The Madison Group (TMG), a leading source of land financing nationwide, arranged a $3.6MM purchase money land loan for 66-acres in Texas. The Borrower contacted TMG and requested a high leverage land loan so he could self-finance the development.
The property consisted of a SFR and 66-acres. The client’s goals were to purchase the property, develop the land into 45 lots, and sell the individual lots to residential home builders and consumers looking to build their dream home. TMG was able to find a lender that was, not only able to finance 80% of the purchase price, but also was able to lock in the interest rate for 45 days. With this amount of leverage, the client was able to self-finance the development of the land.
Overall, the client was very happy with the loan terms and how quick the lender was able to close. The client is excited to move forward with the development and sell the lots for residential homes.
Loan amount: $3,600,000
Term: 5 years with 12 months of I/O
Amortization: 25-year amortization
Prepayment Penalty: None