Kennedy Funding loan helps keep resort dream alive

Real Estate Weekly, July 12, 2006

Brian and Donna Wight of CGP, Inc. had a dream, and it was coming true.

They had purchased the 62.3-acre Mountain Creek RV Resort in Blairsville, Union County, Georgia, and they were building it out, with the intent of turning it into a first-class attraction. It would be one of the few such resorts in the state, and the only one in the county.

Their plans included 325 spaces that would have a concrete pad, an upscale utility pedestal and, in some cases, an on-site cabin. They also wanted to develop a multi-acre community park with a 4,000 square foot clubhouse, featuring gathering rooms, a card room, and an exercise room. In addition, they planned to include a hardscaped outdoor swimming pool/ water attraction, shuffleboard, tennis courts, and laundry and bath facilities.

But, as it often will, reality intruded, and the Wights found themselves running out of money. They needed a loan to pay off their existing debt and finish the RV resort and all its amenities. However, their collateral consisted of raw land with little improvements completed, and the lenders they spoke with were simply unable to get things done, especially in the time frame necessary to CGP.

Then the Wights sat down with Kennedy Funding, a direct private lender in Hackensack, New Jersey. As CGP found out, Kennedy's viewpoints and capabilities are unique, and proved to be exactly the solution the Wights needed.

According to Kevin Wolfer, co-CEO of Kennedy, "We actually like raw land loans. To us, raw land has beauty and potential. But when borrowers try and use it as collateral with a traditional lending institution, they're like a lost man in the wilderness. So they come to Kennedy, because they know our reputation. Whether it's a residential project, a mixed-use community, golf course, amusement park, resort, or commercial complex, we see the value in the borrower's vision. We've made loan commitments in just one day, even with just the raw land as collateral. That's one of the reasons why we believe no other lender is as fast or as flexible as we are."

In keeping with their credo, Kennedy made a $6.06 million loan to CGP, Inc., and their RV resort is back on the road to completion. Already, an entrance bridge and entrance road are finished, as is the sales center, two houses are being rebuilt as part of the community complex, and a single-family home may be completed and used as a guest house.

"It really is our dream," said Brian Wight. "No other lender was able to help us, due to what they said were necessary restrictions and conditions that prevented their involvement. But Kennedy came through right on time, just as they said they would."