Upgrading Property (Roof)
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|Loan Status:||Paid||Origination Date:||2007-12-27||EricsCC ROI:||10%|
|Dec 27, 2007||Current|
|Sep 24, 2009||Payoff in progress|
|Oct 01, 2009||Paid|
Purpose of loan:
I will use this loan to replace the roof on a small commercial shopping center I own in Arizona. We have gotten five bids from local roofing companies which range from $22,000.00 to $29,000.00. We have decided we want to go with the $27,000 bid because they are providing a construction bond against their 10-year guarantee on leaks.
We are prepping the building for possible sale. A new tenant will move in January 1, 2008 and he will be signing a 3 year lease agreement with 3 year option so it will make the building fully leased through 2011. The new lease will add $1200.00 a month to the cash flow of the property cams not included, with 3% bumps every year. We plan on using the new lease cash-flow to pay for the monthly Proper payments, but should the tenant not pay myself and my group leader (also my son) guarantee this loan.
My financial situation:
I am a maintenance manager working for a plastic manufacturing company. I have been working continuously in this field for over 30 years and I am earning roughly $85,000 salary, bonuses not included. In addition to my regular job, I own a couple of residential rental properties, the above said commercial property, and an autonomous side business which are all free cash flowing. To the recommendation of my group leader, I did not include the income from these income-generators below so please take that into consideration.
The $300,000 revolving balance you see on my credit is a fixed-rate HELOC loan I took out on my primary residence to purchase the commercial property. The commercial property therefore technically has no debt attached to the title and we own it free and clear. We estimate the commercial property to be worth between $850k and $1 million current market prices.
Monthly net income: $7000
Monthly expenses: $
Car expenses: $ 200
Utilities: $ 300
Phone, cable, internet: $ 100
Food, entertainment: $ 500
Clothing, household expenses $ 300
Credit cards and other loans: $0 (all paid)
Other expenses: $ 200
Total: $3970 (approx)