Investment Case Study

Deal Summary : 2814 N. Keating Ave, Chicago, IL 60641

  1. Characteristics of the Loan Situation
    Property Type Brick Bungalow
    Property Value (post renovations)
    $265,000 per Appraisal $280,000 Sold
    Property Acquisition
    Construction Budget
    $122, 500
    $74,500
    Borrower Equity/Capital Structure
    20%/80%
    Loan Amount
    $157,600
    LTV
    59%
    Economics
    Interest Rate :  10.6%
    Points:  3.8
    Total Interest/Points Income for Loan Interest:  $10,549
    Points: $5,984
    Investor Rate of Return
    Medford Manager Rate of Return Total Fund Rate of Return
    9.87%
    7.68%
    17.55%

    • Loan funded on 12/19/2014
    • Property Acquisition of $122,500
    • Construction Budget of $74,500
    • Borrower Intent – Renovate and Sell
    • Total Loan of $157,600 (80% of acquisition + construction)
    • 59% 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
    • 80% of Acquisition and Construction
    • 59% of Loan to After Repair Value per Appraisal

  4. Overview of performance to date/status
    • Property was sold for $280,000 on 8/1/2014
    • Fund earned interest of $10,549
    • Fund earned points of $5,984
    • Fund Earned an annualized rate of return of 17.55%