- 56 - Although the loan is current, Mr. Marsh estimates that he could only get $0.70 to $0.80 on the dollar for a 100% interest, and perhaps $0.60 to $0.70 for a 45% interest (due to liquidity factors). Based on the above, we conclude that the fair market value of the Marsh note is $300,000 (approximately 65% of $450,000). ii. Mr. Thomson’s Report Mr. Thomson in his report preceded valuation of the Marsh note with a discussion of certain factual assumptions underlying his analysis. The report refers to the $1 million note as equating to “more than 2 to 1 coverage” for the Marsh note and mentions personal guaranties by Mr. Marsh and Mr. Goldstein. Mr. Thomson also addresses several items relating to the security for the $1 million note; namely, the value of the mobile home park, the existence of any prior liens against the park, and possible environmental issues pertaining to the park. Mr. Thomson appraised the 410-unit mobile home park and concluded that it “could command a price of $40,000 to $50,000 per unit or $16.0 to $20.0 million based on other mobile home park sales we are familiar with in Southern California.” As regards potential prior liens, the report states: We requested any other Trust Deeds (notes), if any, against the Carson Harbor Village Mobile Home Park which may have a senior position to the $1,000,000 Deed of Trust. However, we were not provided any data on this request from the taxpayor [sic]. We did obtain a property profile from Chicago Title which showed no recorded liens as of the appraisal date.Page: Previous 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 Next
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