Improvements to Victorian Apartment Building
| Listing Information | |||
|---|---|---|---|
| Amount: | $16,000.00 | Status: | Loan created |
| Grade: | AA | DTI: | 0% |
| Lender Rate: | 16% | Borrower: | realestateinvestor11 |
| Finished | State: | KY | |
| Funded: | 100% | Group: | (No Group) |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | Current | Origination Date: | 2008-04-30 | EricsCC ROI: | 14% |
| Status History | |
|---|---|
| Apr 30, 2008 | Current |
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Purpose of loan: This loan will be used to perform renovations to the four unit Victorian apartment building shown in the pictures and located in a historic preservation district. Specifically, the funds will be used to: 1) Add central air conditioning to each of the four apartments in the building (each apartment has separate HVAC ductwork already present lessening the cost). The central air conditioning will significantly increase the monthly rent we can charge for each of these apartments; 2) Finish most of the 1,500 square foot first floor walk out style basement to add this living space to the first floor apartment. The addition will change the existing first floor apartment from a 1,400 square foot, 2 bedroom, one bath, apartment into an approximately 2,700 square foot 3 bedroom with den (or 4 bedroom), 2 full bath apartment. This will create a wonderful master unit apartment which rent at a premium in the area to young professionals and/or families. The increased rent will more than offset the monthly cost of the loan, but increased livable square footage will drastically increase the value of the building. (Since purchasing the building in October, 2005 we have already raised the rents from $2,175 per month to the current monthly rent of $3,044 per month). We have skilled tradesman that work for our company (as well indpendent contractors to use as needed), and we can perform most of the renovation work in house without having to use outside contractors. We have very significant experience with this type of renovation, having performed similar projects over 8 previous times. My financial situation: I am a good candidate for this loan because I have been a commercial real estate attorney for seven years having worked for the largest firm in the state for most of this time. After investing in real estate for over 6 years, I have recently focused all of my efforts on running our real estate business (which is why I do not have a W-2 to verify income on the website). We own and manage sixty five apartments and currently are at 100% occupancy. We are very active real estate investors and create value in our apartment buildings through renovation and proper management. Our properties currently have a 1.85% debt service coverage ratio (monthly rents of $37,925 and debt service payments of $20,450, leaving plenty of funds for operations and profit). We also have very substantial equity in the properties. |
| Borrower's Other Listings | |||||
|---|---|---|---|---|---|
| 306229 | Improvements to Victorian Apartment Building | AA | $23,000 @ 14% | Apr 08, 2008 | Expired |
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