Sanford Company LLC
The borrower for this loan is Sanford Company LLC. Sanford Company LLC was created in 2000 and is owned entirely by its managing member, Brad Sanford, a real estate investor and property manager based in Alabama.
Brad has owned, developed, and managed numerous properties and brings over 25 years of contractor, construction, and property management experience to each new project. He bought his first property while in college at the University of Alabama.
After college, Brad worked in the insurance business, eventually selling his ownership in the company to pursue other opportunities. During this time, hard work and good fortune allowed him to spend significant time and effort in obtaining his own income producing properties. In addition to operating other businesses, Brad continually managed a small number of single family properties, creating many partnerships to acquire and market undeveloped real estate..
Over the years, Brad has "learned by doing" most of the trade elements in home construction, and is especially skilled at flooring, decks, kitchen and bath remodels, ornamental concrete work, and most other general maintenance items. Since about 2005, he has focused primarily on doing his own projects, with an emphasis on single family properties. Sanford Company LLC occasionally does commercial remodels for medium size apartment complexes, but Brad is moving once again toward managing his own portfolio of properties. The current real estate climate is ideal for this model of property investment.
In the most recent years, Brad married and is a proud father of a delightful six year old son.
- 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.
- 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 mortgage deed.
- 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.
*The above is not intended to be a full discussion of all the risks of this investment.
(877) 781-7062Contact Investor Relations