Renovating vacant housing into a comfy, safe place to live
| Listing Information | |||
|---|---|---|---|
| Amount: | $16,500.00 | Status: | Loan created |
| Grade: | AA | DTI: | 18% |
| Lender Rate: | 12% | Borrower: | Terp1 |
| Finished | State: | MD | |
| Funded: | 100% | Group: | (No Group) |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | Current | Origination Date: | 2008-01-31 | EricsCC ROI: | 10% |
| Status History | |
|---|---|
| Jan 31, 2008 | Current |
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Purpose of loan: This loan will be used to pay for renovations to two vacant houses my wife and I own with the intent of turning them into rental housing with a tenant option to purchase after 3 years. My financial situation: I am a good candidate for this loan because of my financial strength and real estate business experience. My wife and I own both of the subject houses outright (no mortgage) and have money for renovations if we sell out of our stock/mutual fund portfolio (balance of $110K in various brokerage and retirement accounts) but selling and repurchasing multiple times during one year will be a nightmare come tax time. We have a net worth of over $500K and our only debt beyond mortgages is approximately $45K on a HELOC on one of our properties (overall LTV is below 75%!) and $15K (of $36K limit) on a Mastercard for material and contractor services at Home Depot for these properties. We both have good full time jobs (I work for a pharmaceutical company and my wife is a high school teacher) and have considerable experience as real estate investors. We own 9 investment properties with a total of 26 units that are 100% occupied (we have a waiting list for the two properties we are renovating...) and are cash-flow positive. Depending on future opportunities, we will either use the cash flow from renting the properties ($950 a month) to pay back the Prosper loan or refinance by taking out a mortgage at no more than an 80% loan-to-value ratio and pay off the Prosper loan with the proceeds from the mortgage. My personal mission in life is to help myself and others live a happier, healthier existence. One of the basics in that is having a clean, safe, comfortable place to live. The city where we invest (Johnstown, PA) has a very large, very old stock of housing that is very often run down to the point where it is torn down. My wife and I find vacant housing and turn it into a nice place to live, providing tenants with a much nicer, newer alternative for housing than their current choices. Further, with the nationwide credit crunch in housing, our lease purchase option allows decent, hard-working people the opportunity to rent and build equity in a property over enough time that they can realistically purchase the house at the end of their 3-year lease option and realize the dream of becoming homeowners. I hope you will help us accomplish this! |
| Borrower's Other Listings | |||||
|---|---|---|---|---|---|
| 413871 | Renovating vacant duplex into an attractive, safe home | A | $9,900 @ 21% | Oct 15, 2008 | Cancelled |
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