Starting New Business - Closing Old RELIST
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|Funded:||100%||Group:||FINANCE & INVESTMENTS|
|Loan Status:||Default||Origination Date:||2007-05-02||EricsCC ROI:||-22%|
|May 04, 2007||Current|
|Oct 18, 2008||Late|
|Nov 03, 2008||1 month late|
|Dec 03, 2008||2 months late|
|Jan 05, 2009||3 months late|
|Feb 03, 2009||4+ months late|
|Feb 04, 2009||Default|
Purpose of loan:
This loan will be used to help me close down my law practice and start an environmental services business. This has been an exciting project, and I want to devote all of my time to it. I had a successful law practice, but feel called to do the environmental work. We have just sold our first alternative fuel motorcycle, and have a patent on a very promising ethanol valve, running on units in the Midwest, which makes ethanol much more efficient than it is currently. We are also starting an on-line service which will broker alternative fuels.
I have a few debts from my law practice (advertising, etc.) that I want to get rid of. There are not interest rates per se attached to them, but I have always paid all of my bills, and I want to be rid of these. I also will owe some taxes, and want to have "buffer" so that I can make sure I can take care of my employees and myself.
$10,000 will go to pay down advertising expenses ($5,000 Names and Numbers, $2,000 Martindale Hubbell, $3,000 R.W. Lynch)
$7,500 will be used for 2006 taxes
$7,500 will be a buffer. If any is left over, I may invest in Prosper.
My financial situation:
I make $7,000 net salary and $6,000 per month in rent on a building I built. IN ADDTION, I receive at least $2,000 per month from law practice and occasionally receive larger fees on law cases. I have one coming in the next few months which would pay around $30,000. I may use some of this to pay down my loan. I also am still owed $30,000 on the sale of my law practice which is paid at least $3,000 per month.
My monthly budget:
Mortgage/rent: $3,500 (includes h.o. insurance and taxes)
Car expenses: $500
Phone, cable, internet: $200
Food, entertainment: $800
Clothing, household expenses $500
Credit cards and other loan payments: $4000 (includes payment on the office building for which I get $6,000/month rent)
Other expenses (tithe): $1500
Total monthly expenses: $11,800
My new business will focus on alternative fuels and feedstocks. It has already attracted numerous investors, and, as stated above, have made our first sale. It obviously takes a lot of capital, and we have done okay to this point. I would just like to have a little extra buffer and be able to make sure everyone else is taken care of in front of me.
ONE LAST NOTE: The reason my DTI is so high is that I am listed as the primary borrower on a beach condo in Georgia. My cousins and I bought this last Spring, and it is an excellent investment. We both put down $30,000 and financed the rest (approximately $230,000). Even though we pay the payments through the rental income, and even though I'm really only responsible for half of that amount, it is listed on my report. This throws the numbers off considerably.
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|117117||Starting a New Endeavor||B||$25,000 @ 15%||Mar 29, 2007||Expired|