The collateral for this loan is approximately 26 acres of land that will consist of 244 townhome lots located in Cypress, TX (approximately 25 miles northwest of Houston, TX). Most of the 244 units are presold as investment properties to the borrower’s clients. The final plat map is in the process of being approved by the city and is a condition to closing that must be satisfied to the buyers liking before closing will occur. It is anticipated the borrower will refinance this loan into a development loan within 100 days after closing at which point, they would have already completed over $1,000,000 of site work. This loan will have pay-downs once the development work is completed but before the construction work begins.
Loan Amount: $2,600,000
Yield: 10.5% (Principal Balance ≥ $100,000); 10.0% (Principal Balance < $100,000) Interest is paid monthly in arrears with payments due on the 1st of each month with a 10-day grace period.
Term: Nine months with an optional nine-month extension at maturity.