First Trust Deed collateralized by a 2.09 acre parcel of land that is currently zoned PUD for a Planned Unit Development. Back in 2008, the site was approved for a detached residential development consisting of a 12 lot subdivision. The borrower intents to acquire the property and get the map reapproved without changing any of the original terms of the tentative map. This process is anticipated to take four months. Once a new tentative map is approved, the borrower plans to sell the “paper lots” (land that has an approved tentative map) to a developer who will do the horizontal development work to get the site ready to have homes built on it.
Loan Amount: $200,000
Yield: 10.25% (Principal Balance ≥ $100,000); 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: Six months with one optional six month extension period at maturity.