1705 Manhattan · Harvey LA · Confidential · REV H8-M

One Loan · Land + Build

We are financing the land. One acquisition + construction loan ~$1.071M — $350k land max (draw 1) + $721k build. You bring ~$50k cash (earnest · soft). Not buying land out of pocket. Not a $1.8M raise.

$1.071MOne A&C loan
$350kLand max · draw 1
~$50kCash at table

Draw schedule: Draw 1 → land close ≤$350k · Draws 2–n → construction · Convert to perm @ CO

Sources & uses · to CO

Source$Notes
A&C loan — land + construction1,071,000SBA 7(a) or community bank · single note
Sponsor cash (earnest · soft · bridge)50,000Not land purchase cash
Total to CO1,121,000
Use$
Land purchase (financed · max)350,000
Construction @ CO721,000
Pre-draw soft (cash)50,000

Six steps

  1. Land LOI ≤$350k · earnest ~$10–25k · geotech · ALTA
  2. 4 tenant LOIs + deposits — income proof for bank
  3. One A&C term sheet — ~$1.071M incl. land
  4. Draw 1 — land closes from loan · not your cash
  5. Owner-GC build — $721k · full hall + 10 retail
  6. CO → soft open — ~$75k used equip · defer full FF&E

Why the bank says yes

MetricValue
One note · land + improvements$1,071,000
P&I @ 7.5% / 25yr~$7,900/mo
Lender-base NOI~$49,000/mo
DSCR~6.2×
vs GC bid path−$877k+
Wrong pitch: “Land is our equity” · construction-only $721k loan · buying land cash then borrowing build · $1.8M investor capital.

Lock: docs/1705-MANHATTAN-MINIMAL-CLOSE-REV-H8M-LOCK.md · Not an offer to sell securities.