Real Estate Investor Financing Real Estate Investment FIN

Real Estate Investor Financing Real Estate Investment / FIN 467

Agenda • Property acquired • Potential lenders. o Bank of America o Quicken Loans o Lending Tree • Loan comparison table. • Lender used for investment.

Property Selected • The property I have selected is 536 Thornton Ave, San Francisco CA 94124. This property is selling for $2. 45 M. It is a 10 Unit Multi-Family located in the heart of San Francisco with access to three major Freeways. It is in a safe neighborhood with a police department a few blocks away. There is access to several commercial stores and goods also a few blocks away. Rent for each unit a month will yield approximately $420 K a year. Entirety of finance and Investment return can be upwards up $450 K-500 K a year after the 5 th year when the balance of the note is paid off.

Bank of America • • Commercial Real Estate Loans Are Offered Finance Amount From $25, 000 - $2, 000 10 Year Balloon Or 15 Year Full Amortization Rates Based Off Prior Relationship With Bank Of America

Quicken Loans • Commercial Real Estate Loans Are Offered • Finance Amount From $25, 000 - $3, 000 • Available terms ranging from 8 to 30 years

Lending Tree • Real estate investor loans: Available • Loan limits, $2. 5 million • Structures: Single Family, Commercial, Multi-Family • Terms 15/30 • Rates as low as 4. 1% • Required ratios 20/80 • Other conditions: 720 credit score

Loan Comparison Mortgage Summary Bank of America Quicken Loans Lending Tree Loan Amount 1, 960, 000 Term 30 years Interest Rate 3. 875% 4. 106% 4. 100% Annual Home Insurance 5, 400 Annual Property Tax 12, 200 Monthly Payment (PI) 9, 217 9, 478 9, 471 Monthly Payment (PITI) 10, 683 10, 944 10, 937 Total Principal and Interest first 5 years Principal after 5 years $ 552, 999. 00 $1, 769, 167. 71 $ 568, 650. 60 $1, 775, 788. 54 $ 568, 241. 40 $ 1, 775, 618. 48

Conclusion • Bank of America offers a lower rate due to history of banking with them • Lending Tree and Quicken Loans are both extremely close and are a great 2 nd and 3 rd option if something were to fall through with Bof. A • We will be moving forward with Bank of America and taking advantage of their client incentives