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May 11, 2015 10:59 EST

Essex County Fourplex Refi – a prefunded opportunity for a Multi-Family Residential property in New Jersey

iCrowdNewswire - May 11, 2015

Essex County Fourplex Refi

174-176 Vermont Ave, Newark, New Jersey

  • 11%APR
  • $160,000Investment Offering
  • 59%LTV
  • 12MONTHSLoan Term
  • MULTI-FAMILY RESIDENTIAL
    Project Type
Investment Summary

This is a prefunded opportunity for a Multi-Family Residential property in New Jersey. The subject property address is 174-176 Vermont Ave, Newark, New Jersey.

The borrower is requesting a loan of $160,000 in order to refinance the underlying property. There is no renovation needed and the property is currently 100% occupied generating $5,200 per month of rental income. The borrower will receive $153,200 at closing. The borrower plans to refinance within 1 year.

An independent third party appraisal commissioned by Patch of Land, shows an as-is value of $270,000. The LTV ratio is 59.26% and is in line with the data we found during our due diligence process. Our research shows the residential market surrounding the underlying property in this area of Newark is stable and supply and demand are in balance.

Financial Overview
Investment Needed Minimum Investment Loan Duration APR
$160,000 $5,000 12 months 11%
Valuation
Combined Appraised LTV 59% Loan to Combined Appraised LTV $270,000
Property Overview

174-176 Vermont Ave was built in 1925, located in the metropolitan neighborhood of Newark, New Jersey. The property has 20 rooms including 10 bedrooms and 5 bathrooms, with a gross living area of 4,439 sq. ft. on a 5,000 sq. ft. lot. The property is near Vailsburg Park, religious centers, schools, public amenities, shopping centers and recreation.

Renovation

174-176 Vermont Ave

Property renovations have already been completed. The following renovations have been completed:

  • New energy efficient furnace
  • New roof
  • New laminated wood flooring
  • New appliances for all units

 

Borrower

Premiere Investments is a real estate investment company that operates in the state of New Jersey. The managing member is also the partner of a full service real estate management and development firm based out of Springfield, NJ. She has disposed of 10 properties in the last 18 years. Her investment strategy is to buy, rehab, and hold for rental income. She would only sell when the market is ripe and a strong opportunity presents itself.

Structure Overview
  • 12 month hold term at 11% APR, net of Patch of Land’s administrative costs.
  • Underlying loan secured by first position lien on title and personal guaranty of the individual developer
  • 174-176 Vermont Ave: 4,439 sq ft / 20 Room / 10 Bedroom / 5 Bath Multi-Family Residential
  • 59.26% LTV
Capitalization

The below financial estimates are based on Patch of Land’s investment of $160,000 to the borrower that will hold title to 174-176 Vermont Ave, Newark, New Jersey

Patch of Land is contributing a $160,000 loan to refinance and the borrower will cover any additional closing costs. The amount will be issued to the borrower in 1 disbursement(s). The borrower contribution is comprised of current borrower equity, closing costs, origination, and processing fees.

As-Is Value $270,000
Origination and Processing Fees $6,800
Closing Costs $4,000
Borrower Contribution -$120,800
Total Costs $160,000
Valuation
Combined Appraised LTV 59% Loan to Combined Appraised LTV $270,000
Distributions

Interest will begin to accrue at the date each investors funds clear escrow.

Distributions of Interest only will be paid Monthly as loan payments from the Developer are processed. Borrower will pay Interest only payments in the amount of approximately $1,466.67 to Patch of Land which will in turn be distributed to you as an Investor Monthly at your fractional investment amount.

Total repayment of capital is expected on or before the end of April 2016. Distributions will be made directly into each investors Patch of Land accounts online.

About Premiere Investments

Premiere Investments is a real estate investment company that operates in the state of New Jersey. The managing member is also the partner of a full service real estate management and development firm based out of Springfield, NJ. She has disposed of 10 properties in the last 18 years. Her investment strategy is to buy, rehab, and hold for rental income. She would only sell when the market is ripe and a strong opportunity presents itself.

Risk Profile

Monitoring the risk factors in your portfolio is an important part of the due diligence process. As such, Patch of Land has created a proprietary risk profile for your review. In keeping with our policy of absolute transparency, we’re showing you the same risks, mitigants, and high level risk factors that play into our decision-making process.

This information is obtained from sources which we, and our suppliers, believe reliable, but we do not warrant or guarantee the accuracy of this information. To the maximum extent permitted by law, we and our suppliers disclaim any and all liability in the event any information proves to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

Risk Subject   Low / Medium / High
Local Market Stable
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Loan to Value (LTV) 59.26%
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Borrower Track Record Successful resale portfolio of multiple properties
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Borrower Contribution $120,800
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Risks Mitigants
1. The market falls enough to impact rental income. 1. Newark, NJ has shown stable growth over the past year, and home values are projected to be stable over the next 12 months.
2. The borrower fails to refinance within 1 year.

1. The borrower has contributed $120,800. The loan is funded at 59.26% LTV. This allows for a reasonable expectation of recovery of capital in a liquidation scenario.

2. The underlying note issued by Lender is secured by a personal guaranty from an experienced real estate professional.

3rd Party Info
174-176 Vermont Ave

174-176 Vermont Ave
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