Birds Eye View property picture

Property ID #867

Why we like this deal?

Borrower owns free and clear two parcels in Las Vegas totaling about 41 acres. Plan is to build themed multi-entertainment indoor park for customers of all ages. This loan is for phase 1 to obtain permits and renovate existing 17,000sf building for steel slides, aquarium, enchanted caves, tree house, waterfall and themed dining area. Once complete and generating revenues, stabilized property will enable conventional bank loan for takeout or a larger construction loan to begin phase 2 expansion.

Borrower has extensive experience identifying, acquiring, managing and disposing of commercial and residential properties in Las Vegas.

The loan to value (LTV) provides a 54.4% cushion of equity. This opportunity presents an investor with a commercial note at 12.9% for 2 years, secured by a recorded first mortgage lien or deed of trust on this property.

Why the bank can’t lend

Banks won’t lend on construction loans of this type with no current monthly revenues.

Risk Analysis

We consider the risk to be medium/low relative to the loan to value (LTV).

Property Summary

Property Type: Mixed use
Property Value: $7,900,000
Loan Amount: $3,600,000
LTV: 46%
Loan Term: 2 years
Amortization: interest only
Recourse: no
Cross Collateral: no
Max Rate: 12.9%

Borrower Summary

Source of Income: N/A
Documentation: Available
Guarantees: no
Payment History: N/A

Risk Summary

Overall Risk: medium/low
Market Risk: medium
Property Risk: low
Borrower Risk: low