Showing posts with label Hard money #16. Show all posts
Showing posts with label Hard money #16. Show all posts
HML #16 Paid Off
My hard money loan #16 was finally paid off last Friday. That was a relatively short 8 month loan. My partner is looking for another opportunity now.
July Update
Things have not been too eventful lately.. Hard Money Loan #16 was supposed to be paid off a week ago, but apparently that sale fell through. My partner contacted the escrow company a couple times to try to give them a payoff amount, but his calls were never returned. And we just received another regular loan payment, so all indications are the sale fell through.
Also received a payment on hml #17. Payments have been coming in on that one like clockwork.
Unfortunately, the Houston apartment complex has had another not so good month. After having an occupancy of 90% in May, June's figure rose slightly to 91% but that came at the cost of increased concessions. June also experienced high turnover along with the increased costs that brings (marketing, cleaning, etc). Management expects July's revenue to rebound to about $7,000 more than June.
Expenses actually declined a bit, although the utilities cost rose due to the higher temperatures of summer. Our management company has deferred their fees to help improve the bottom line. Our mortgage switches from interest only to interest plus principal in July, which will raise our monthly payment by about $10,000.
Management is still cautiously optimistic about the second half of the year and they do feel like the overall market is improving. However, the concessions given to attract tenants tend to delay those improvements from showing up in the bottom line for a bit. For the first six months of this year, we are actually running about $105,000 ahead of our budgeted net operating income, although 10% of that amount can be attributed to the management company delaying their fees.
In other news, tomorrow marks the seven year anniversary of this blog!
Also received a payment on hml #17. Payments have been coming in on that one like clockwork.
Unfortunately, the Houston apartment complex has had another not so good month. After having an occupancy of 90% in May, June's figure rose slightly to 91% but that came at the cost of increased concessions. June also experienced high turnover along with the increased costs that brings (marketing, cleaning, etc). Management expects July's revenue to rebound to about $7,000 more than June.
Expenses actually declined a bit, although the utilities cost rose due to the higher temperatures of summer. Our management company has deferred their fees to help improve the bottom line. Our mortgage switches from interest only to interest plus principal in July, which will raise our monthly payment by about $10,000.
Management is still cautiously optimistic about the second half of the year and they do feel like the overall market is improving. However, the concessions given to attract tenants tend to delay those improvements from showing up in the bottom line for a bit. For the first six months of this year, we are actually running about $105,000 ahead of our budgeted net operating income, although 10% of that amount can be attributed to the management company delaying their fees.
In other news, tomorrow marks the seven year anniversary of this blog!
Another Hard Money Loan Started
Hard money loan #16 kicked off a few days ago. This is a loan on a property bought at foreclosure auction in Antioch, California, which is east and a tiny bit north of San Francisco. The borrowers are two people who have borrowed from us before. They purchased the property for $220,000. (The bank took a $400,000 loss on this one - ouch!) Our loan, secured by a first mortgage, is for $162,000, giving a LTV ratio of 73%. The borrower tells us he already has a buyer in line for the property at $270,000. (Until we're in escrow, I wouldn't hold my breath. Deals fall apart all the time.) My partner figures it's worth between $270,000 and $280,000. This seemed like it was a fairly hot property at the auction - there were a total of 8 parties bidding on it. The property is a two story single family home of about 2,300 square feet. It was built in 2000 and has 4 bedrooms and 2 baths. A nearby comp is currently in escrow for around $255,000 and it sold quickly at that price with multiple offers. And it still needed paint and carpet and is a slightly inferior model.
Standard loan deal - 1 year, interest only payments, 9% net to investors.
Standard loan deal - 1 year, interest only payments, 9% net to investors.
