Replies to post #948 on United Development Funding IV fka UDFI

[freddie me]

How do we tease out amount due UDF IV?

[actofwill]

They are repaying but not on a net basis.

If its a growing market, which it is, it could be that UDF balances could be in fact increasing on new loans.

In which case UDF's book value has been growing.

Unless you think it's a Ponzi scheme.

[ofirm]

These loans are specific against projects with a cross collateral
clause. projects take years to develop and sell and those lands
are usually a bank land and not held for sale. that means that
12% - 13% accumulates on most loans. some are repaid as projects
get built and sold. that takes a long time.

[ofirm]

based on 13% rate and 1.25 years, 1.165 x 733 = 850. means $16M was
repaid assuming no new loans. I assume lines of credit from udf
are given while development takes place. that would indicate that
long standing loans are declining with development loans exist
now (shorter term in nature).