5899 Stonewall Dr

The seller, Tyler Robertson with Benton Assets LLC, has owned this property since April, 2021, and is selling a portion of his property's equity on the Lofty Marketplace.

The property has a loan balance of $138,500 and the lender has approved the owner to sell their equity. The loan documents can be viewed here. The seller must continue to make monthly payments on their loan balance, as the lender has first lien on the property. Investors on Lofty do not pay a portion of the debt payments.

The Rental Yield of 10.75% is based on the value of $154,950 (Total Investment Value - Debt). As the seller pays down their debt over time, their equity percentage in the property will increase and the equity percentage of Lofty investors will decrease proportionally. As a result, the Rental Yield for investors on Lofty will decrease as the debt is paid down. The Rental Yield once the loan is fully paid off is projected to be 5.7%.

Click here to learn more about how property owners sell partial ownership of their properties on the Lofty Marketplace.

Single Family Home located in Harrison, Tennessee.

Details

• Renovated 3 br, 2 ba home located just outside Chattanooga, Tennessee.
• Built in 1976
• Renovations made by the seller include:
  • Some new flooring
  • New appliances
  • New paint inside and out including fireplace and enclosed porch
  • Deck repairs
  • Some new lighting
  • Landscaping
  • New glass door
• The seller purchased this property in April, 2021 for $104k as a subject-to purchase. The price reflected the existing loan the seller took over plus a payment of $25K. The seller advised the property was likely worth $185k at the time of the purchase, and the market has appreciated since.
• The seller is providing a credit of $2,946.99 to repair the items in the Inspection Report Repairs document.
• View Operating Reserve balance chart
• View property transaction data

Property Management and Insurance

• Managed by Evernest Institutional Services
• Insurance Policy from Great American E&S Insurance Company

Occupancy Status

• Vacant
• Property Manager will perform a move-out inspection & obtain a turn estimate.
• Owners will continue to receive daily rent until a new lease begins.

Location Data

• 3.5/5 Neighborhood Rating on Roofstock
• "B+" Rating for Zip Code on Niche

Due Diligence Documents

• QuitClaim Deed
• HouseCanary Property Valuation Report
• HouseCanary Agile Evaluation
• Inspection Report
• Inspection Report Repairs
• Owners Statement (2023)
• Income Statement (2023)
• Operating Agreement
• View All Documents

Property Updates

• Property Update (12/12/2023):

  • Governance results:
  • The Governance Voting results are back for the vote for the original owner, Tyler, to buy back tokens from all investors for $55/token, which is approximately a 12.6% return in 3 months.
  • The winning vote is:
  • Sell your tokens for $55/token (no fees) for approx. 12.6% return in 3 months.
  • This was voted on by 41 participants in total. Out of the total number of participants, 36 voted to sell the tokens back totaling 60% of the voting power. This is a partially tokenized listing, which means the governance mechanism used the scaled governance calculations as opposed to the default of 1 token equals 1 vote.

• Property Update (12/05/2023):

  • Governance Vote:
  • The seller, Tyler Robertson, has decided he wants to do a 1031 exchange with this property rather than sell a portion of his equity over time. As a result, he wants to liquidate the entire property ASAP and start fielding purchase offers.
  • In order to appease the current investors, Tyler is proposing a Governance Vote to buy back tokens from all investors for $55/token. There would be no fees with this re-purchase.
  • This would be a 10% increase in appreciation on top of the daily rent of ~10.5% received since launch on 9/15. This takes the total return to around 12.6% in a 3 month period.
  • In order to receive the funds, you would simply send the tokens back to the Lofty burn wallet.
  • Once we receive your tokens, you will receive your funds, based on your pro-rata share of ownership, to your bank account on file via ACH transfer. If no bank account is on file, you will receive your funds to your Lofty Wallet as USDC. Step-by-step instructions will be provided if the vote passes.
  • This offer is only extended to users that invested before December 5th, 2023 at 3pm PST.
  • The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to all owners on Monday, December 11th once the voting period ends.

• Property Update (11/18/2023):

  • The Property Manager provided a turn estimate of $1,342.81 and an estimate of $5,615 for the insulation work in the crawlspace & attic.
  • Turn Estimate
  • Insulation Work Estimate
  • The PM received another estimate from another vendor for the insulation work for $4,405.63, but advised that the first vendor does a better job in their experience and are far more timely with completion, alongside having a more extensive repair estimate for the insulation repairs.
  • The additional repairs in the first estimate include:
  • Install filler plates in electrical panel where needed
  • Tighten all connections in electrical panel and secure wires
  • Run a drain machine and hydro jetter into the tub to clean out the pipes
  • Inspect and service the HVAC unit (check drain lines/pans, thermostat settings, electrical connections, pressure lines, coils, motors)
  • Change the air filter - 20x25x1
  • The tenants paid an early termination fee of $3,400 and forfeited their security deposit of $1,800. These funds will be applied towards the repairs.
  • The remainder required for the repairs is $1,757.81, which will be split between the original owner, Tyler, and investors on Lofty based on the equity ownership percentages.
  • Tyler currently owns 80.31% of the equity and will contribute $1,411.69 towards the repairs. Investors on Lofty own 19.69% of the equity and will contribute $346.11 from the Operating Reserve.
  • Owners will continue to receive daily rent until a new lease begins, via a rent credit.

• Property Update (11/04/2023):

  • The tenants moved out on 11/01. They paid an early termination fee of $3,400 and forfeited their security deposit of $1,800.
  • The original owner, Tyler, will be providing a credit for daily rent to all owners until a new lease is signed, due to the unexpected move out.
  • The tenants explained to Evernest that there were pest issues, and the insulation & air ducts were poor.
  • None of these issues were ever brought up by the tenants to the previous PM, Tyler, or the new PM until days before the tenants moved out.
  • The PM and Tyler are further investigating these issues.
  • Evernest will complete a move-out inspection and provide a turn estimate for repairs and a target rent.
  • The original Inspection Report from 8/30 revealed $2,946.99 worth of repairs, per the Inspection Report Repairs document, and Tyler provided a credit for these repairs. These repairs will be made alongside any turn repairs.
  • The early termination fee & security deposit will be added to the Operating Reserve & will go towards the turn repairs.
  • If there are additional repairs required, 90% of the repairs will be paid for by Tyler out-of-pocket, because he still owns 90% of the equity. 10% of the repair costs will come from the Operating Reserve.