9 Property Package
This is a prefunded purchase and rehab opportunity for a 9 property portfolio of 1-3 unit properties in Sacramento, California.
The developer is requesting a loan of $956,000 in order to purchase and renovate 9 properties. The properties were purchased for a total of $1,060,000 in August of 2015. There is minor renovation needed for all properties, totaling $135,000. The borrower will receive 5 draw(s) totaling $956,000 over the course of the loan. The initial draw in the amount of $821,00 occurs at closing. The second draw of $35,000 will be disbursed as work is completed. The third draw of $35,000 will be disbursed as work is completed. The fourth draw of $35,000 will be disbursed as work is completed. The fifth draw of $30,000 will be disbursed when the renovation is completed. All draws will be issued upon receipt of proof of work. The borrower plans to either refinance or sell the properties in one year or under
- Purchase Price: $1,060,000
- Renovation: $135,000
- After-Rehab Value: $1,389,500
Independent third party appraisals commissioned by Patch of Land, show an After Repair Value (ARV) of $1,389,500 for Multiple Addresses. The ARV ratio is 68.8% 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 Sacramento is stable and supply and demand are in balance.
The properties are located in the Del Paso Heights neighborhood of Sacramento, CA. The portfolio contains six Single Family Residences, two 2-unit properties, and one 3 unit property. The properties are located a few miles north of Downtown Sacramento. The properties will undergo minor renovation. They are located within easy access to major throughways, public amenities, shopping, and recreation.
Property renovations in the amount of $135,000 will occur after the loan closes. There is a minor renovation needed across the portfolio. Renovations include:
- Paint interior
- Carpentry repairs
- Electrical repairs
- Plumbing repairs