.

As we’ve written recently, the New Jersey real estate market is booming with activity right now. Northern New Jersey, in particular has become a center of development due to its close to proximity to Manhattan. From Millenials looking for a starter apartment, to Gen Xers looking for more space, to Baby Boomers looking to downsize, northern NJ represents an affordable option to what can be found on the other side of the Hudson River. Sharestates has cultivated relationships with New Jersey real estate developers over the years and has funded many projects from ground-up construction to fix-and-flip renovation projects.

 

 

Sharestates Real Estate Activity in Northern New Jersey

  • Sharestates has funded 524 Northern New Jersey loans to date for a total funded volume of $281,425,450
  • 354 of the loans funded were for residential properties
  • 13 of the loans funded were for mixed-use properties
  • 89 of the loans funded were for multi-family properties
  • 43 of the loans funded were for commercial properties
  • 25 of the loans funded were for land deals
  • Average loan size: $900,625
  • Average loan to value (LTV): 65%
  • Average renovation budget: $341,684
  • Average after repair value (ARV): 53% or $2,047879

Residential Project Success Stories

The first residential project presented below successfully underwent construction for 2 individual units. The borrower intends to complete the build out and sell the property once construction is complete or refinance into a conventional loan. This was ground up construction from a parcel of land. The borrower structured the loan into two draws of capital over the course of the construction period, which included flooring, electrical, plumbing, HVAC, windows, doors, cabinetry, tiles, bathroom fixtures and more.

  • Appraised value: $100,000
  • Loan amount: $190,000
  • LTV: 70%
  • After-repair value: $350,000
  • ARV: 54%

This residential property is located in Paterson,New Jersey. The town of Paterson is in Passaic county which is considered a part of the New York metropolitan area. This area is about 21 miles outside of Midtown Manhattan and has a median home value of $241,000. The median list price per square foot in Paterson is $127, which is significantly lower than the New York-Newark-Jersey City Metro average of $272.

Pre-construction appearance

Post-construction appearance

The next project success story funded by Sharestates was an  8-unit residential/1-unit commercial property.The borrower previously acquired and recently renovated the property. The borrower intends to refinance the property, pull out equity and pursue new opportunities after completion. The property is now fully occupied with tenants and the apartments have been fully renovated.

  • Appraised value: $950,000
  • Loan amount: $848,000
  • LTV: 79%
  • After-repair value: $1,260,000
  • ARV: 67%

The multi-use building is located in Union City, New Jersey. This city is located in Hudson County, bordering Hoboken and Jersey City. The commute into NYC’s Port Authority is an average of 20 minutes. A current surge of houses have been sold to Millennials who are making their way there. According to Zillow.com the median home value is $407,000 and home values have gone up over 15% in the past year. Zillow predicts they will rise 7.9% in the next year.

If you have a project that you would like to submit to Sharestates for consideration, click here. Sharestates is now funding loans in 46 states Nationwide.

Pre-construction appearance

Post-construction appearance

real estate developmentThere are almost as many ways to develop real estate as there are real estate developers, but it’s important to understand that the market does move in cycles. Today, one type of real estate development could be more popular, or more profitable, than another. Tomorrow, or next year, it could be something else. For that reason, real estate developers need a way to discover what is hot in real estate and where the most profitable opportunities are.

The following list of resources is not exhaustive, but this should get you started in learning where to find the best real estate opportunities right now:

U.S. Census Bureau – The U.S. Census Bureau is a bevy of useful information to real estate developers at any stage of their career. The federal government has statistics on new residential housing starts, building permits obtained, construction spending, and much more. These statistics are available on a national as well as on a local/regional basis. While the information is great information to know, strong indicators of capital expenditure growth and new housing starts does not necessarily mean that’s where the market is going. Huge supply does not mean huge demand, but knowing the trends in new construction development is essential.

Multiple Listing Service (MLS) – The MLS is a tool for real estate agents, but it has local property information that can assist developers in predicting where the market is headed. For instance, you can use the “days on market” metric to judge a slow down in the local market. A lot of properties staying on the market longer means there are fewer people buying homes in that specific local area. A lot of homes selling faster could mean home prices are too low or there is a lot of competition among home sellers, which could indicate a low-supply condition. There are a myriad of ways to read MLS data to glean trends in residential, commercial, and industrial real estate. It’s a valuable resource.The Bureau of Labor StatisticsThe Bureau of Labor Statistics compiles information on occupation trends, unemployment, and other key employment indicators. These are important because a big rise in unemployment could mean a lower demand in new housing starts, especially if people are unemployed for a long period of time. On the other hand, a rise in executive or management level occupations in a particular metro area could spell an opportunity for new residential homes. A rise in retail occupations could mean more commercial real estate opportunities while an increase in manufacturing might spell opportunities in industrial development.

Urban Land Institute (ULI)ULI is one of the most important organizations for keeping tabs on real estate development trends around the world. They are instrumental in impacting land use policies, keep an eye on real estate development trends, and foster real estate development innovation.

The U.S. FedThe Federal Reserve publishes the most comprehensive information on economic indicators available. They also establish monetary policy, which impacts interest rates, real estate prices, and many other economic indicators.

Real estate developers must keep an eye on trends from within the real estate sector as well as trends outside of real estate that could have an impact on real estate markets. Understanding how key economic indicators could impact specific real estate sectors such as single-family residential, multifamily, commercial, and industrial is crucial. Real estate developers also should understand how to determine whether the trend is upward for new construction versus rehabilitation and renovation. Being able to read the signs of the markets will mean more profits in your pocket in the long run. Even watching the latest trends in real estate crowdfunding can help developers identify the best opportunities right now and in the future.

Are you looking to fund your next development project? Learn more about Sharestates many loan programs. https://www.sharestates.com/sponsors 

Industrial PropertiesOne of the most interesting real estate investing sectors is the industrial sector, especially in this age of rapidly growing global e-commerce. Amazon has over 100 fulfillment centers in the United States alone. For a store that sells merchandise online only, that’s a lot of real estate. Another online retailer, Overstock.com, recently announced it was opening a 517,000-square-foot warehouse in Kansas City, Kansas. Industrial real estate for e-commerce is a growing sector with a lot of opportunities for serious real estate investors.

But e-commerce is not the only business sector where industrial real estate investing opportunities occur. The question for today’s investor is, does it make sense to incorporate industrial real estate into your portfolio?

The Industrial Real Estate Market in 2018

Diversification is very important for any investment portfolio. That usually entails a good mix of assets in multiple asset classes, but investors must still perform their due diligence to pick the best investments within those asset classes. For real estate, the market in 2018 looks good for the industrial sector.

For the most part, rent growth is positive. According to JLL, the Class A market is burning hot, or it was in the second quarter at least. The Class B and C markets are much more competitive. Vacancies are stable and at an all-time low. The signals show that industrial rentals are strong.

The market is also looking good for new construction. Up by 3.7 from Q1 2018, investors looking for opportunities in the industrial real estate sector should be able to find them quite easily.

Factors Driving the Industrial Real Estate Market

According to Reonomy, industrial real estate demand currently outweighs supply, but supply is closing in. There was 35 million square feet of new industrial real estate constructed in Q1 this year, with 42 million square feet set for later development. Investors should consider these trends before making any major investment decisions.

As mentioned earlier, the growth of e-commerce is driving industrial development all around the world. In 2017, online sales accounted for 9% of all retail sales. That figure is expected to increase to 12.4% by 2020. You can bet it won’t stop there.

As companies like Amazon and Overstock expand their product offerings and expand geographically, they will continue to build out distribution and fulfillment centers. In January this year, Amazon opened its first brick-and-mortar grocery story, Amazon Go, in Seattle, Washington and is planning a second store this fall. Geekwire reports Amazon has almost 600 brick-and-mortar retail locations, including bookstores, pop-up stores, and package pick-up locations. While these storefronts fall more into the retail real estate category, retail stores are fed from distribution centers, which are classified as industrial. As e-commerce expands, and that includes smaller online merchants who will need to fulfill physical product orders, there will be a higher demand for fulfillment and distribution centers to meet the demand for these products.

Industrial real estate investment includes various considerations regarding distribution, storage, warehousing, manufacturing, assembly, production, and more across various industries. For that reason, real estate investors should perform thorough own diligence and consult a financial advisor before making any major investment decisions.

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Recently Funded Sharestates Industrial Loan

Warehouse Facility in Salem, New Jersey

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Recently Funded Sharestates Industrial Loan

Office and Retail Facility in Toms River, New Jersey

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Recently Funded Sharestates Industrial Loan

Warehouse Facility in Baltimore, Maryland

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Recently Funded Sharestates Industrial Loan

Warehouse Facility in Newark, New Jersey

new york fix and flipAs we’ve written recently, the New York real estate market is competitive yet ripe with opportunity. Sharestates was founded in the New York metro area and has completed a lot of deals here. We’ve funded everything from ground-up new construction to residential fix-and-flip projects. Year-over-year, Sharestates deal activity has increased by 28% in New York during the period from January through September.

Sharestates Real Estate Activity in New York

 

  • Sharestates has funded 694 New York loans to date for a total funded volume of $705,211,500
  • 434 of the loans funded were for residential properties
  • 6 of the loans funded were for mixed-use properties
  • 155 of the loans funded were for multi-family properties
  • 90 of the loans funded were for commercial properties
  • 9 of the loans funded were for land deals
  • Average loan size: $1,017,621.21
  • Average loan to value (LTV): 67%
  • Average renovation budget: $1,009,558
  • Average after repair value (ARV): 54% or $2,807,890

Residential Project Success Stories

The first residential project presented below successfully underwent a renovation project covering four individual units. The borrower acquired the property with the intent to “fix and flip” the units. The borrower structured their loan to receive five individual draws of capital over the course of the renovation project which included demolition, flooring, electrical, plumbing, HVAC, windows, doors, cabinetry, tiles, bathroom fixtures and more.

  • Appraised value: $1,300,000
  • loan amount: $1,080,000
  • LTV: 62%
  • After-repair value: $2,000,000
  • ARV: 54%

This residential property is located in the Bedford-Stuyvesant neighborhood of Brooklyn, NY. Bedford-Stuyvesant or “Bed-Stuy” is well known for its picturesque Victorian architecture, elegant brownstones and vibrant culture. The area is also noted for its proximity to many different New York City public transportation options which is ideal for commuters who work in the city’s central business districts. According to StreetEasy, the median sale price in Bedford-Stuyvesant is $716,000  with an average of 84 days on the market and a median rent price of $2,300. Compared to other brownstone Brooklyn neighborhoods, such as Park Slope with a median recorded sales price of $1,405,000, Bed-Stuy contains many value-add opportunities for real estate developers.

Pre-construction exterior appearance
Post construction exterior appearance
Pre-construction interior bathroom unit
Post construction interior bathroom unit
Pre-construction interior kitchen unit
Post construction interior kitchen unit

The next project success story funded by Sharestates was a 1-unit residential real estate loan. The borrower acquired the property with the goal to “fix and flip” the house. The borrower received $64,000 and structured the loan to include four individual draws of capital over the course of the renovation project which included everything from siding, plumbing, electrical, heating, insulation, wood floors, cabinetry, ceramic tiles, bathroom accessories and more.

The single-family home is located in Hempstead, New York. Hempstead is the oldest and largest town of Nassau County in Long Island, New York. The Nassau County area is immediately east of New York City and has often been known as a white collar commuter area with an average commute of only 48 minutes by Long Island Railroad. According to Realtor.com the average list price for a home in Nassau County is $598,000 and the average days on the market total 112.

  • Appraised value: $150,000
  • Loan amount: $184,000
  • LTV: 80%
  • After-repair value: $350,000
  • ARV: 53%

If you have a project that you would like to submit to Sharestates for consideration, click here. Sharestates is now funding loans in 46 states Nationwide.

Pre-construction appearance
Post construction appearance

Like all types of real estate investing, multifamily real estate development moves in cycles. When it comes to unit size and mix trends, factors are driven by market dynamics, which includes location, demographics, and size of the development. Let’s look at some of these factors.

The two largest living generations–baby boomers and millennials–represent two extreme ends of the spectrum. Boomers are aging and looking at retirement. The oldest members of this generation have already begun executing their retirement moves. That means they could be downsizing. In some cases, they’re moving from a single-family residence into a senior living or retirement community. While most grandparents aren’t raising their grandchildren, some are, and that means multifamily developments for seniors should take into consideration whether children will be involved or not.

On the other hand, many boomers are moving out of their single-family suburban homes into multifamily properties, and they’re looking at bigger apartments with nice amenities. They want apartment units with layouts similar to single-family homes, but they don’t want the responsibility of maintaining the property. Even if they downsize from a large single-family home, many baby boomers still want to live in a large apartment unit. They like the spaciousness.

By contrast, millennials are making major life decisions, such as marriage and home buying, at a later date than previous generations. Therefore, any multifamily development targeted at millennials should consider these factors, and millennials who aren’t married may be co-living or sharing space with other singles.

Multifamily developments targeting specific age demographics should consider the diversity of living arrangements you are likely to encounter and provide a unit size mix based on that diversity within your geographical market.

Development Size As It Relates to Unit Size and Mix

Large and small multifamily developments often differ in how they approach the unit size and mix. Large complexes, for instance, may sacrifice the number of units overall to include more shared amenities such as fitness centers, pet grooming stations, bicycle storage, larger recreation centers, and terraces. Upscale tenants have come to expect such amenities, so if that is your market, you should expect to build with fewer units and more shared or common spaces.

Another difference between large and small developments is in the number of bedrooms. According to Chandan Economics, 52% of large multifamily developments in 2014 had only one bedroom while 30% had two bedrooms, and only 6% had three bedrooms. Twelve percent included a studio. By contrast, smaller multifamily developments included more two- and three-bedroom units and fewer studios and single-bedroom units (44%, 9%, 7%, and 40%, respectively).

One reason for these differences could be that high-income singles prefer larger living spaces with more shared amenities, while lower-income families with more children may require more bedrooms. Interestingly, the same survey revealed that small multifamily developments increased the number of average bedrooms per unit from 1.4 to 1.6 from 2006 to 2014 while the average number of bedrooms per unit for large developments remained at 1.3 for both periods.

Other Trends Driving Multifamily development

Some senior living communities are beginning to develop properties with large front porches, two-car garages with plenty of space for shelving and storage, upscale kitchens, and open floor plans. Larger bedrooms and larger apartment spaces for seniors has developers including dens for a more comfortable living and to allow seniors more space for entertaining guests.

Multifamily developments that serve immigrant communities may want to consider how some families prefer to keep extended family closer together. That may mean more bedrooms per unit, larger bedrooms in some cases, or even larger living rooms and kitchens. When it comes to multifamily development and unit size and mix, the market dictates supply and demand.

As we’ve written recently, the Atlanta real estate market continues to show strong signs of growth. Sharestates deal activity in the Atlanta metro area, in turn, has kept apace. Multi-family projects, in particular, have kept Sharestates busy in 2018 with 125% more Atlanta loan applications than the same time last year. Below, we’ve aggregated some of our internal loan statistics for the Atlanta metro area and highlighted a few recently funded success stories.

  • Sharestates has closed 34 of those loans to date for a total funded volume of $76,465,000
  • 33 of the Atlanta real estate loans funded by Sharestates were for multi-family properties
  • The remaining loan was for a commercial storefront building
  • Average loan size: $2,248,970
  • Average loan to value (LTV): 69%
  • Average renovation budget: $655,618
  • Average after repair value (ARV): 63% or $3,226,749

Commercial Project Success Story

The Sharestates commercial success story (pictured) was for a private loan in the Cascade Heights Commercial District. Cascade Heights is a southwest neighborhood of Atlanta with many amenities that Atlanta residents look for: proximity to downtown, parks, green space, and a rich cultural history that mirrors other desirable Atlanta neighborhoods. The subject property is a 1 story commercial building with 7 storefront units and a basement accessory unit for a total of 11,842 rentable square feet.

  • As is value: $710,580
  • Preliminary loan amount: $500,000
  • LTV: 70%
  • Total loan amount: $840,000
  • After-repair value: $1,302,730
  • ARV: 64%

The borrower previously acquired the subject property and will begin to renovate with a $340,000 budget that includes: sprinkler systems, plumbing, HVAC, interior finishes, electrical, masonry, exterior siding, roof structure, exterior lighting, landscaping, grease traps, windows and doors, and grading. The borrower intends to complete the rehab plans and stabilize the investment, then refinance with traditional financing to repay this loan.

Pre-renovation commercial loan in Atlanta
Post-renovation commercial loan in Atlanta

Multi-Family Project Success Story

The Sharestates multi-family success story (pictured) was for a loan in the Hunter Hills neighborhood of Fulton County, Atlanta. Hunter Hills is west of Downtown Atlanta and consists mostly of single-family residences. The neighborhood is only feet away from the west side of the new Atlanta Beltline that will connect nearly 45 neighborhoods via railroad. The subject property is a 63 unit multi-family apartment building with an office unit. The property sits on 2.1 acres of land and is 49,776 square feet in size.

  • As is value: $2,260,000
  • Loan amount: $1,880,000
  • LTV: 70%
  • Total loan amount: $840,000
  • After-repair value: $2,835,000
  • ARV: 66%

The borrower previously acquired the subject property and will begin to renovate with a $300,000 budget. The borrower intends to complete the rehab plans and stabilize the investment, then refinance with traditional financing to repay this loan. Pictured below are some of the completed renovations to date.

Below are some additional before and after renovation photos of a recently funded Atlanta loan. If you have a project that you would like to submit to Sharestates for consideration, please click here. Sharestates is now funding loans in 46 states Nationwide.

Pre-renovation multi-family exterior loan in Atlanta

Post-renovation multi-family exterior loan in Atlanta

Pre-renovation multi-family unit kitchen

Post-renovation multi-family unit kitchen

Pre-renovation multi-family unit bathroom

Post-renovation multi-family unit bathroom

Pre-renovation multi-family unit bedroom

Post-renovation multi-family unit bedroom