SECURED LOAN<\/span><\/strong><\/p>\nLoan against two properties:\u00a0 The use of funds for Subject property 1 is for cash out and rehab.\u00a0 This property is free and clear. The use of funds for Subject property 2 is a for the purchase and rehab of the property<\/p>\n
Loan Details<\/span><\/strong><\/p>\n\n- Loan Amount: $330,000<\/li>\n
- Term: 24 Months<\/li>\n
- Interest Rate: 12%<\/li>\n
- Monthly Payments: $3,300 \u00a0Interest Only<\/li>\n
- 6 month Interest Reserve:\u00a0 $19,872<\/li>\n<\/ul>\n
\n- Security:\u00a0 (Subject 1) Deed of Trust in 1st Position security interest in real property at xxx, Nehalem OR<\/li>\n
- Subject 1 As-Is Value by Borrower\u2019s Estimate:\u00a0 $180,000<\/li>\n
- Construction Holdback Subject 1:\u00a0 $25,515<\/li>\n
- Subject 1 Projected Value by Borrower\u2019s Estimate\/comps:\u00a0 $240,00<\/li>\n<\/ul>\n
\n- Security:\u00a0 (Subject 2) Deed of Trust in 1st<\/sup> Position in real property at yyy<\/sup>, Nehalem, OR<\/li>\n
- Subject 2 As-Is Value by Borrower\u2019s Estimate\/Tax Assessed Value: $267,000<\/li>\n
- Construction Holdback Subject 2:\u00a0 $26,618<\/li>\n
- Subject 2 Projected Value by Borrower\u2019s Estimate\/comps: $320,000<\/li>\n<\/ul>\n
\n- Combined As-Is Value by Borrower\u2019s Estimate:\u00a0 $447,777<\/li>\n
- Front End CLTV by Borrower\u2019s Estimate: 63%<\/li>\n
- Total Combined Projected Value of Subject 1 and Subject 2 by Borrower\u2019s Estimate\/comps: $560,000<\/li>\n
- Total CLTV based on Projected Value by Borrower\u2019s Estimate\/comps: 59%<\/li>\n<\/ul>\n
Loan Overview<\/span><\/strong><\/p>\nThe Borrower, xxx, under her company yyy, LLC is looking for a $330,000 loan secured by two properties.\u00a0 Subject 1 is currently free and clear with the exception of some property tax liens that will be paid at closing.\u00a0 Subject 2 is currently under contract for purchase at $161,000.\u00a0 Details on each property are provided below.<\/p>\n
xxx is an experienced rehabber, who reported to have purchased and sold 7 houses, two of which were over 100 years old.\u00a0 Furthermore, she grew up in a construction oriented family.\u00a0 Her father, brother, and nephew are roofers, and she also has contractors, concrete professionals, painters, and a plumber in the family.<\/p>\n
<\/strong><\/p>\nSubject 1<\/strong><\/p>\nxxx, under her company yyy, LLC, owns this property free and clear.\u00a0 She reports investing approximately $30,000 for improvements to the property, and is requesting $25,515 to complete the renovation.\u00a0 The budget with proposed improvements, as well as a list of completed improvements has been provided for your review.<\/p>\n
The property was built in 1954, and is 1,684 Square feet on .36 acres.\u00a0 The property has 3 bedrooms, 2 baths, and covered carport. \u00a0The property is currently vacant and in the process of being renovated.<\/p>\n
Subject 2<\/strong><\/p>\nxxx currently has this property under contract for $161,000.\u00a0 She believes this is greatly undervalued, and that the bank that owns the property doesn\u2019t know what they have.\u00a0 The current tax assessed value of this property is $267,000, which is what xxx believes to be a more realistic as-is value.\u00a0 She is requesting $26,618 for cosmetic renovations to this property.\u00a0 The budget and list of proposed improvements has been provided for your review.<\/p>\n
This property was built in 1920, and is 2,688 square feet on 1.04 acres.\u00a0 It has 6 Bedrooms, 2 bathrooms, a parlor, laundry room, 2 car garage, and 10 foot ceilings throughout the house.<\/p>\n
Exit Strategy<\/strong><\/p>\nThe borrower will exit this loan through the sale of the properties, and has requested a release clause to allow for individual sales of the property.<\/p>\n
Property \/ Valuation<\/span><\/strong><\/p>\nComps have been provided by a local realtor and were used to estimate the completion values of each property.\u00a0 These comps can be viewed through the following link: www.xxx<\/p>\n
The borrower feels that after the renovations, her properties will be just as nice as the comps, but will be superior in location.\u00a0 Ultimately, she believes that she will be able to sell Subject 1 for approximately $240,000 and Subject 2 for approximately $340,000<\/p>\n
A site visit by one of Fairfield\u2019s inspectors is scheduled for 10\/7 (pending a tentative commitment of funds) in order to evaluate the sufficiency of the borrower\u2019s construction budgets as well as evaluate the comps that she has provided.<\/p>\n
Income<\/span><\/strong><\/p>\nA signed 1003 has been provided by the borrower, who is stating a monthly income of $5,000 and a net worth of $222,000.<\/p>\n
In addition, there is 6 months of interest reserve included in this loan which will allow her to build her cash reserves.\u00a0 If she is unable to sell either of the properties within this time frame, she is confident that she\u2019ll be able to service the debt from her cash reserves and monthly income.<\/p>\n
Credit<\/span><\/strong><\/p>\nxxx has a mid-credit score of 612.\u00a0 Her credit report shows very little debt \u2013 a total of $2,632<\/p>\n
—<\/p>\n
– Clay (clay@privatemoneysource.com, 503-476-2909 or 800-971-1858)<\/p>\n
Clay is Vice President of Fairfield Financial, a primary source for private money loans since 1964.\u00a0 Fairfield works with a broad range of private money investors, in a broker capacity, finding, underwriting, presenting, closing, servicing, and when necessary, assisting in the workout of difficult loans.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"S. Clay Sparkman We\u2019ve had a lot of nice solid little loans come in lately. As you know, we have a tradition of, from time to time, presenting one of the loans that we have placed or are in the process of placing, so that blog readers can see (a) the types of loans that […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_s2mail":""},"categories":[5,13,17,18,22,1,28],"tags":[40,42,43,44,48,49,50,51,58,59,60],"_links":{"self":[{"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/677"}],"collection":[{"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=677"}],"version-history":[{"count":0,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/677\/revisions"}],"wp:attachment":[{"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=677"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=677"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=677"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}