TerraFund will fund loans between $500,000 and $10,000,000 and has been the lead lender for transactions up to $16,000,000. TerraFund’s main focus is first mortgages, but we can also provide second mortgages behind an institutional first lender. The exit strategy is an important factor and our typical loan terms range from 6 to 18 months.
TerraFund looks to make commitments with real estate developers who have a proven track record. Our underwriting would require satisfactory due diligence including (but not limited to):
Arms length appraisal completed in the last 6 months
Pro-forma business plan including budgets and schedule
Confirmation that lands are free from environmental contamination
Verification of borrower’s equity in the project and financial strength
Reliance on legal, engineering and cost consultant counsel as appropriate
Clear exit strategy
As each real estate deal is different, there is no standard “application form”. We look at each individual loan request on its merits and are able to quickly determine if it is a good fit. Once we have an understanding of the project and have determined that it would be a fit, we are able to issue a commitment letter usually within a week.
