-Assisted living facilities/Skilled care/Nursing homes
-Apartment buildings/complexes(refinancing, constructions, and purchase). The bigger the better.
-Multi-family developments (think town homes) that are rental properties or construction. Minimum loan amount is 3M.
-Self-storage facilities (must be very strong)
-Small balance commercial
-Accounts receivable loans
-Equipment loans/business expansion
-Anchored strip malls
100,000 Commercial Loans Will be "Called" or DUE in 2009
YOU can PROFIT from Local Bank “Turn-Downs”
Over 100,000 Small-Balance (under $5,000,000) Commercial Mortgages are coming Due this year at small LOCAL Banks. The Local Bank does NOT typically want to renew these loans on the following Properties:
|These “expiring” Loans were originally set for a Term of 3 to 7 years (even though the amortization was typically 20 to 30 years) and NOW the Local Banks are “Calling” them as Due.
Our Bank-Based Loans are for 20 or 25 Years with NO “Calls” or “Balloons”.
Highlights and Benefits
Publicly traded equity security used as collateral
Non Taxable Event, and Non Recourse Loan
Fixed Quarterly Interest only terms locked from 3 to 10 years
Dividends on Security are used to offset interest owed
Borrower keeps all dividends and upside market appreciation of the securities
No income, appraisals, citizenship or credit criteria
Minimum loan $50,000 and NO MAXIMUM
Loans up to 80% of the pledged value and Rates typically between 3 and 5%
Non Purpose Loan but could be used to Purchase
Residential/Commercial/International Real Estate, Invest in Business, Create
Venture Capital or could supplement or replace another commercial, residential or development loan without requiring the liquidation of the borrower’s stock to contribute cash to the transaction
The stock must be free-trading without any restrictions and the borrower cannot own more than 10% or more in the company of the issuer. Retirement funds (401ks, pensions, etc), do not qualify for this program.
Loan-to-value ratio and the interest rate are driven by the securities that are pledged.
The more liquid and actively traded securities, then the higher the loan-to-value ratio and lower the interest rate.
No principal amortization or loan prepayment. This loan is Interest Only until the end of the term at which time the loan may be renewed, refinanced, or paid in full.
At pay off, the exact number of shares or collateral initially pledged is returned to the borrower.
Default trigger set at 80% of the loan amount not 80% of the security value like typical margin-type loans. For example: security value of $1MM, loan of $750k, default trigger set at $600k (80% of the loan amount). If the security value falls below $600k, the borrower could choose to make up the difference to keep the loan or walk away from the security and keep the original loan proceeds($750k) which are now worth $600k or less.