Recently Funded - Hemp Farm in Pahrump
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Loan Amount: $1,500,000
Collateral: First Trust Deed on 30 acre Hemp Farm with 30-acre feet water rights with two operating wells in Pahrump, Nevada
Purpose: To refinance existing first trust deed that was a seller carry back and give cash out to help the borrower's additional equipment needs. Borrower has put over $1M in cash into the project including re-zoning approvals, plants, and building an additional 1,600 sq. ft. commercial building on the property.
Property Description: 30 acre Hemp Farm with 30-acre feet water rights with two operating wells. 5/8-mile horse racetrack, 3500 seat stadium arena. Church & block gazebo. 19 horse stable barn with 1,392 sq. ft. living quarters above. Meeting hall with public bathrooms.
Loan-to-Value: 46% (value of $3,260,000) based on an “as-is” appraised value of the property provided by Valuation Consultants in October 2019.
Interest Rate: 14% per annum, paid monthly.
Minimum Interest: 6 months minimum interest guaranty. No prepayment penalty after 6 months.
Term: 12 months
Borrower/Guarantor Profile: Returning borrower. He is an experienced real estate investor and developer based in Las Vegas with a $25MM Net Worth.
Loan Servicing: FCI Loan Servicing will provide loan servicing at Borrower’s expense.
RISK DISCLOSURE All real estate markets can be negatively affected by interest rates, availability of capital, supply and demand factors, and general economic conditions both locally and nationally. The investor should review this proposal with these risk factors in mind, and base the investment decision on both existing market conditions and potential changes in the economy, as well as the investor’s personal objectives and risk tolerance.