WHAT WE THINK IS THE MOST CONVENIENT FOR OUR INVESTORS, STRATEGIC ASSOCIATES AND PARTNERS, AS WELL AS FOR BORROWERS, ALL TOGETHER, HAVING IN MIND THE BEST INTERESTS OF EVERY PARTY AND ANY EDGE FOR EACH TRANSACTION. WE CAN BE FAIR REGARDING OUR INVESTORS, STRATEGIC ASSOCIATES AND PARTNERS, AND, AT THE SAME TIME BE FAIR REGARDING BORROWERS. WE CAN BE FAIR, AND WE HAVE TO BE FAIR, REGARDING ALL PARTIES.Fixed Rate Loans(strongly recommended)
The most common and recommended form of loan is a long-term, fixed-rate financing. With long-term interest rates still near the most convenient point of their historic lows, but headed upwards, for many borrowers it makes sense to lock in a fixed rate rather than to let the rate float. We typically arrange fixed-rate financing ranging from 1 to 30 years, and can negotiate the best commercial mortgage lending terms, especially interest rates, loan-maturity and prepayment penalties. We are able to lock in low rates for a variety of commercial transactions, and many companies seek self-liquidating loans up to 30 years in length.
Variable Rate Loans
Some borrowers have taken advantage of this type of loan, particularly buyers with short term goals to take advantage of variable, or floating loans. Floating rate loans are usually indexed to LIBOR (London Interbank Offered Rate), which is near of the Federal Funds rate. We can help borrowers exploit this form of flexible financing for their immediate utility under predictable conditions, however it is difficult to predict conditions as a part of a long term strategy.
Mezzanine Loans
When a company (borrower) ’ s existing first mortgage has a yield maintenance prepayment penalty that effectively prevents refinancing, and the first mortgage lender will not allow a second mortgage , a mezzanine loan can free up trapped equity. The mezzanine loan typically equals the difference between the first mortgage amount and up to 90 % of the purchase price. Structured as partnership debt, or preferred equity, a mezzanine loan can be a valuable financial tool. For example, when a borrower seeks higher leverage for an acquisition than a bank would allow, a lower loan to value institutional first mortgage in conjunction with a mezzanine loan may be the solution.
Bridge Loans
Depending upon a corporation(borrower)'s time frame and the needs of such company, LIBOR floating rate, interest-only loans as well as fixed-rate loans are available. Funds may be arranged from institutional sources as well as from our investors and private sources of financing for short-term financing that can be accessed on short notice. Bridge loans are designed to be paid back relatively quickly, or replaced by a subsequent longer-term loan.
Construction Loans
Construction Loans are usually short-term loans utilized by companies (borrowers) to finance building costs. From new construction for multi-family residential properties ranging from condominiums for sale and apartments for rent, to construction or renovation of office buildings, self-storage, retail facilities, and many others. We can arrange construction loans for companies, partnerships, etc, for a wide array of project types. Construction loan may vary depending on the length of the construction process and the company(borrower)'s experience. We can help builders and developers in order to obtain the best deals, rates and terms.
Renovation Loans
Renovation loans are similar to construction loans. Renovation financing serves the specific and special purpose of improve and upgrading an existing property to make it more attractive to the market. We help companies (borrowers) in presenting their renovation program to the right among our investors, strategic associates and partners or otherwise to the right alternative lending source. The goal is to arranged structured finance for properties where a temporary interruption of cash flow may be required for an owner/developer to add value by renovating. Depending on factors ranging from the loan to value ratios to a owner or developer's financial strength and experience, these transactions may require a combination of lending sources in order to achieve the best results. May be private, may be institutional or may be a combination of private and institutional lending sources
Forward Commitments
Forward commitments involves a commitment by a lender to make a loan in the future, often with a predetermined interest rate. A forward commitment could be provided with an early rate lock up to twenty or more months in advance of a project's completion and stabilization. This loan structure allows the corporation (borrower) to include the debt-service component in their budgets, removing the risk and uncertainty of interest rates at the time the project is completed. Large transactions can often be placed with limited personal guarantees, and in some cases on a non-recourse basis.
Debt Loans
Debt loans are credit lines that are a floating-rate credit facility ready to provide cash which may be needed for capital improvements years after a mortgage closing. This credit lines give the corporations a way to handle unforeseen expenses in the future, and the flexibility of being able to pay down a credit line without any prepayment penalty.
Other types of loans
There are many resources for numerous special financing needs and could be obtained under the optimal structure for the company (borrower). Multi-phase financing could be structured, usually with a single financial source (private lender or institutional lender). Both personally guaranteed and non-recourse financing can be arranged depending upon the degree of leverage desired, the experience of the company (borrower) and other factors. In structured finance transactions, credit enhancement whether derived from income-producing real estate or non-real estate sources such as marketable securities can sometimes be used to achieve higher leverage. It can provided mezzanine financing at the time of acquisition, in partnership with a first mortgage lender, or years after an acquisition, in order to free trapped equity. These special situation loans can be placed to provide creative solutions when such solutions are needed.