| |
| Tuesday, October 7, 2008 |
| 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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