Hard Money Lenders Move Fast To Fund Land Loans
— Criittendens Developers Financing News - November 3, 1997
Mountain Funding Closes JV Funding With G&L Development $11.4M
— New York Real Estate Journal - July 15, 1997
Hard Money Lenders Move Fast To Fund Land Loans
— Crittenden's Developers Financing News, Nov.,1997
Single Family developers who need quick cash to close land acquisition deals can count on private hard money lenders to fund more 12-36 month loans for subdivisions and condo projects coast to coast. Borrowers can use more loans to complete land purchase and take the project through lot development.
Private lenders Mountain Funding LLC, will price most of their deals with a combination of rates, fees and/or equity kickers to deliver overall annual returns of 20% or higher. But these firms can often close deals within a matter of days. This can be critical for developers who don't have time to go through the lengthier process of securing conventional bank loans. Even the most aggressive banks typically require at least four weeks to close a land A&D commitment.
A United Home affiliate needed just four days to secure a $3.8M loan from Mountain Funding to complete the purchase of 160 acres of land in the Chicago suburb of Round Lake, Ill. United Homes owner the land but wanted to get it off its balance sheet by the September 30 end of its fiscal year. So it sold the parcel to a newly formed limited liability company. The Lake County land is slated for a 522 lot for sale housing project to be known as Brooks Farms.
Lot Sales and Home Construction
Mountain Funding charged a 3 % commitment fee and priced its loan for United Homes at 12% plus performance-based kickers that it expects to boost overall returns to 32%. The New LLC can prepay the loan without penalty after accruing one years interest.
United homes hope to complete the infrastructure work at Brooks Farms project by spring of 1998. The new LLC will sell improved lots to its parent company and other builders. United Homes will build a mix of detached single family homes, 1,200 s.f. patio homes and 900 s.f. townhomes. Detached homes will measure 1,400 s.f. and up with prices starting at $135T. Patio Homes are slated to sell for $119T and up and townhomes for $100T and up.
East Brunswick, N.J. based, Mountain Funding LLC, specializes in funding mortgages for residential developers selling land acquisition and development financing. The firm typically writes 24-36 month nonrecourse loans of $3M to $25M with LTV up to 70%. Developers can expect Mountain Funding to fix rates in the 12%-16% range plus a 3% commitment fee and share of profits or additional interest.
MFI Closes JV Funding with G&L Development
— New York Real Estate Journal, July,1997
Sparta NJ, Mountain Funding Inc, a real estate investment company, has closed a joint venture with G&L Development Company to develop a 40 lot custom home subdivision development, according to Peter Fioretti, chief executive officer of Mountain Funding LLC The real Estate investment firm provided an $11.4 million mortgage buyout and construction loan to the developer.
Based in East Brunswick, Mountain Funding is a real estate investment company that provides debt and equity capital for medium and large size development projects.
Mountain Funding provides financing nationwide for various types of projects with a focus on for sale residential development projects.
|
|
