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May 12, 2015 3:48 EST

Fort Lauderdale Fix and Flip – a prefunded opportunity for a Single Family Residential property in Florida

iCrowdNewswire - May 12, 2015

Fort Lauderdale Fix and Flip

2156 NE 63rd Street, Fort Lauderdale, Florida

  • 12%APR
  • $322,000Investment Offering
  • 66%ARV
  • 12MONTHSLoan Term
  • SINGLE FAMILY RESIDENTIAL
    Project Type
Investment Summary

This is a prefunded opportunity for a Single Family Residential property in Florida. The subject property address is 2156 NE 63rd Street, Fort Lauderdale, Florida.

The developer is requesting a loan of $322,000 in order to purchase and renovate the underlying property. The property was purchased for a total of $293,900 in May of 2015. There is major renovation needed for the underlying property, totaling $77,000. The borrower will receive 4 draw(s) totaling $308,476 over the course of the loan. The initial draw in the amount of $251,476 occurs when the loan closes. The second draw of $25,000 will be disbursed when renovation is started. The third draw of $20,000 will be disbursed when renovation is half complete. The fourth draw of $12,000 will be disbursed when renovation is complete. The borrower plans to sell within 1 year.

2156 NE 63rd Street

  • Purchase Price: $293,900
  • Renovation: $77,000
  • After-Rehab Value: $485,000

An independent third party appraisal commissioned by Patch of Land, shows an After Repair Value (ARV) of $485,000 for 2156 NE 63rd Street. The ARV ratio is 66.39% 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 Fort Lauderdale is stable and supply and demand are in balance.

Financial Overview
Investment Needed Minimum Investment Loan Duration APR
$322,000 $5,000 12 months 12%
Valuation
Combined Appraised ARV 66% Loan to Combined Appraised ARV $485,000
Combined Zillow As-Is Value 91% Loan to Combined Zillow As-Is $354,641
Combined Trulia As-Is Value 87% Loan to Combined Trulia As-Is $371,000
Property Overview

2156 NE 63rd Street was built in 1962, located in the suburban neighborhood of Fort Lauderdale, Florida. The property has 7 rooms including 3 bedrooms and 2 bathrooms, with a gross living area of 2,524 sq. ft. on a 7,483 sq. ft. lot. The property will remain 2,524 sq. ft. after renovations. The property is near nearby schools, shopping centers, restaurants and other public amenities.

Renovation

2156 NE 63rd Street

Property renovations are awaiting loan to start renovation and there is major renovation needed for the property. The following renovations are planned to be completed:

  • Landscaping Makeover
  • Full Kitchen Remodel
  • New Tile and Wood Floors
  • New Appliances
  • New Interior and Exterior Paint
  • New Fence
  • New Impact Windows and Doors
  • New Garage Door with Glass

Borrower

White Sands Unlimited is a real estate investing company that operates in Florida. The managing member is an experienced contractor that began his career in California 20 years ago. His knowledge of the business consists of direct experience in contracting, building and investing in residential property. He has rehabbed 15 properties in the last 4 years focusing primarily on Central and Southern California.

Structure Overview
  • 12 month hold term at 12% 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
  • 2156 NE 63rd Street: 2,524 sq ft / 7 Room / 3 Bedroom / 2 Bath Single Family Residential
  • 66.39% ARV
Capitalization

The below financial estimates are based on Patch of Land’s investment of $322,000 to the developer that will hold title to 2156 NE 63rd Street, Fort Lauderdale, Florida

The developer is contributing $66,424 in a combination of downpayment, any pre-existing contributions, and payment of closing costs. Patch of Land is contributing a $322,000 loan to purchase, renovate, and cover any additional closing costs for a total capitalization of $388,424. The amount will be issued to the borrower in 4 disbursement(s).

Purchase Price $293,900
Renovation Costs $77,000
Origination and Processing Fees $13,524
Closing Costs $4,000
Developer Contribution -$66,424
Total Costs $322,000
Valuation
Combined Appraised ARV 66% Loan to Combined Appraised ARV $485,000
Combined Zillow As-Is Value 91% Loan to Combined Zillow As-Is $354,641
Combined Trulia As-Is Value 87% Loan to Combined Trulia As-Is $371,000
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 $3,220 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 White Sands Unlimited

White Sands Unlimited is a real estate investing company that operates in Florida. The managing member is an experienced contractor that began his career in California 20 years ago. His knowledge of the business consists of direct experience in contracting, building and investing in residential property. He has rehabbed 15 properties in the last 4 years focusing primarily on Central and Southern California.

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: 3-6 month market time
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After Repair Value (ARV) 66.39%
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Borrower Track Record Successful resale portfolio of multiple properties
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Borrower Contribution $66,424
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Risks Mitigants
1. The market falls enough to remove a profit motive for the developer. 1. Fort Lauderdale, FL has shown stable growth over the past year, has a market time of 3-6 months and home values are projected to be stable over the next 12 months.

2. The property was purchased below market value.

2. Developer does not complete the project. 1. The developer will be contributing $66,424. The loan is funded at a collective 66.39% ARV. 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.

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