Denver Buy & Hold
This is a prefunded purchase only opportunity for a Single Family Residential property in Colorado. The subject property address is 3675 S Hibiscus Way, Denver, Colorado.
The developer is requesting a loan of $333,750 in order to purchase the underlying property. The property was purchased for a total of $460,000 in July of 2015. There is no renovation needed for the property. The borrower will receive $333,750 at closing of the loan. The borrower plans to refinance in one year or under. The property is currently for lease at $2,700 per month.
3675 S Hibiscus Way
- Purchase Price: $460,000
- As-Is BPO Value: $450,000
An independent third party BPO commissioned by Patch of Land, shows an As-Is Value of $450,000 for 3675 S Hibiscus Way. The LTV ratio is 74.17% 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 Denver is strong.
This Borrower is acquiring a portfolio of houses in the Denver Metro area. The borrower has decided to use Patch of Land for the purchases due to our speed in acquiring the loan. The borrower is an experienced real estate veteran who will be exiting our loans and placing all of these properties in a blanket (a large loan with a conventional bank, with 5% or less as the rate.) These purchases are for long-term investment, so the borrower is willing to supplement the rental shortfall when necessary for long-term returns. The Denver market is extremely competitive, so speed-to-close is critical. Denver has one of the lowest unemployment rates in the country and in light of some new laws in Colorado has become a destination for people from all over the country. Our borrower has a huge competitive advantage that we allow him the ability to offer cash and a quick close. These properties are a buy-and-hold, long-term investment. 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.
3675 S Hibiscus Way was built in 1956, 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 1,283 sq. ft. on a 10,000 sq. ft. lot. The property is near schools, parks, shops, restaurants, and employment centers.
The managing member of 3675 S Hibiscus Way 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 additional real estate assets.