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yhomeloanletter2 - 1432 Sara Ave, Akron, Ohio 44305.pdf

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Loan Presentation: Capital Call vs. YHome Loan for Property at Sara Introduction In this presentation, we will compare two financing options for the property at Sara: Loan 1, which represents the current capital call, and Loan 2, the YHome Loan designed to support the property. Our goal is to highlight the benefits of the YHome Loan in addressing the unique challenges faced by this property. Loan 1: Current Capital Call • • • Loan Amount: $15,000 Interest Rate: 15% annually Loan Term: 5 years •

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Loan Presentation: Capital Call vs. YHome Loan for Property at Sara

Introduction
In this presentation, we will compare two financing options for the property at Sara: Loan
1, which represents the current capital call, and Loan 2, the YHome Loan designed to
support the property. Our goal is to highlight the benefits of the YHome Loan in addressing
the unique challenges faced by this property.

Loan 1: Current Capital Call
•
•
•

Loan Amount: $15,000
Interest Rate: 15% annually
Loan Term: 5 years

•

Compounding Frequency: Monthly

Key Features:
•

Monthly Payments:
o Monthly interest rate: 15%
o Total number of payments: (60 )
o Monthly payment: 50%

•

Total Amount Paid Over 5 Years: $ 23,130.00

Considerations:
•
•

Closed Line: This loan structure requires a capital call for any additional funds in
the future, which may delay necessary repairs and create cash flow challenges.
Higher Total Cost: The total expense over the loan term is significant, which can
impact the property’s financial health.

Loan 2: YHome Loan
•
•

Loan Amount: $15,000
Interest Rate: 6.99% annually

•

Loan Term: 5 years

•

Upfront Fee: $1,500

Key Features:
•

Total Amount Paid Calculation:
o Total amount after 5 years: $ 21,216.00
o Total amount including upfront fee: $ 22,716.00

•

Flexibility:
o The YHome Loan allows for an open line of credit, meaning funds can be
accessed as needed without incurring additional fees for future loans.

Considerations:
•
•

Lower Total Cost: The overall expense is lower compared to the capital call,
preserving more cash flow for property management and repairs.
Support for Property Stability: The YHome Loan is specifically designed to address
the unique challenges of high-risk rentals, ensuring timely repairs and tenant
satisfaction.

Summary of Comparisons
Feature

Loan 1: Current Capital Call

Loan 2: YHome Loan