Current Deals Available!
Principals only, no broker please

Hello,

Background:  Fresno is located half-way between Los Angeles and Sacramento; about 200 miles from either.  Fresno has enjoyed very large growth recently (over the past 4-5 years) and real estate prices topped about a year ago and values have been dropping steadily for at least the last few months now.  That said, there are some real good deals available as a lot of foreclosures are available through auctions and bank repos.

WHO:  This loan has many borrowers because the land being purchased will be in a "partnership" and we will be cross-collateralizing several other properties, owned by these partners.  The partners are:  (1)  a long time borrower and fix-and-flip expert in Las Vegas, (2) loan officers and realtors in Fresno that have structured this deal and plan to sell and finance the finished product, (3)  a Reedley City Councilman and zoning and permitting expert, and (4) a contractor that does on and off site work such as street, curbs, gutters, fire hydrants etc.

WHAT:  This is an ACQUISITION loan only.  These partners will purchase 4.8 acres in Kingsburg, a highly affluent city in the greater Fresno area.  We will have a first deed of trust for $1,350,000 encumbering both this property and another vacant 18-acre lot that is also in the Fresno area.  Additionally, we will have a second deed of trust on three single family residences, all in the Fresno area, all with around $150K in equity.

WHERE:  All of the properties are in the greater Fresno area.  The APNs and addresses are:
1.  Kingsburg:  396-020-17
2.  Orosi (18ac): 023-010-019
3.  Reedley:    319 W. Huntsman
4.  Reedley:    459 S. Sunset
5.  Reedley:   1172 E Duff Ave

WHEN:  This loan MUST be funded by Friday, September 8, 2006.  They have already put up $20,000 EMD that has been released to the seller and they have to put up another $10,000 by this Friday.  They have extended the close date three times and the seller is no longer willing to continue to extend, even with $10,000 going "hard" every couple of weeks.

WHY:  The partners, all with real estate backgrounds and very long histories in Fresno, feel that this land will sell for $250K per lot after all of the infrastructure is installed.  After the infrastructure is in at an estimated cost of $540K, they will have 18 sellable lots.  If all goes well, in six months all of the infrastructure should be in and most of the lots should be "presold" to small custom builders and individuals looking to build.  They plan to be completely out within one year with more than a $2M profit.

DETAILS:
1.  The borrowers make a "dream team" with realtors, financiers, a councilman, contractor, and investors,
2.  The borrowers are so confident that they are letting us cross-collateralize their already owned property,
3.  Duration:  1-year,
4.  Rate:  12% I.O. annually with six months prepaid,
5.  LTV:  50% (cltv)  $1.35M / $2.7M equity,
6.  Besides putting up more than $1.3M in equity, they will put up close to $200K in cash at cloing,
7.  Tentative map has been approved and counsilman is confident that final will be approved within 60 days,
8.  The borrowers, for the most part, are very wealthy and will be personally guarantees on the loan.

This is an excellent loan due to the low LTV, pre-purchase preparation already completed, and of course the huge equity in this property and their other properties. Please note that prepaid interest boosts yield and also lowers the true LTV.

This is a good opportunity to lock up money at a ridiculously high rate for a full year with almost no chance of being paid off before August '07.

Our payoff will come in the way of sales of subdivided lots.   We could also be paid off via a refinance of this or any of the other properties should the subdivision process take longer than expected or if sales are sluggish. 

Fill out the form, and you'll be contacted as soon as possible.

INVESTORS: ACT NOW - Fill Out The Form Above

Fill Out This Form Now First Name Last Name Address City State Zip Phone   Email Comments