Prosper Lender Seeks Loan for Rental Property Renovation
| Listing Information | |||
|---|---|---|---|
| Amount: | $12,000.00 | Status: | Loan created |
| Grade: | B | DTI: | 36% |
| Lender Rate: | 12% | Borrower: | Auream |
| Finished | State: | NY | |
| Funded: | 100% | Group: | The .Org |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | Paid | Origination Date: | 2007-11-23 | EricsCC ROI: | 11% |
| Status History | |
|---|---|
| Nov 23, 2007 | Current |
| Feb 18, 2008 | Payoff in progress |
| Feb 23, 2008 | Paid |
|
I am asking for $12,000 to be used towards a new roof and other repairs to a rental property (duplex) I recently bought for $64,000, using my own cash and a very low interest equity line. There is currently one tenant in the upstairs apartment paying $615/mo in rent and paying her own utilities. The downstairs apartment is empty and will be renovated in preparation for a new tenant at around $650/mo. Despite sizeable assets, I am seeking this loan because I do not want to sell my stocks and mutual funds and incur capital gains taxes, nor do I want to cash out my Roth IRA or 401k for obvious reasons. I can provide proof of these additional assets as well as any other reasonable information any lenders might want.
Explanation of high revolving credit: I took out a HELOC at an extremely low rate (prime-1, or 6.50% currently) to fund part of my duplex purchase. This is about $30,000 on the revolving balance listed. The rest is from a credit card at 1.99% for life, $8000, and other credit cards that I pay off in full each month, but nevertheless the closing balances show up on my credit reports
Explanation of DTI: I am only including my easily verifiable full-time W2 income from my job as an embedded software engineer, which is $60,500 per year. I also take in an additional $1175/month in rental income from renting out rooms in my house and I earn 615/mo in rental income from my new Duplex, which will double with the addition of another tenant. Additionally, my "debt payments" look higher than they should be because I charge everything, and pay it all off at the end of the month. This causes my "debt payments" to look higher than they really are.
You can see by my history at LendingStats.com that I have a rather sizeable outstanding Prosper portfolio of about $23,000. I am also contributor on both the Prospers.org and officlal Prosper.com forums, as well as other financial forums on the web. I have been lending on Prosper for nearly two years! I figured its time to try it from the other side.
Monthly Gross Income: $6831
Monthly Outgo: Income Taxes: $1200 401(k) Contribution: $1000 Roth IRA: $333 Mutual Funds and stocks: $500 Mortgage: $612 Insurance (all policies): $140 Car Payment, Gas, Expenses: $375 Property Taxes: $580 Phone/Cable/Utilities: $300 Food/Entertainment: $500 HELOC and 1.99% Credit Card: $320 Other: $300 (max, usually less) Total Outgo: $6160 The remaining $500-$1000 each month goes into short-term savings in my 6.01% interest checking account, and after the loan funds will be used to pay on the Prosper loan instead. As you can see, if any unforeseen circumstances arise, I can easily reduce my 401(k) and/or taxable investment contributions in order to make my Prosper loan payments. EARLY REPAYMENT DISCLOSURE: Depending on the rate this loan closes at, I will probably repay early. While its no guarantee, my repayment will be roughly according to the following schedule: Interest rate below 9%: Carry to full term 9-10%: Repay between 18 and 24 months 10-11%: Repay between 12 and 18 months 11-12% Repay at around 12 months 12%+ Repay within 6-12 months |
|
Discussion For This Listing
|
||
|---|---|---|
|
No Comments Found For This Listing
|