The collateral for this loan consists of approximately three acres of multi-family zoned land in Phoenix, AZ. The current owner purchased the property about two years ago and worked with the proper government officials to get the site approved for a 35 unit attached residential community. The homes will be developed and ultimately constructed in one phase. The development work has already begun and should be completed in about six weeks. Already completed are the underground wet utilities and the dry utilities have just been started. Even prior to the completion of the horizonal development work, the borrower and their general contractor will begin the vertical construction of all 35 units. It is anticipated that the whole project will be completed in approximately nine months. Subsequent tranches of this loan will be used to complete all 35 units of this project. The 35 units are all three bedrooms with 2.5 bathrooms covering 1,312 square feet of living space each.
Master Loan Amount: $9,600,000
Yield: 10% interest is paid monthly in arrears with payments due on the 1st of each month with a 10- day grace period. *For investments equal to or greater than $100,000 investors will earn 10.5%.
Term: Nine months with two optional extensions at maturity. Final maturity date is 2/11/26.