Financial Compound arranged a land acquisition and entitlement loan for 4,000 acres of land in southern California. The borrower intends to divide the parcels into approximately 450 home sites and a private golf course. Should the borrower obtain all approvals for this subdivision the land should be worth $690 million making the loan-to-value 5%.
The terms of this hard money commercial loan included a 12% interest rate, and 6% lender fee. The loan is non-recourse.
Also see: Land Loans