First Trust Deed collateralized by six fully developed roughly .33 acre residential lots located in Riverton, UT (approximately 17 miles south of downtown Salt Lake City, Utah). Loan proceeds will be used for the acquisition of the lots. Situated directly east of Riverton Elementary School, the property is currently owned by the school district as a way to teach students about land development and home building. Since the program was dissolved a few years back, only three of the twelve lots in the community were actually built. The borrower anticipates being in a position to build homes in the next two months at which point they will begin to pay down the acquisition loan.
Loan Amount: $1,375,000
Yield: 12.00% (Principal Balance ≥ $100,000); 11.75% (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.