Full Description: 100% fundng available for property development projects that are "shovel
ready" on a Join Venture basis
We are working with a private equity fund that loans in the following manner:
Loan program:
Minimum account considered is $25 million US (approx 18 m euro)
Lends against a AAA Cut Through Surety Bond.
The rates and terms for our program are listed below:
Rate: US Prime plus 4.5 - Current total interest = 7.75%.
Term: 2-7 years depending on construction schedule.
Amortization: 25 Years
Equity Shareholder Position required: 25%
The equity shareholder position can be bought out in the short term.
The equity shareholder position can also be negotiated in a seesaw fashion
with rate i.e. Higher rate lower equity share.
We utilize a broker to purchase a "Cut Through Surety Bond"
Timeframe to close:
Upon full submission approximately 21 Days for full Bond Underwriting
Fund Reviews and gives Final Approval approx. 7 days
Funding approximately 7 Days
From Submission to Funding table approximately 42 days
Example -
Desired Construction Loan Amount $150,000,000.
Loan Amount: $174,000,000. To include
all bond
purchase
8% Bond Cost: $13,920,000
2.5% Finance Fee: $3,750,000
2% Broker Fee: $3,480,000
1% Lender Origination: $1,740,000.
1/2% Usual's to include attorneys fees etc. approx.: $870,000
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