Posted by Cy on October 12, 2009 at 22:54:01:
I'm a licensed real estate broker in California. I'm about to underwrite a new loan on few dozens of acres of a coastal property.
Owner is planning to harvest the top soil that is rich in minerals used by silicon valley high tech industries. He'll then replace & fill dirt and eventually subdivide for mixed use high end residential and commercial use.
This 25 acres property is located in southern California, beach front, between Malibu and Santa Barbara.
The owner claims it's worth more than $30 million dollars.
In order to secure this loan without getting further involved with borrower's plan and avoid over-investigating and conditioning this loan to death, I've requested additional property to be cross collateralized with this loan. He agreed to let me cross a second property.
The second property is also free & clear and is a strip shopping center located in a sizzling hot orange county beach city, that the borrower owns which worth about $6 million dollars.
So, this is a blanket loan in the amount of $5,000,000.
This loan is for 36 months, 12% interest only rate, no pre-payment penalties, it will be insured under CLTA title insurance policy. This loan is a straight bullet loan meaning there is only one payment due at maturity of the loan.
The normal monthly interest payments of $50,000 will be accumulated and compounded and at maturity a balloon payment of $ 7,153,843.92 shall become due and payable to the beneficiary of this Note, or the buyer of this Note.
Note is written pretty much at par quality. But, I encourage interested parties to share the above information with your own investors and bring me offers to buy Note.
- Re: Very Large Note $ 5,000,000 Michael Morrongiello 01:06:01 10/13/09 (0)