1. PFS 12/31/2011 12/31/2012 Adjusted 12/31/2012 Comments
ASSETS Adjusted version ratios
Liquid Asset total liquidity
Cash (1) $500,000 $575,000 $450,000 there is $125M in YBA deposit (not cash.) Always verify liquidity $1,350,000
Marketable Securities (2) $2,675,000 $900,000 there is $1,775M = value of PAs 34%
CVLI $50,000 $50,000 $50,000
IRA $40,000 $40,000 $40,000 Can the client access this liquidity?
Real Estate Owned $4,225,000
Residence $1,875,000 $1,925,000 Do you have a current appraisal or comparables?/Adjust Value
1 Lot $800,000 $400,000
Office Building $1,900,000 $1,900,000
Sevierville Ranch $1,100,000
Real Estate Investments/ RE Partnerships $1,100,000
K-2 shopping Center (7%) $600,000 $650,000 Do you think the client could liquidate or access this value?
Mt. Vison Shoppting Center (10%) $400,000 $450,000 Do you think the client could liquidate or access this value?
Other Assets
Personal Property - auto, furniture, yacht (6) $630,000 $665,000 $665,000 Most banks deduct these from Adjusted NW
Other Assets $100,000 $125,000 $125,000 Most banks deduct these from Adjusted NW
Note Receivables (3) $370,000 $620,000 $620,000 Consider likelihood of these paying/when?/how much?
Other Assets - YBD deposit $125,000 What are they buying? What liquidity?
Closely Held Companies (BL PA, DL PA) $1,500,000 $1,775,000 Most banks deduct these from Adjusted NW/ Lack of liquidity
Closely Held Business - Wing Travel $175,000
Total Assets $10,040,000 $10,075,000 $10,075,000
LIABILITIES
Line of Credit $250,000 $300,000 $600,000 Client provided information that this line is $600M (only $300M o/s)
Other Note Payable (7) $260,000
Auto loans $50,000 $70,000
Boat loan $200,000 $190,000
Mortgage Debt (8) LTV
shortfall from
requested
amount
Residence $1,300,000 $1,250,000 $1,540,000
Client wants $500M more, but based on the value of the property
they don't qualify (loan assumes 80% LTV) 80% $210,000
Office Bldg $1,600,000 $1,560,000 $1,425,000
We need to refi the $160M sellers note + the $1,560M/ Most banks do
not lend more than 75% LTV on owner occupied 75% $295,000
Lots $400,000 $200,000 $200,000 $505,000
Total Liabilities $3,800,000 $3,570,000 $4,025,000
Net Worth $6,240,000 $6,505,000 $6,050,000
Adjusted Net Worth Calculation
Deduct
Personal Property $630,000 $665,000
Other Assets $100,000 $125,000
Notes Receivables $370,000 $620,000
Other Assets - Deposit $0 $125,000
Closely Held Companies (BL PA, DL PA) $1,500,000 $1,775,000
Closely Held Business - Wing Travel $175,000
Total amount to adjust from out of NW $2,775,000 $3,310,000
Adjusted Net Worth $3,465,000 $2,740,000