The properties consist of 7.5 acres of land which was purchased by the borrower in 2016 from the Bureau of Land Management (BLM). Since that time, the borrow has gone through many different rounds of negotiations with the county over land use to get the property rezoned. As of today, the plan is getting a rural subdivision approved to allow for the development and construction of 13 homes. It is anticipated that the property will be fully entitled and ready to develop by the end of the year at which point the borrower will enter into a joint venture agreement with a local homebuilder.
Loan Amount: $1,150,000
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: Six months with an optional six-month extension at maturity.