First Trust Deed collateralized by a seven-acre parcel of land approximately 50 miles southeast of downtown Salt Lake City, UT and 20 miles south of Park City, UT. The borrower is under contract to acquire this 3,700 square foot home and the remaining acreage from the trustee of the estate. Once they own the property, they will work with city officials to get the property subdivided into five additional lots. Each of the five newly created lots will be over an acre and be valued at nearly $200,000 each. As a developer and builder himself, the borrower will complete the land development of the newly created subdivision and built through the community. Preliminary discussion with the city about the subdivision have been positive and the borrower anticipates getting fully approved in three months.
Master Loan Amount: $1,500,000
Yield: 10.00% (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: 9 months with an optional nine-month extension period at maturity.
