hassansr 0 Report post Posted January 8, 2009 I have a property in the Atlanta market that I am seeking funding for 386 Pennybrook Dr, Stone Mountain , Ga, 30087 Estimated After Repair Value (ARV): $115,000 Situation: This is a property that I need funding for. It is a 3 bed, 2 bath, frame home, needing a moderate repairs of about $16k. Market rent is estimated at $1,100 per month. I expect it to take between 6 to 12 months to resale at full market value (ARV) to an owner occupant buyer. I also have the option of offering it on a lease to own basis to buyers with minor credit issues that can be repaired. Purchase price: $20,438 Est. Repairs needed are as follows: Interior paint 1,575 Carpet 2,500 HVAC 3,500 Appliances 1,000 Landscaping 500 Plumbing 2,500 Gutter repairs 1,500 Misc 1,000 Roof repairs 1,500 Total Est repairs 15,575 ------------------------------------------------------------- I am seeking funding at either of two levels: Option 1: Private credit partner for a purchase and repair hard money loan for $35,757 which will cover acquisition, rehab and their points. The credit partner will secure the hard money loan and I’ll service the debt with an additional $25,000 that I’ll secure to cover the down payment, costs of marketing, closing costs, misc expenses and holding costs for 12 months (assuming that I don’t have a lease to own buyer paying rent over that period). In return the credit partner will receive an agreed upon fee to be paid in two parts; at closing and when the property is resold. Combined debt structure will be as follows: After Repair Value $115,000 1st Position loan $ 35,727 (credit partner borrows) 2nd Position loan $ 25,000 (I secure from 3 party private lender) Total Proposed debt $60,727 Combined LTV 53% I let the private credit partner decide how much the deal is worth to them so that we can negotiate an appropriate fee. I also give another option: Option 2: Private lender will fund the deal completely at 60% LTV ($69,000), I’ll manage the entire project, repairs, marketing and resale. In return private lender will receive a 1st position mortgage deed, a certified appraisal, title insurance, property insurance, and a personally backed promissory note with the following terms: 60 month term, 10% interest only accruing payments, minimum guaranteed interest 6 months (if the house sells in less than 6 months a minimum 6 months interest is paid out; if it takes longer than 6 months normal accruing occurs). Target resale price is $115,000 with anticipated 6 – 12 month period for resale to a home buyer securing a third party mortgage loan. I market retail homes via my retail website at www.ourhomeiscalling.com. I list the property with a flat fee realtor and manage all of the marketing thru my company via, direct mail, ads, signs, flyers and networking with realtors and other loan officers. Here is the cost flow: Purchase price: 20,438 Repairs Estimated $15,575 Additional funds needed $32,987 Closing costs, Maintenance, marketing and Misc expenses Total funding needed $69,000 I have some flexibility with my terms offered. Address Sold Price bedxbath Dist 418 Sherwood Grn Jun-08 $128,000 3x3 0.11 458 Mountain Park Trl Jul-08 $100,500 3x2 0.48 5576 Pennybrook Ct Jun-08 $99,900 3x2 0.37 5612 Pennybrook Ct Oct-08 $121,500 3x2 0.35 5633 Rodney Ct Sep-08 $142,000 3x2 0.14 If you are interested in discussing this further, I can be reached at 678.683.0646 or send me a PM. Thanks Hassan Omar Share this post Link to post Share on other sites
