Deal Size: Min. $50 Million - $2 Billion
- 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.
Purpose:
- Acquisition
- Refinance
- Ground Up Development, and/or
- Business Expansion
Geography:
- Global: Including BOTH US & (select) Int’l. Countries
Asset Classes:
- Cannabis
- Multifamily
- Retail
- Mixed Use
- Office
- Gaming
- Hotel/Resort
- Portfolio
- Renewable Energy
- Oil and Gas
- Raw Land
% Financing Offered:
- Up to 100% LTV financing
Recourse:
- Non-recourse – w/standard bad boy clause
Pre-Pay:
- 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 SBA 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 Charge:
- Interest is charged only on accessed funds
Term:
- 5-year term with a 1-year extension
Time to Close:
- 60-90 days to fund/close
Closing Costs:
- 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:
- 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.