Unconventional Structure – lender takes (1st) lien in the project/collateral property, although not all projects require RE collateral.
Transactions w/CRE collateral have a much better chance of approval.
Ground Up Development, and/or
Global: Including BOTH US & (select) Int’l. Countries
Oil and Gas
% Financing Offered:
Up to 100% LTV financing
Non-recourse – w/standard bad boy clause
No prepayment penalty – 30-day notice required
Borrower Liquidity REQUIREMENT:
20% cash liquidity is required to be provided by the borrower – the 20% is deposited in an ICA account, to be held in an FDIC-insured bank, at the time the loan docs are signed (ICA account is a transactional account that allows the lender to draw out interest).
Please Note: Unlike an BA transaction, the borrower can create this required liquidity by using bridge loans, other temporary financing, or any other method they have available to them.
Interest is charged only on accessed funds
5-year term with a 1-year extension
Time to Close:
60-90 days to fund/close
5% lender points – built into the loan amount – paid on first tranche/disbursement to borrower. Lender points go to cost i.e., insurance wraps/maintaining LOC /cost of funds, broker fee.
Interest rate range 5-7% FIXED, (5-year term w/interest-only (I/O) payments)
To talk confidentially about this LOC, please CLICK HERE to schedule a time to chat.