Renovating Investment Property
| Listing Information | |||
|---|---|---|---|
| Amount: | $21,500.00 | Status: | Loan created |
| Grade: | A | DTI: | 20% |
| Lender Rate: | 14% | Borrower: | dn014030 |
| Finished | State: | CA | |
| Funded: | 100% | Group: | (No Group) |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | Default | Origination Date: | 2008-02-11 | EricsCC ROI: | -63% |
| Status History | |
|---|---|
| Feb 08, 2008 | Current |
| May 27, 2008 | Late |
| Jun 12, 2008 | 1 month late |
| Jul 12, 2008 | 2 months late |
| Aug 12, 2008 | 3 months late |
| Sep 13, 2008 | 4+ months late |
| Dec 29, 2008 | Default |
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Purpose of loan: This loan will be used to pay the cost of renovating my investment property. With the current slow construction market, I was able to negotiate a major inside renovation of my rental house at a very low cost (35% discount). My last tenant had just moved out and I was able to schedule the construction work to start right away. I had a plan to do this for a long time and this was a perfect opportunity for me to get it done. I had worked with this contruction group before and had a great confidence in their work. As you can see from the pictures, the work is now 90% done and has another week to go. After the renovation, my rental income is projected to increase by $300 per month (from $1700 to $2000) which can be used to pay up to 15% of the interest rate from this loan. The 8% interest rate in difference (23% -15%) will be my out-of-pocket expense. My financial situation: I am a good candidate for this loan because I have good credit history and need to keep it that way for my future investment plans. The rental market in my area (Orange County, California) is excellent and my full time job is stable; therefore, I do not foresee any difficulties of making the payment for this loan. My full time job's gross income for 2007 was $156,000 (verified by Prosper) and the anticipated income for 2008 is $170,000 (excluding my wife's income of $90,000). My rental investment income was even for 2007 and anticipated to be the same for 2008. |
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