To: REINLAC Members
Subject: Loan Request from Fellow Member
Dear REINLAC Member,
A member has requested that we send out a loan request to our members. This is the first time a request like this has come up. Since we are here to help, you are seeing this on the REINLAC.net blog. (The member who is seeking the loan wants their name withheld.)
Those members who are interested should email or call me.
P.S. I’ve known and worked with this member for about 9 years. My business dealings with him, and there have been a few, have all been positive.
Existing Management Company
- +/- 90 Single Family and small units.
- Includes 20 FNMA rentals.
- 1 of only 2 exclusive FNMA Management Vendors in Antelope Valley.
- Low overhead operation.
- Low fee loss from vacancy.
- +/- $9000/mo gross w/continued expansion of FMV and FNMA accounts.
- 2011 saw 50% growth in accounts and 50% revenue growth.
- Project continued 50% growth of accounts and revenues in 2012.
Seeking purchase financing for a competing management co. (Note: The subject company is the other FNMA vendor within the marketplace) FNMA accounts would be purchased under a separate agreement that would net Urban Resources an additional $1500 monthly.
The core business is:
- +/- 105 Single Family Homes
- Grosses +/- $11,000/mo.
- Business projects 40% account and revenue growth in 2012.
- Excluding projected growth, combined revenues for both operations would exceed $21,500/mo on closing date.
- Projected expenses are $5000/mo payroll; $2500 office expenses.
- The remaining $14,000/mo would be available for debt service.
Seeking these terms:
Loan amount: $75,000
+ Fee (5 points): $ 3,750
Amortized: 24 months
Annual Interest: 25%
Monthly payment: $ 4,203
We would also offer expedited seizure and uncontested Trustee insertion in the event of a default.
REINLAC – The Real Estate Investors of North Los Angeles County
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