Leron
85 Posts |
 Posted - 04/08/2008 : 08:20:54 AM
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New Aggressive lending for Acquisition & Development Projects:
All projects are reveiwed and considered on a case by case basis, but below we have outlined what to expect as far as loan terms and conditions to be expected
The Terms and conditions are as follows:
Program is available for global projects
Loan Size: $10M minimum with no Maximum
Project Type: Acquisition, Development and Construction
Requirements:
Client must put up a minimum of 11% for project reserve deposit. These funds will be placed in an escrow account with First American
Equity:
Projected completed loan to value may not exceed 70%. In the event projected value falls below this minimum, borrower will be asked to put up a larger reserve deposit to offset the amount of deficiency.
General terms are as follows:
LIBOR + 0-2% (90 day rate)
LTV up to 70%
% for build out
1% commitment fee
1% -4 % equity exit (risk assessment and ROI will determine if this applies)
11% proof of funds
2-5 years interest only
6 points for lender
No PG
No early repayment penalty
DD & lenders costs (generally 30K-60K)
In some cases land can be in lieu of the reserve, or we can arrange for bridge financing to cash out on the land where the fund will issue a commitment letter to the bridge funder as an exit strategy.
Leron Levy
Managing Partner
Royal Capital Group
1172 s. Dixie Hwy Ste 161
Coral Gables, Fl 33146
Tel: 786 269 4744
Fax: 786 216 7659
Leron@royalcapitalgroup.com
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