Recently Closed Private Money Loans

Land-Only Loan:

• $204,815 loan amount
  • This loan is secured with nine properties totaling approximately 409 acres.
  • The total tax assessed value of the 409 acres was $278,100.
  • 74% of tax assessed valuation.
  • The applicant’s conservative valuation of the nine properties, $570,576.
  • 36% of the borrower’s stated valuation.
• Loan proceeds were intended to segregate much of the 409 acres into 20 acre building sites, construct roads and bury power to 20 acre building sites with lake view.
  • No appraisal was required.
  • The applicant is a land developer.
  • His intentions were to use loan proceeds to develop roads, bury power and segregate larger parcels into 20 acre building sites with lake views.
  • The applicant has a history of selling these 20-acre properties.
  • The previous year the developer sold seven properties. Total sales $621,899.
  • Two years ago, the applicant sold three properties. Total sales $191,500.
  • Three years ago, the applicant sold three properties. Total sales $163,500.
  • Based on the applicant’s history of land sales, the lender approved the loan without the expense of a costly appraisal.
• The loan is structured with partial release clauses and substitution of collateral clauses.
  • Presently three real estate contracts pay 100% of the monthly payment on this land development loan.
  • Each seller financed contract has appropriate Requests for Partial Reconveyances and Warranty Fulfillment Deeds in escrow.
  • One larger parcel was sold and a Partial Reconveyance was filed in consideration of a modest principal payment.
  • One larger parcel was sold and a Partial Reconveyance was filed in consideration of a modest principal payment.
• Both the borrower and the lender are happy with the end result of this win-win loan scenario.