Loan Request for Commercial loan in Chowchilla, CA, 93610

3/2/2026 4:00:38 PM

Chowchilla, CA, 93610, USA Show Map Hide Map

Commercial

$8,250,000

$5,500,000

$4,750,000

57.58 %

780 or more

Over $10,000,000

Refinance all

The Scenario & Use of Funds:
My clients are an experienced group of real estate investors who hold an existing $2.4 million note on this exact property. Following the original borrower’s bankruptcy, my clients are stepping in to acquire the property directly from the bankruptcy court. There is currently an active bid of $5.25 million; my clients are outbidding this by 10% to secure the asset for $5.9 million.

To fund this acquisition, the borrowers are leveraging their existing note to execute a court-approved credit bid. By combining this credit bid with their own cash injection, they are keeping the required new loan amount strictly to $4.75 million.

Collateral & Asset Valuation:

Primary Collateral: 560-acre working farm/ranch in Madera, CA.

"As-Is" Value: Estimated at $8,000,000, representing a highly conservative 59.3% LTV on the primary asset alone.

Upside Potential: City approval has already been obtained to convert 70 acres of the property into residential development. This entitlement pushes the "As-Completed" value to $10,000,000+ within the next 12 to 24 months.

Income: The farm currently generates a steady, verifiable cash flow.

Cross-Collateralization (Extra Security): The borrowers hold a portfolio of additional real estate and are willing to pledge free-and-clear properties as extra security, dropping the effective LTV even further.

Borrower Profile:
The borrowing entity consists of highly experienced investors with excellent credit profiles, strong cash liquidity, and intimate, historical knowledge of this specific asset.