DADDY380
377 Posts |
 Posted - 08/04/2008 : 2:33:38 PM
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Please note that I have an appraisal as well but will not send out until after you reviewed the summary letter I put together and Memorandum the developer sent me—this should give you a good idea as to what he is looking for
Developer is in need of approx. $2.25m to finish the completion of the 22 upper class single family homes in an exclusive area of Vero Beach Florida.
The appraisal as is –with the work that was completed as of today/total current project value is $3.5m—so with the discounted note that would be paid off-there is a lot of existing equity in the project.
Total estimated value of the project when all homes are completed will at least be at around $7.5m—considering the average home price is $335k
Net revenue will be at around $2.7m
Colonial bank-the original debt holder—called back the note of $3.5m—which is a blessing in disguise as they will take the note back at a very discounted balance of $850k----THAT’S LESS THAN 35% OF THE ORIGINAL BALANCE!!!!
So the borrowed money would be used to pay off that $850k Colonial bank 1st mortgage note and an additional $1.5m to finish the completion of the 8 or so homes and some of the exisiting properties.
The developer paid pff everybody else—accept for some mechanical leins of around 4150k which he is working on
Out of the 22 homes—16 are completed(out of those, 60-80% are fully completed from top to bottom and don’t need any finishing touches)
4 of the homes are presold already. Please note that almost all were sold out but the developer had to give back the deposits on the majority of the homes as they were not completetd as of yet but feels he has not problem getting the properties sold out once they are completed.
The developer only needs 8 sold homes to cover all the outstanding mortgages he would have with you—and will not take long to finish this up.
He will take the money as a loan or a JV partnership—which ever is easier to get this done
Borrower has a long history of projects he has developed and could provide a resume to show his completions
He can also show asetts of around $3.1mk or so(will not cross collateralize)
Borrower/developer has already put 41.5m of his own money to buy the land/all entitlements completed and in place
Give me an idea of the best rates and or points you would charge to get this done and or financing options you think you can provide
thanks
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