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
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.
Investment Needed | Minimum Investment | Loan Duration | APR |
$322,000 | $5,000 | 12 months | 12% |
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 |
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.
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:
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.
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 |
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 |
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.
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.
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 | |
After Repair Value (ARV) | 66.39% | |
Borrower Track Record | Successful resale portfolio of multiple properties | |
Borrower Contribution | $66,424 |
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. |