Investment Case Study

Deal Summary : 3116 S. 55th Ct, Cicero, IL 60804

  1. Characteristics of the Loan Situation
    Property Type Brick Bungalow
    Property Value (post renovations)
    $130,000 per appraisal
    Property Acquisition
    Construction Budget
    $135,000
    $0
    Borrower Equity/Capital Structure
    25%/75%
    Loan Amount
    $101,250
    LTV
    77.9%
    Economics
    Interest Rate :  10.8%
    Points:  4
    Total Interest/Points Income for Loan Interest:  $11,755
    Points: $4,050
    Investor Rate of Return
    Medford Manager Rate of Return Total Fund Rate of Return
    9.40%
    5.19%
    14.59%

    • Loan funded on 9/30/2013
    • Property Acquisition of $135,000
    • Construction Budget of $0
    • Borrower intent for Property – Buy and Hold
    • Total Loan of $101,250 (75% of acquisition + construction)
    • 77.9% Loan to Value

  2. Overview of underwriting process
    • Medford Required a completed Loan Application, Tax Returns, W-2's, Bank Statements, Paystubs
    • Ran/Reviewed Credit
    • Met with Borrower to Analyze Deal/Financing Structure
    • Validated After Repair value with Realtor/Appraiser
    • Validated Construction Budget/Reviewed Contractor Bids


  3. Summary of collateral coverage
    • 75% of Acquisition and Construction
    • 77.9% of Loan to After Repair Value per Appraisal


  4. Overview of performance to date/status
    • Loan was paid off on 10/21/2014 refinanced through conventional financing
    • Fund earned interest of $11,755
    • Fund earned points of $4,050
    • Fund Earned an annualized rate of return of 14.59%