Total Use of Funds in the first 120 days 2 story 4,800 sq ft steel structure built “slab on grade"
Status at The End of The 120 START-UP-PERIOD
$250,000 Loan Start-up Business Loan Useable Funds Minus <$224,900> of Funds During First 120 days
$ 25,100 Loan Funds in Reserve
+ 47,000 Profit from rehabbing & selling the existing small affordable home lot 7
$ 72,100 Total Funds in Reserve at the end of 120 days Collateral - 4,800 sq. ft. Steel home in the Eagle Bay Subdivision on lots 15-16; Block 33; Plat 5, Eagle Bay, a Subdivision in Benton County Missouri.
Danny Hammond’s Contribution to the Project The above two homes which are owned free and clear. And 8 free and clear new home ready-to-build lots contiguous to the two properties.
Danny Hammond is the original developer of Eagle Bay. He purchased 1200 acres of land and for $550,000 from Dr. Theodore Atlas of Staten Island New York in 1980. Some land has been sold during the Savings and Loan Crisis. More land has been sold since the 2008 Wall Street Meltdown that can be said lasted from 1999 through today.
There are many lots available. The already owned free and clear lots or the 3 lots where the 4,800 sq ft building and the older Tiny Home are sitting. All of the land was surveyed Platted and recorded and this was paid for by Danny Hammond owned companies.
A dam backing up a 6-acre Eagle Bay private fishing lake was built and approximately 11 miles of road were cleared according to the 12 plats that make up Eagle Bay a subdivision recorded in Benton County Missouri. This was all paid for by Danny Hammond or came from sales of lots. All that remains of the original debt is $50,000.
That debt is on 100 more Ready-to-Build new home lots situated near the free and clear properties that are the subject of this proposal.
Eagle Bay is part of a very large destination vacation and 2nd home and retirement area which is a heavily wooded and mountainous area defined by Lake of the Ozarks and the nearby Truman Reservoir, which are very large Lakes and have very diverse usage patterns due to the very different ages of the two very large lakes.
Lake of the Ozarks which is created by Bagnell Dam which was part of the Roosevelt New Deal to help the country get back on its feet after the Wall Street Crash of 1929 and was completed in 1931.
The Osage River is dammed by Bagnell Dam, which thereby impounds the Lake of the Ozarks. The dam was built to produce electricity for for rural Missouri and St. Louis. Both Bagnell Dam and Truman back up the waters of the Osage River and its tributaries. It is almost exactly 99 miles from Bagnell Dam upriver to Truman Dam.
These two lakes are very large and well known in the midwest. Eagle Bay is located between Kansas City and St. Louis. ( See the "Photos & Maps Section") Those two metro areas have a total population of 7 million. Weekend 2nd home owners are so diverse that using from $75,000 to tens of millions of dollars each is not an unreasonable estimate.
Regular weekend visitors come from cities as far away as Chicago. Lake of the Ozarks begins at Bagnell Dam on the Osage River. It is 99 miles from Bagnell Dam to the Truman Dam which collects water from all the small tributaries that combine to form the Osage River. Locations on Lake of the Ozarks are known by the nearest mile marker.
The Eagle Bay private boat ramp enters the lake at the 78 mile marker (mm). Danny Hammond bought and paid cash for the 4800 sq ft subject property and the smaller house and the 8 ready-to-build new home lots in one package for $234,000 in 2011. There are no liens or loans on the property and there have been no liens or loans on the property since the 2011 purchase,
Therefore, the borrower has already invested $234,000 in the property in cash in 2011, and whatever is the true value in today’s market is his equity contribution.
Included in the 1st 120 days $285,000 budget is a $75,000 rehab of an existing small home with some very unique features. It is situated on Lot 7, Block 33, Plat, 5 of Eagle Bay Subdivision contiguous to the 4800 sq ft home. This small affordable home when finished will probably be sold for $150,000 to $170,000. It will take 6 weeks from funding to move in.
This small home has some very uniqure features. It is owned by Danny Hammond and is free and clear. With the $75,000 rehab performed by the construction arm of Boulevard and the sales by Boulevard Real Estate, we should make a $67,000 profit in the first six weeks after funding.
During that time, we will be setting up the restart and beginning 9 ground up new construction homes We will use the small house as our "special" for the entire time of its rehab giving us the story for internet marketing and to firm up the value of the first eight new homes we will be building.
This will also firm up and raise the value of the larger home. This is one exit strategy. To sell that property which would not close the business. I do not want to sell it, but that would be exit strategy #1 in the event of problems paying for this loan. Something that I cannot envision happening even if something were to happen to me.
We will be using the larger home for several things including four mini-hotel rooms giving the buyers of our homes a convenient place for their visitors to stay since we are going to build smaller affordable homes. We have a total of over 100 ready-to-build new home contiguous lots tied up.
Danny Hammond is the original developer of Eagle Bay beginning in 1980. So, we would just repeat this or whatever pattern works best and build smaller versions of the larger home to be used as mini-hotels.
Additional Funds Needed If Provided Buy the Same Lenders I also need 8 New Home ground up Construction Loans @ est. avg. loan of $90,000 each on contiguous ready-to-build-today free and clear home lots at Eagle Bay Subdivision near Warsaw, MO the county seat of Benton County, MO.
The total of the 8 construction loans for new homes for which we are the builder and property manager of is estimated to be $720,000. When 8 homes are built and sold all the lots will have risen in value to $20,000 creating a 2nd large money stream.