First Trust Deed collateralized 11 acres of residential land situated just west of Interstate 15 in Riverton, Utah (approximately 24 miles south of Salt Lake City, Utah). The borrower acquired the site in 2013. During the past four years the borrower has been working with the city to get the site approved for 14 semi-custom lots. Development work on the 14 custom lots is estimated to cost $900,000. This means the developer would have a finished lot cost of $136,000 per lot. Finished lots in the adjacent community have been selling up to $300,000 per lot. This leaves the borrower in a great position to build and ultimately sell homes on the site for below market rates and still make a healthy profit. Proceeds will be used towards the refinance of the property, including closing costs and fees, prepaid interest.
Loan Amount: $695,000
Yield:(principal value > $100,000): 10.25%
Yield:(principal value < $100,000): 10.00%
Term: Six Months with one optional six month extension at maturity.
These investment are on a first come, first serve basis.