Collateral #1 - The 2-story steel building on concrete slab on grade, 4,800 sq ft.
"As Is" Appraisal -$404,000 (Real Estate Broker BPO $404,016) 3 nearby comps None was over 2,000 sq ft. None was finished out as a home. All were commercial use buildings. The BPO was based on $84.17 per sq ft. My $404,000 is based on $84.17 per sq ft. That is quite low. The current average construction costs in the Lake of the Ozarks area is $131 - $154. Since my target market is retirees, especially those hit by the multi-corporation pension fund fiasco brought on by pension fund investment into the same mortgage-backed securities that caused the 2008 Wall Street Meltdown which was caused by the repeal in 1999 of the Glass-Steagall Finance Act of 1934.
"As Finished" Appraisal - We built the house up to 80% and there is specific undone work that is not major but it does have appraisal impact. The finish work will fix those problems. $154 per sq ft is average for the area. $131 is the minimum. Even if I estimate $120 per sq ft value, the valuation at $120 would not be low = $576,000 and it could be sold in 90 days if it became necessary. I have been doing this way too long for that to happen. But, there are events we can't control. That is my best outcome as I believe the situation is today.
1.) Solicitation Quick Overview:
2.) Overview of Project, History, and Plan:
The Borrower is "Boulevard at Eagle Bay, LLC, and/or Danny Hammond and Is Pursuing Funding For Multiple Rehab, Remodel, & New Ground Up Construction Loans. The plan is for Finished Product To Be Sold, or Held as Rental Units At Eagle Bay Subdivision On The 78 Mile Marker of the Lake of the Ozarks
3.) Solicitation:
Funding which the Borrower is searching to obtain.
1st Funding:
The first funding is a Bridge loan to larger businees real estate properties loans and the Borrower is requesting a - 40% LTV Bridge loan based on appraisal. The Use of Funds for this first phase loan is described during the Sumary.
I am confident an appraisal will be in the $400,000 range. This 40% LTV would be $160,000
If the appraisal is lower then, of course, the loan amount will go down proportionally. I will then have to scale down the scope of work to fit this loan.
The loan will be used to payoff a local bank's $37,000 loan which funds were used to move my office and residence 100 miles from KC, MO to Lake of the Ozarks in Central Western Missouri.
The $37,000 is the only current debt either business or commercial owed by Danny Hammond, the proposed Borrower, over the last 12 years.
In anticipation of loans that are approved and scheduled which may have some delays, this $160,000 funding is a request for a bridge loan in order to allow us to accomplish whatever prepatory and actual profit work that we can accomplish during the the interim.
Use of Funds: $160,000 (40% LTV with the anticipated $400,000 current value)
1.) Pay off a small commercial bank loan with a $37,000 approximate amount. The property is the collateral for this November of 2023 loan, which was used to pay for:
a.) the 100 mile move to Lincoln, MO. of the residence and the Offices of Danny Hammond and Boulevard Real Estate from Lees Summit, MO (Kansas City).
b.) Payment of property taxes, bills, transportation expenses, beginning the preparation of upgrades in advance of the fundings that are the subject of the this Solicitation of Loans.
Use of $160,000 funding;
Pay off Community National Bank and Trust of Lincoln, MO <37,000> 43,000
Begin upgrading and maintainance of lawns and streets <10,000> 33,000
to begin building credibility and curb appeal for future
buyer/renter prospects.
Marketing Software and planning and targeting of the <5,000> 28,000 Balance
different markets which we see as providing long term
sustainablity of construction and sales programs, as well
as, surveys, obtaining plats etc.
$28,000 to be held in reserve until the viabliity of the 2nd
funding for the $60,000 Rehab of the smaller existing home
is proven. I had anticipated building and selling, but the market
seems more viable with holding and renting.
This home has no debt owed against it. It has very unique
aesthetic qualities suited very well for this area. It will have
an As Finished sales value between $120,000 - $150,000.
At $60,000 for a complete rehab and a $135,000 sale or long
term rental unit financing. Either would yield $75,000 working
capital or repayment of part of the Bridge Loan.
Exit Strategy:
To Borrow from another source.
The Property could be sold to pay off the loan and add to
Cash on Hand. Doing this would complicate where we
work from, but would not dampen the project itself.
In fact it would strengthen the business Cash on Hand.
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