The collateral for this loan consists of four finished single-family residential lots located in Commerce City, CO (approximately 20 miles northeast of Denver, CO and 12 miles west of Denver International Airport). These four lots are part of a larger 151 lot community know as Buffalo Run Filing 7. Approximately 100 single-story ranch style homes have been sold in the community with an average price of $550,000. Filing 7 is the last take down within a larger community know as Buffalo Run that the borrower has already completed the development, construction, and ultimate sale of over 400 homes. The borrower has not begun construction on the four finished lots but anticipates starting construction within 30 days after origination of this loan. It is anticipated the borrower will completely sell out of the community within eighteen months.
Loan Amount: $400,000
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.