Developer's Capital
Direct Money Lenders offer several varieties of solutions
for builders & land developers. We are looking for experienced,
quality sponsors, and corporate institutions that have opportunities
to acquire or refinance stalled land projects from local banks, thrifts,
or other hedge funds at a relatively low loan to value. We would also
consider refinancing existing performing notes, trust deeds, or mortgages
for cash out or development so long as there is enough equity in the
project and the exit strategy makes since.
Our borrowers usually don't meet the bank guidelines in one way or
another. The closings are fast - If the situation fits our loan parameters
and it makes sense, then it is very likely we will offer you a loan
solution.
We look for real cash and or equity into the deal. NO 100% financing.
We will give you a quick and common sense answer.
TARGET SPONSOR & DEAL PROFILE:
Small, midsized, to large private or public builder/developers
with a successful and proven track record of turning or developing
residential subdivisions. PUD's, or commercial land opportunities
within their respective markets.
Established markets 50,000 or greater population
are preferred but, will consider other sub markets. - Rural properties
are difficult - The market should display positive population and
employment growth.
The development is typically either a stalled project,
bank owned REO, or ballooning note with most, if not all, of the horizontals
completed.
All opportunities should contain either full or partial
entitlements. If your project not that advanced, please consider another
variety of our land loan products such as Raw
Land Loan or Commercial Land loan.
Call us today - 317-663-3153 - Most Well
Located Commercial & Residential Property Types will be Considered!
Residential Land Loans General Guidelines:
| Eligible
Properties |
Purchase - Refinance
- Cash out - Bank owned, REO properties, Stalled residential subdivisions,
Ballooning notes |
| Minimum Loan Size |
$500,000 - $20,000,000+ |
| Pricing |
12.99% - 13.99% Interest only
- 5% - 7% Origination points (paid at closing) |
| Loan Terms |
12 - 24 months from initial investment |
| Prepayment Penalty |
None |
| Personal Guarantees |
NO - Non-recourse format |
| Loan-to-Value |
50% AS-IS maximum LTV- As completed
LTV is not typically considered |
| New Equity (cash) Requirements
|
Typically no new cash for Refinance
or cash out - Purchase minimum - 10% - 20% of total projected
cost |
| Third Party Reports |
Appraisal - Collateral value
opinion
Reliable Phase I environmental report (older report can be used
if property does not display obvious signs)
DML Property inspection (required)
ALTA land survey |
| Preliminary Submission
Package For Residential Land Loans: |
1.Well written summary of the property description, current
entitlement status and goals
2. Representative color aerial photographs - (6 - 7 preferred)
3. Sources & uses
4. Sponsor(s) resume
|
