Land-Only Loan:

• $204,815 loan amount
• This loan is secured with nine properties totaling approximately 409 acres.
• The total tax assessed value of the 409 acres was $278,100.
• 74% of tax assessed valuation.
• The applicant’s conservative valuation of the nine properties, $570,576.
• 36% of the borrower’s stated valuation.
• Loan proceeds were intended to segregate much of the 409 acres into 20 acre building sites, construct roads and bury power to 20 acre building sites with lake view. All of which creates more value for both the developer and the lender.
• No appraisal was required.
• The applicant is a land developer.
• His intentions were to use loan proceeds to develop roads, bury power and segregate larger parcels into 20 acre building sites with lake views.
• The applicant has a history of selling these 20-acre properties.
• The previous year the developer sold seven properties. Total sales $621,899.
• Two years ago, the applicant sold three properties. Total sales $191,500.
• Three years ago, the applicant sold three properties. Total sales $163,500.
• Based on the applicant’s history of land sales, the lender approved the loan without the expense of a costly appraisal.
• The loan is structured with partial release clauses and substitution of collateral clauses, which enable the developer to sell parcels for cash or contract.
• Presently three real estate contracts pay 100% of the monthly payment on this land development loan. The developer does not have to make a payment, if his purchasers continue to pay as agreed.
• Each seller financed contract has appropriate Requests for Partial Reconveyances and Warranty Fulfillment Deeds in escrow to protect the purchaser and provide the purchasers with clear title when they have paid the seller in full.
• One larger parcel was sold and a Partial Reconveyance was filed in consideration of a modest principal payment.
• Both the borrower and the lender are happy with the end result of this win-win loan scenario.

• No Prepayment Penalties
• $279,000 loan amount
• This loan is secured with First Deed of Trust on an Adult Family Home.
• The tax assessed value was $286,800.
• The home recently appraised at $465,000. (We used an appraisal prepared for another lender that would not fund the loan.)
• 60% of the most recent appraisal.
• Both the borrower and the lender are happy with the end result of this win-win loan scenario.
  

• $200,000 loan amount
• This loan was secured with First Deed of Trust on a partially complete construction project.
• The applicant develops vacant lots with foundation and other improvements, sets a home on the new foundation, pours concrete driveways and garage floors and completes landscapes.
• The subject home was moved from one lot to another. The new location and house move project needed the cash from this loan to complete the project.
• No appraisal was made of this project. The lender and borrower have a long term relationship and have worked together often in the past. The lender was comfortable with the value. Presently the project is complete and listed at $429,500.
• The loan amount represented approximately 47% of the as-complete value.
• Both the borrower and the lender are happy with the end result of this win-win loan scenario.
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This lot was purchased, developed with a foundation and a displaced home was moved approximately one mile to the new lot and foundation by Breithaupt and Sons, LLC. Ryan and his father, Paul Breithaupt, are happy to chat about the services they offer to move displaced homes and other structures. Call Ryan Breithaupt, 509-413-7771 or Paul Breithaupt, 509-217-3237, to discuss moving a displaced structure as opposed to demolition.