Below are summaries of our hard money loans closed recently by Silver Jack Capital.
OURAY HOTEL AND RESTAURANT LOAN SUMMARY
LOAN AMOUNT: Total $115,000.
LOAN TERM: 2 YEARS
INTEREST RATE: 11%
PAYMENT TERMS: Payments will be interest only payable monthly. The lender is guaranteed 6 months interest in the event of early pay-off.
SECURED BY: The property is a 6,725 square foot building located on Main St. in Ouray, CO. It is currently used as a restaurant and the hotel. The building was built in 1898.
VALUE OF THE PROPERTY: The property was valued at $874,250 in January, 2014 by Mark Hitchcox of United Country Sneffles Realty in Ridgway, CO.
LOAN TO VALUE RATIO: 13.2%
USE OF PROCEEDS: The borrower is using most of the proceeds to make a payment due to his ex-wife under the terms of a divorce settlement. The balance of the proceeds will be used to clear up some other bills and debts.
METHOD OF REPAYMENT: The borrower intends to refinance the property within the two year time frame of the loan. He should be able to do this once the other debts are paid and his credit score increases.
BOX ELDER RANCH LOAN SUMMARY II: WELLINGTON, CO
LOAN AMOUNT: Total $265,000.
LOAN TERM: 2 YEARS
INTEREST RATE: 12%
PAYMENT TERMS: Payments will be interest only payable monthly. The payment amount will be $1,325/mo. An additional $1325/mo. will accrue and be due at maturity. The lender will be guaranteed 6 months interest in the event of early pay-off.
SECURED BY: The property is an 80 acre ranch located in Wellington, CO. It is approximately 15 miles north of Fort Collins in Larimer County. The property consists of a recently remodeled 2688 square foot home, a barn, a corral, and several shops and out buildings. The collateral also includes a half share in the North Poudre Water Company.
VALUE OF THE PROPERTY: The property was valued at $585,000 in January, 2014 by Greg Platt of Platt Appraisal Services. This valuation includes the half share in the North Poudre Water Company. As a result of the collateralization of the water share, the property has been valued as irrigated acreage.
LOAN TO VALUE RATIO: 45.3%
USE OF PROCEEDS: The borrower is using the proceeds to obtain a down payment for a ranch in Fruita, CO which is in Mesa County, approximately 10 miles north of Grand Junction. He is doing this because he is relocating to Grand Junction as a result of a job transfer.
METHOD OF REPAYMENT: The borrower has placed the property on the market, along with another 80 acre ranch he owns contiguous to this one, for a total (both properties of $1,550,000. The loan will be paid off when either or both of the two properties sell.
BOX ELDER RANCH LOAN SUMMARY I: WELLINGTON, CO
LOAN AMOUNT: Total $265,000.
LOAN TERM: 2 YEARS
INTEREST RATE: 12%
PAYMENT TERMS: Payments will be interest only payable monthly. The payment amount will be $1,987.50/mo. An additional $662.50/mo. will accrue and be due at maturity. The lender will be guaranteed 6 months interest in the event of early pay-off.
SECURED BY: The property is an 80 acre ranch located on County Road 15 in Wellington, CO. It is approximately 15 miles north of Fort Collins in Larimer County. The property consists of a recently remodeled 2600 square foot home, a barn, a corral, and several shops and out buildings. The collateral also includes a half share in the North Poudre Water Company.
VALUE OF THE PROPERTY: The property was valued at $659,000 in January, 2014 by Greg Platt of Platt Appraisal Services. This valuation includes the half share in the North Poudre Water Company. As a result of the collateralization of the water share, the property has been valued as irrigated acreage.
LOAN TO VALUE RATIO: 40.2%
USE OF PROCEEDS: The borrower is using the proceeds to obtain a down payment for a ranch in Fruita, CO which is in Mesa County, approximately 10 miles north of Grand Junction. He is doing this because he is relocating to Grand Junction as a result of a job transfer.
METHOD OF REPAYMENT: The borrower has placed the property on the market, along with another 80 acre ranch he owns contiguous to this one, for a total (both properties of $1,550,000. The loan will be paid off when either or both of the two properties sell.
LOAN SUMMARY: 212 ACRE PARCEL NEAR COLORADO SPRINGS
LOAN AMOUNT: Total $215,000.
LOAN TERM: 3 YEARS
INTEREST RATE: 11%
PAYMENT TERMS: Payments will be interest only payable monthly. The lender will be guaranteed 6 months interest in the event of early pay-off.
SECURED BY: The property is a 212 acre parcel of vacant land in El Paso County, Colorado. It is located on El Hambra View Road in a mixed use development known as El Dorado Village. This is a 942 acre project off Interstate 25 between exits 119 and 122 south of Colorado Springs.
VALUE OF THE PROPERTY: The property was valued at $742,000 in December, 2013. This is based on a valuation of between $3,500/acre. The Realtor in Colorado Springs who did this valuation is with Keller Williams Client’s Choice Realty and has been in the business for over 30 years. He has sold property and built spec homes in the immediate vicinity of the subject property for 12 years. The owner has a tentative option contract to sell the property to a solar energy company at a price of $848,000 which is $4,000/acre.
LOAN TO VALUE RATIO: Based on the low per acre valuation of $3,500/acre the loan to value ratio is 29%
USE OF PROCEEDS: The borrower is using the proceeds to move and set up a number of manufactured homes that he owns on other lots and parcels within the El Dorado Village project. He will also be paying off an existing loan in the amount of $100,000.
METHOD OF REPAYMENT: The loan will be paid off if and when the option holder exercises his option to close on the property. In the event that the option holder does not close, then the owner will market and sell the property on the open market.
PAGOSA SPRINGS LOT LOAN SUMMARY
LOAN AMOUNT: $52,000.
LOAN TERM: TWO YEARS
INTEREST RATE: 11%
PAYMENT TERMS: Payments will be interest only payable monthly. The lender will be guaranteed 6 months interest in the event of early pay-off.
SECURED BY: A 5.02 acre parcel in the Pagosa Lakes Subdivision in Pagosa Springs, CO. Pagosa Springs is in Archuleta County, about 50 miles east of Durango.
VALUE OF THE PROPERTY: The property was valued at $116,000 in October, 2013 by Jessie Formwalt of Appraisal Services, Inc. in Pagosa Springs.
LOAN TO VALUE RATIO: 44.8%
USE OF PROCEEDS: The borrower has a $45,000 loan that he will be paying off.
METHOD OF REPAYMENT: The borrower intends to repay the loan using proceeds from his business. In the event that this source proves to be insufficient, he will obtain the funds from family members.
WHITEWATER LOAN SUMMARY
LOAN AMOUNT: Total $45,000.
LOAN TERM: 2 YEARS
INTEREST RATE: 11%
PAYMENT TERMS: Payments will be interest only payable monthly. The lender will be guaranteed 6 months interest in the event of early pay-off.
SECURED BY: A 3 bedroom, 2 bath 980 square foot manufactured home located on a 22.86 acre parcel on the Gunnison River in Whitewater. The property will be rented out. Fair market for this rental in the area is $600/mo.
VALUE OF THE PROPERTY: The property was valued at $87,000 in July, 2013 by Camey Whalen of ERA Heman Group Real Estate.
LOAN TO VALUE RATIO: 51.7%
USE OF PROCEEDS: The borrower is purchasing the home from his grandfather for $23,000 and moving the manufactured home onto the property. The loan proceeds will be used to purchase the property, purchase the home, and pay for the moving and set up costs.
METHOD OF REPAYMENT: The borrower has a credit score of 731. Once he has owned the property for a year, his credit and income will allow him to refinance and pay off this loan.
WEST GLENWOOD PROPERTY LOAN SUMMARY
LOAN AMOUNT: Total $225,000.
LOAN TERM: 2 YEARS
INTEREST RATE: 11%
PAYMENT TERMS: Payments will be interest only payable monthly. The lender will be guaranteed 6 months interest in the event of early pay-off.
SECURED BY: The property is a 3 bedroom, 2 ½ bath 3,036 square foot home of which 2,034 is finished. The property is on 1.6 acres. The home was built in 2002. It is located in West Glenwood, CO which is an unincorporated area of Garfield County west of Glenwood Springs.
VALUE OF THE PROPERTY: The property was valued at $459,000 in June, 2013 by a long time Realtor in Glenwood Springs.
LOAN TO VALUE RATIO: 49%
USE OF PROCEEDS: The borrower and her significant other are using the proceeds to purchase a home in Rifle, CO. The significant other is employed so the borrower has no living expenses. She receives $1,000/month in alimony and the property is rented for $1,600/mo.
METHOD OF REPAYMENT: It s the intention of the borrower to hold the property for at least a year as the market in the area is appreciating. After that, she will either sell or refinance.
ADDITIONAL DATA: A Broker’s Property Opinion letter as well as the Assessor’s Office summary, comparable sales data, and pictures are available to interested parties upon request.
These summaries are typical of the hard money loans funded by Silver Jack Capital.
COMMERCIAL PROPERTY LOAN: GRAND JUNCTION, COLORADO
LOAN AMOUNT: Total $50,000.
LOAN TERM: 1 YEAR
INTEREST RATE: 12%
PAYMENT TERMS: Payments will be interest only monthly. The investor will be guaranteed 6 months interest in the event of early pay-off.
SECURED BY: Commercial property in Grand Junction, CO. The subject property consists of 3 buildings on .76 acre. The property is zoned commercial. There is a 3,200 square foot building being used as a convenience store. The tenant pays $700/mo. rent. There is also a 3,200 square foot metal building with an 800 square foot attached garage. The owner currently occupies this building. The third building is a 1,500 square foot building used for storage. It is rented for $400/mo.
VALUE OF THE PROPERTY: The parcel is valued at $276,500. The property was evaluated by an experienced Realtor in Grand Junction in July, 2012. A copy of his BPO (Broker Property Opinion) report is available.
LOAN TO VALUE RATIO: 18%
USE OF PROCEEDS: The borrower is using the proceeds of the loan to pay back property taxes and to pay for the removal of a storage tank.
METHOD OF REPAYMENT: The borrower has listed the property for sale with a Realtor in Grand Junction. She also has a property in Arizona that she has listed for sale. The lender will be repaid out of the proceeds of whichever property sells first.
COMMERCIAL LOAN SUMMARY: DELTA COUNTY, COLORADO
LOAN AMOUNT: Total $110,000.
LOAN TERM: 18 MONTHS
INTEREST RATE: 12%
PAYMENT TERMS: Payments will be interest only payable monthly. The lender will be guaranteed 6 months interest in the event of early pay-off.
SECURED BY: A 10,036 square foot commercial building of which 8,696 square feet are finished. The building is located in Delta County, CO. The building is a mixed used property. It is a combination of retail, motel, and rental. The retail uses are a Laundromat and a small convenience store.
VALUE OF THE PROPERTY: The property was valued at $250,000 in December, 2011 by a Delta County based Appraisal Service.
LOAN TO VALUE RATIO: 44%
USE OF PROCEEDS: The borrower is purchasing the building for $200,000. The loan proceeds are to be used towards the purchase.
METHOD OF REPAYMENT: The borrower has a 700+ credit score and good income. He intends to refinance the property after he has a year’s operating results. He has been advised by a local lender that they will do the refinance once he has a year’s operating results.