Whitaker Farm Development, LLC #4616 | UTAH – FUNDED

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Whitaker Farm Development, LLC #4616 | UTAH – FUNDED

First Trust Deed collateralized by roughly 80 acres of farmland which will be developed into 50 estate sized lots. Since working with the land seller about a year ago, our borrower has been working with the city to get approval for the development of a 50-lot residential development. As one of the last projects located along the Provo River, the projects has already drawn a tremendous amount of interest. With only the aid of a website and no real marketing efforts, the project is already more than half reserved. These reservations include all the high-priced lots next to the river. Although the borrower has taken many reservations, no earnest money deposits have been taken in accordance with Utah law. Once the development agreement is adopted by the city, the borrower will legally be allowed to accept earnest money deposits. The city will adopt the development agreement once the development funds are paid. In total, about $6,000,000 of the loan proceeds will be used for the development bond which is the final step to move toward moving dirt and taking nonrefundable deposits from the lot buyers.

Loan Amount: $12,500,000

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 one optional 6-month extension period at maturity.

By |August 5th, 2019|Funded Investments|0 Comments