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May 21, 2015 1:36 EST

3142 S Leyden St, Denver, Colorado: a prefunded opportunity for an investment rental property in Colorado

iCrowdNewswire - May 21, 2015

Denver, CO Purchase

3142 S Leyden St, Denver, Colorado

  • 10.25%APR
  • $324,000Investment Offering
  • 78%LTV
  • 18MONTHSLoan Term
  • SINGLE FAMILY RESIDENTIAL
    Project Type
Investment Summary

This is a prefunded opportunity for an investment rental property in Colorado. The subject property address is 3142 S Leyden St, Denver, Colorado. The underlying loan is secured by first position lien on title and a personal guaranty of the individual borrower.

The borrower requested a loan of $324,000 in order to purchase the property. The BPO value on this property is $415,000. The property was purchased for a total of $405,000 in May of 2015. The borrower contributed $89,860 towards the downpayment. There is no renovation needed for this property. This rental property has a tenant in place. The amount of the lease covers all associated expensed with the loan. The borrower plans to refinance within 18 months.

The Denver Metro area is appreciating at a 13% rate. The unemployment rate in the area is 4.2%, which is one of the lowest in the country.

3142 S Leyden St.

  • Purchase Price: $405,000
  • BPO Value: $415,000

An independent third party BPO commissioned by Patch of Land, shows an As-is BPO Value of $415,000 for 3142 S Leyden St. The LTV ratio is 78% 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 Centennial is strong.

Financial Overview
Investment Needed Minimum Investment Loan Duration APR
$324,000 $5,000 18 months 10.25%
Valuation
BPO LTV 78% Loan to Value $415,000
Zillow As-Is Value 86% Loan to Combined Zillow As-Is $377,595
Property Overview

3142 S Leyden St was built in 1962, located in the metropolitan neighborhood of Denver, Colorado. The property has 6 rooms including 3 bedrooms and 2 bathrooms, with a gross living area of 1,272 sq. ft. on a 10,846 sq. ft. lot. The property will remain 1,272 sq. ft. after renovations. The property is near major throughways, public amenities, and shopping centers and recreation.

Renovation

3142 S Leyden St

Property renovations are completed already and there is no renovation needed for the property:

 

Borrower

The managing member of 3142 South Leyden 14 LLC owns a commercial real estate acquisition company. The company owns over 84 properties in the following states: AZ, CA, CO, OR, WA, SC, OH, GA, KS, MN, TX. The properties include malls, shopping centers, and apartment buildings. The borrower has been involved in the real estate industry for 27 years and has closed $1.5 billion worth of transactions. In addition the borrower personally owns many additonal real estate assets.

Structure Overview
  • 18 month hold term at 10.25% APR, net of Patch of Land’s administrative costs.
  • Underlying loan secured by first position lien on title and personal guaranty of the individual borrower
  • 3142 S Leyden St: 1,272 sq ft / 6 Room / 3 Bedroom / 2 Bath Single Family Residential
  • 78% LTV
Capitalization

The below financial estimates are based on Patch of Land’s investment of $324,000 to the borrower who will hold title to 3142 S Leyden St, Denver, Colorado

The borrower is contributing $99,860 in a combination of downpayment, any pre-existing contributions, and payment of closing costs. Patch of Land is contributing a $324,000 loan to purchase, and cover any additional closing costs for a total capitalization of $423,860. The amount will be issued to the borrower in 1 disbursement(s).

Purchase Price $415,000
Origination and Processing Fees $4,860
Closing Costs $4,000
Borrower Contribution -$99,860
Total Costs $324,000
Valuation
BPO LTV 78% Loan to Value $415,000
Zillow As-Is Value 86% Loan to Combined Zillow As-Is $377,595
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 borrower are processed. Borrower will pay Interest only payments in the amount of approximately $2,806 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 November 2016. Distributions will be made directly into each investors Patch of Land accounts online.

The managing member of 3142 South Leyden 14 LLC owns a commercial real estate acquisition company. The company owns over 84 properties in the following states: AZ, CA, CO, OR, WA, SC, OH, GA, KS, MN, TX. The properties include malls, shopping centers, and apartment buildings. The borrower has been involved in the real estate industry for 27 years and has closed $1.5 billion worth of transactions. In addition the borrower personally owns many additonal real estate assets.

$153,000funded of $324,000

 

$5000 Minimum

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
Loan to Value 78.1% of BPO Value
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Local Market Strong
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Borrower Track Record Successful resale of multiple properties
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Borrower Contribution $89,860
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Risks Mitigants
1. The market falls enough to remove a profit motive for the borrower. 1. The Denver metro area has shown strong growth over the past year, has a market time of under 3 months and home values are projected to be strong over the next 12 months.

2. The property is being purchased under market value.

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