Program: Private Money
Property Type: Commercial Lot
Cross Collateral: 2 Investment Properties
Property Location: Texas
Loan Purpose: Acquire Commercial Land to Construct Warehouse
CLTV: 55% 'Combined Loan to Value'
Loan Terms: 3 Year Note, 12% Rate & Interest Only
Situation: Our client was in the midst of purchasing a commercial lot when the purchase contract expired and the seller was about to pull the deal. We had to move quickly before our client lost the option to the purchase land. To strengthen the deal and increase the loan amount, our client put up additional investment properties to utilize as cross collateral. This minimized investment risk and limited the amount of funds client needed to bring to closing. Our client intends on getting the needed property improvements in place to build a light industrial warehouse.