PROPERTY A
Crammed Castle
- Total Square Footage: 1,500 sq ft
- Usable Square Footage: 1,100 sq ft (27% loss)
- Layout: Long, narrow hallways, awkward angles, wasted space under stairs.
- Living Areas: Small bedrooms, cramped kitchen, limited storage.
- Outdoor Space: Tiny balcony barely accessible from a single room.
PROPERTY B
Smart Space Sanctuary
- Total Square Footage: 1,500 sq ft
- Usable Square Footage: 1,400 sq ft (7% loss)
- Layout: Open floor plan, efficient use of corners, minimal wasted space.
- Living Areas: Spacious bedrooms, well-equipped kitchen, ample storage in every room.
- Outdoor Space: Large balcony accessible from living room and master bedroom.
from a hard money lender’s perspective…
Property A: Red flags abound! The low usable square footage indicates inefficient layout, potentially leading to lower rentability and higher vacancy rates. The cramped living areas might deter tenants, decreasing income potential and loan security.
Property B: This is the winner! High usable square footage translates to maximized living space, attracting higher rents and reliable tenants. The efficient layout and functional amenities further boost its value and rental potential, making it a safer loan proposition.
Property B with its optimal usable square footage presents a more promising investment for both borrower and lender.
It maximizes rental income, minimizes risk, and ultimately leads to a successful loan repayment. This example demonstrates how focusing on usable square footage goes beyond mere numbers, revealing the true potential of a property and informing smart lending decisions
