Staff Menu (IO ID#: 41549):
EDIT IO DOCUMENTS
Completed Debt
Residential
9726 E Shore Dr.
Willis, TX
INVESTMENT STRATEGY
INVESTMENT TYPE
Debt
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100% funded
Offered By Borrower for 9726 E Shores Dr.
%* TARGET IRR 8.5%-%
* TARGET EQUITY MULTIPLE
Estimated Hold Period 12 months
Estimated First Distribution
*Please carefully review the Disclaimers section below, including regarding Sponsor’s assumptions and target returns
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Overview
Management

Borrower for 9726 E Shores Dr.

The Borrower has a credit score over 630 and has completed 25 rehab projects in the past.

Track Record

Business Plan
Property

At A Glance

Property Type: Residential, Single-Family
Investment Type: Loan Purchase
Estimated Return: 8.5% annualized
Loan Term: 12 months
Location: Willis, TX
   
Purchase Price: $510,000
Rehab Budget (1): $103,450
Total Project Cost: $613,450
Loan Amount: $550,000
Borrower Cash Equity: $72,570
Est. After Repair Value (ARV): $785,000
Loan-to-ARV %: 70%

(1) Rehab budgets are part of the loan amount but distributed incrementally to borrower as repairs are confirmed via receipts, permits, and/or inspection(s).

Summary

The borrower ​is obtaining a loan for the purpose of acquisition and rehab. The borrower​ plans to perform $103,450 in renovations on the property and list it for sale as quickly as possible. The rehab and expansion budget involves repairs, including but not limited to painting, electrical, flooring, building a 2 car garage, replacing windows, doors and installing a new patio. Realty Mogul Co. will disburse rehab funds based upon completion and inspection of improvements.

There is a three (3) month prepayment penalty associated with the loan. Any proceeds received from the prepayment penalty will be paid to the investors.

Risk Factors*

  • Forward-Looking Statements: Investors should not rely on any forward-looking statements made regarding this opportunity, because such statements are inherently uncertain and involve risks. We use words such as “anticipated”, “projected”, “forecasted”, “estimated”, “prospective”, “believes”, “expects”, “plans”, “future”, “intends”, “should”, “can”, “could”, “might”, “potential”, “continue”, “may”, “will”, and similar expressions to identify these forward-looking statements.
  • Market Risk: Investments related to mortgages secured by real estate are subject to market valuation risks that may be caused by changing economic and local market conditions. The property underlying the corresponding borrower loan is expected to have reasonably acceptable loan-to-value ratios and to meet certain other valuation criteria, but estimated values made when the loan is originated may not fully represent current market values, and subsequent market values will in particular be affected by changing economic or local market conditions. Such conditions are beyond the control of Realty Mogul and of the corresponding borrower on this loan. Such conditions may change due to factors such as local real estate market conditions, prevailing interest rates, the rate of unemployment, the level of consumer confidence, the value of the U.S. dollar, energy prices, changes in consumer spending, the number of personal bankruptcies, disruptions in the credit markets and other factors.
  • Credit Risk: The borrower loan is being made with respect to a property that is in need of repairs, a situation that does not generally meet the financing criteria for conventional mortgages from institutional sources. Credit risk is inherent in the mortgage lending industry, and there can be no assurance that the credit worthiness of the borrower will be sufficient to assure the full repayment of the underlying borrower loan.
  • Insurance Risk: The borrower will maintain insurance of the kind that is customarily obtained for similar properties, but is not expected to carry certain disaster-type insurance (covering events of a catastrophic nature, such as earthquakes). In the event that an uninsured disaster should occur to the real property underlying the corresponding borrower loan, or in the event a borrower does not maintain the required insurance and a loss occurs, Realty Mogul could experience difficulty recovering the principal amount of the corresponding borrower loan and any interest due thereon.

Risk Mitigation*

  • There is a full personal guarantee on the underlying borrower loan.
  • The borrower is a real estate company with a history and a track record of success.
  • The security interest for the underlying borrower loan is a deed of trust.
  • The underlying borrower loan is protected by title insurance.
  • The underlying property is protected by hazard insurance.
  • Investor returns are not contingent on the appreciation of the property value and investor returns do not increase based on any resale price. The borrower is still obligated to repay the corresponding borrower loan.
  • In a worst case scenario, a foreclosure of the property is possible. Proceeds would be distributed to investors according to the percentage of the total investment opportunity initially funded net of any expenses incurred for the foreclosure proceedings. 

*The above is not intended to be a full discussion of all the risks of this investment.

Location

The property is located in Willis, Texas a city located in Montgomery County approximately 50 miles North of Houston. Willis is located 35 miles North of George Bush Intercontinental Airport and near Interstate 45 and several other highways and railroads. Willis also boasts a highly rated school district.

The property is a Lakefront property located in a private suburban community that borders a 22,000 acre recreational lake. It is in average condition relative to other properties nearby that are of similar age and size. The property is located approximately 5 miles west of Interstate 45.

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Disclaimers/FAQs
Disclaimers

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