Real estate professionals specializing in land sales in Southern California and Mojave County, AZ sought a 1st TD business purpose Funds Control + cash out loan on this “free & clear” riverfront, two adjoining parcels of vacant land on the western California banks of the Colorado River, less than 1 hour from Lake Havasu in Needles, San Bernardino County, CA. All funds from this loan will be invested into soft costs associated with this residential development project, including dividing the subject property into 6 separate residential “estate” lots. The new residential community will feature its own private beach, private boat dock and a private gated entrance. Exit strategy: construction loan and/or sale of one or more of the divided lots.
The subject property is very well located on the popular recreational watersport and secondary home community on the Colorado River along the edge of the California and Arizona border. The subject property is near the US 95 FWY Colorado Bridge that connects CA to AZ. The subject property is currently two parcels consisting of 6.00 acres that will be divided into 6 saleable residential “estate” lots. The subject property is less than 1 hour from Lake Havusa, near local casinos and just 5 miles from shopping, restaurants, schools.
Funds Control provision on these “soft” costs. We will hold back half of the cash out in Funds Control until borrower provides a City Approved “Lot Line Adjustment” and “Tentative Map” – once proof has been received and verified then our Funds Control 3rd party will release the balance of funds for property improvements, artist renderings, etc. During that time you will still earn interest off the FULL amount of loan.
$500K in improvements have been made to subject property to date – electrical brought to property though Edison, concrete reinforcement along river edge, approx. 1,400 SF in concrete wall, septic well and water well on site.
What we like about this Trust Deed opportunity:
- Real Estate Agents are the borrowers and they specialize in land sales in subject property area
- “Free & Clear” riverfront subject property on the popular recreational Colorado River
- 25.00% LTV, 21.25% Net LTV on Recent “As Is” Appraised Value
- 13.50% Annualized Investor Return
- 6 months Guaranteed Interest
- 12 months Prepaid Interest
- $1,717,500 gross and $1,803,318 net protective equity to investors
$572,500 1st TD @ 13.50%, 25.00% LTV, Land, CO, $57,250 Min Inv., Needles, CA
