Land Closed over 100% of Purchase Price

Loan just closed for a $1,705,000 land loan on a 10.66 acre site in Maryland. When the borrower, entered into a contract in 2014 the site was raw land. Over the next two years the borrower successfully had the property rezoned allowing for 175 apartment units and 57 town home units.

The difficulty for the borrower was finding a lender that would lend based on the value of the collateral and not the purchase price. We saw the potential of the project and were able to lend on the value of the collateral and not the $900,000 purchase price, therefore lending over 190% of the purchase price. The borrower was able to acquire the property and have additional funds for infrastructure improvements and working capital.

If you have a project requiring quick funding please give me a call as there is still enough time to close in 2017!