Credit Evaluation School Instructor eBook - Oct 2023

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Borrower ‐ BELT PARTNERS, LLC, Guarantor(s) ‐ JOHN AND STEVE SAIL Renew balance of A&D Note, Originated 11/19/2017 for $13 million, matures 11/19/2020 1st Lien on remaining developed residential lots on Belt Hills Rd. Updated appraisal indicates collateral has lost significant value due to limited activity in the market and very few investors. Appraisal also notes significant value loss could occur if this is sold in distress. Marketing period lists 12 to 24 months. Sales have slowed, outlook not good, updated appraisal has LTV at 100%, guarantors have limited liquidity New industry entering area could spur activity, obtain additional collateral from guarantors, revise lot sale prices and percentages. Based on 80% of lot sales price

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