The collateral for this loan consists of two finished condo lots, which will contain eight condos each, located in Highlands Ranch, CO (approximately 17 miles south of Denver, CO). These 16 units represent all the units within the community that are currently being constructed. The borrower initially purchased 128 partially finished lots in 2017 and has since sold 64 with an average sales price of $280,000. In total, the borrower still owns 64 lots, 16 of which are currently being constructed. The borrower anticipates selling out of the community within 26 months. This loan is in a junior lien position to bank financing which is being used for the construction of the condos.
Loan Amount: $976,000
Yield: 11.0% 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 9-month extension at maturity.