Investment Case Study

Deal Summary : 1359 Edgewood, Lake Forest, IL 60045

  1. Characteristics of the Loan Situation
    Property Type Single Family Home
    Property Value (post renovations)
    $1,136,759 Sold
    Property Acquisition
    Construction Budget
    $190,000
    $586,000
    Borrower Equity/Capital Structure
    33%/67%
    Loan Amount
    $519,050
    LTV
    46%
    Economics
    Interest Rate : 10.6%
    Points: 4
    Total Interest/Points Income for Loan Interest: $15,709
    Points: $20,762
    Investor Rate of Return
    Medford Manager Rate of Return Total Fund Rate of Return
    11.35%
    13.60%
    24.95%

    • New Construction
    • Loan funded on 11/19/2013
    • Property Acquisition of $190,000
    • Construction Budget of $586,000
    • Total Loan of $519,050 (67% of acquisition + construction)
    • 46% Loan to After Repair 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
    • 67% of Acquisition and Construction
    • 46% of Loan to After Repair Value

  4. Overview of performance to date/status
    • Property was sold for $1,136,759 on 9/5/2014
    • Fund earned interest of $15,709
    • Fund earned points of $20,762
    • Fund earned an annualized rate of return of 24.95%