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Finance for Florida Condominiums

Monday, August 21, 2017
Borrower   A real estate developer in St Petersburg, Florida.
Loan   A $3,000,000 - two-year loan with interest at 12% for the first year, and 18% for the second year.
Collateral   A second mortgage lien on the borrower's luxury 11-unit condominium project in Anna Maria Island (near St. Petersburg, Florida). The first lien was for $325,000 only.
Guarantors   The principals of the Borrower and associated companies.
Purpose   Having bought the land for $2.5 million, and having spent $6.5 million to get it 85% complete, the borrower needed our money to complete the project, whose estimated selling value was $18 million.
Exit strategy   The borrower planned to repay us from sales proceeds of the units.
Outcome   The loan enabled the borrower to complete the project, which was successful. It was paid in full within six months.




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