Investment Case Study

Deal Summary : 2801 Indian Boundary Rd, River Grove, IL 60171

  1. Characteristics of the Loan Situation
    Property Type Frame Single Family Home
    Property Value (post renovations)
    $295,000 per Appraisal
    $303,500 Sold
    Property Acquisition
    Construction Budget
    $102,000
    $90,000
    Borrower Equity/Capital Structure
    30%/70%
    Loan Amount
    $134,400
    LTV
    46%
    Economics
    Interest Rate : 10.8%
    Points: 4
    Total Interest/Points Income for Loan Interest: $5,511
    Points: $5,376
    Investor Rate of Return
    Medford Manager Rate of Return Total Fund Rate of Return
    10.79%
    10.76%
    21.55%

    • Loan funded on 3/25/2014
    • Property Acquisition of $102,000
    • Construction Budget of $90,000
    • Total Loan of $134,400 (70% 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
    • 70% of Acquisition and Construction
    • 46% of Loan to After Repair Value per Appraisal

  4. Overview of performance to date/status
    • Property was sold for $303,500 on 9/22/2014
    • Fund earned interest of $5,511
    • Fund earned points of $5,376
    • Fund Earned an annualized rate of return of 21.55%