Solid Invest Opportunity/30% Ltv On 92 Acres

[romanfinancial]

SOLID INVEST OPPORTUNITY/30% LTV ON 92 ACRES OF LAND/SOLID INVESTOR
HERES A DEAL FOR AN INVESTOR THAT WANTS A GREAT RETURN! DEVELOPED LAND IN NORTHERN CALIFORNIA IS WORTH 10MM, PRINCIPALS OWE 1MM AND ARE LOOKING FOR A TOTAL L/A OF 3MM OR 30% LOAN TO VALUE. ALSO PRINCIPALS HAVE EXCELLENT CREDIT 735 FICO, SOLID INCOME AND ONLY NEED A 3 YR TERM LOAN. YOUR PMTS FOR 36 MONTHS ARE GUARANTEED! WILL PUT 3YRS OF PMTS IN ESCROW. BORROWER HAS OWNED LAND FOR 6 YEARS AND INVESTED OVER 650K IN IMPROVEMENTS. THIS LOAN WONT LAST. NO CO-BROKERING PLEASE. PRIVATE INVESTORS ONLY! HERES THE BREAK DOWN AGAIN.
LOAN AMOUNT $3MM @30%LTV
Appraisal 10MM
REFI CASH OUT
730Fico/FULL DOC 1040'S/NO PP
CALL DANIEL AT 1 (510) 904-1212 OR 1-888-888-8256 FOR ADDNL INFO.
EMAIL daniel@romanfinancial.net

[Tim]

This does not add up. If I agree to a three year term loan at any interest rate the total of the 36 payments EXCEEDS the funds I will release at closing and yet you are saying your buyer will ESCROW THE FULL 36 monthly payments.

It must be that you are expecting to amortize this over more than 36 months with a balloon payment in month 36/37.

Has it been appraised? When was the appraisal done?
What is their game plan within 3 years? In other words, why do they need a three year term?
What interest rate are they looking to pay?
What points are they willing to pay?
What amortization term are they looking for?
Since this is a refinance, what is the current balance on their existing financing?
What did they pay for the property six years ago?
What improvements, specifically, did they add to the property for the $650K?