Eligible Locations:

Major markets in Continental US

Eligible Properties:

Multi or single-tenant, select special purpose, income-producing commercial real estate properties, hospitality and condominiums. (No health care, assisted living)

Eligible Transactions:

To finance substantial renovation of existing income producing properties. (No ground-up construction.)

Transaction Size:

$1 million to $20 million

LTV-LTC:

Lesser of up to 65% of the “projected” appraised value, or 75% of total project costs. For acquisitions, renovation/completion portion limited to not more than 1/3 of total loan.

Security:

First mortgage lien on the subject property(s), assignment of all permits and approvals, assignment of leases, pledge of partnership interests, personal guarantee of principals, UCC on other collateral

Ownership:

Single asset, special purpose entity.

Application Fee:

Deposit of $3,000 to $6,500 is due with the signed Application

Exit Fee:

None up to 4%, depending on the transaction.

Commitment Deposit

½ of 1% of loan amount or $10,000, payable upon acceptance of Loan Commitment depending on loan program for 3rd party costs, legal and closing. Balance applied towards Origination Fee or refunded at closing.

Partial Releases:

Releases for sold units at 125% of loan balance attributed to the unit(s).

Prepayment:

At any time without penalty

interest Rate :

13%-15% fixed, interest only.

DSC:

1.10x-1.30x depending on property type

Recourse:

Full personal recourse to each principal of the Ownership entity.

Borrower Qualifications:

Knowledge and experience with substantial renovation; significant liquidity; completion guarantees and bonding may be required.

Loan Term:

12-18-24-36 months

Reserves:

Mortgage interest, real estate taxes, hazard insurance, others if required

Second Mortgage:

Possible with permission of Lender

Exit Strategy:

Heavy concentration on value creation, market analysis and exit strategy.

Third Party Reports:

MAI Appraisal, Phase I environmental, feasibility and others if required, ordered by Lender at expense of Borrower.

Closing Time:

2 week Quick-close with completed 3rd party reports; or 30 days from completed Application