nancy.mortgage
126 Posts |
 Posted - 11/03/2009 : 1:17:08 PM
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Large Balance Project Lending Program
100% Loan to Cost
Funding Terms
- Loan Amounts $100 Million and up only
- Developer puts $200,000 (Fee varies by Loan size) into Bonded Escrow Account with North American Title for Bank Transmission Fees.
-This deposit is held in an escrow account of Lender and Borrower and will be used only by the terms of the escrow agreement by the lender to generate a credit facility to make the funding of this loan possible. The deposit will not be allowed to move from the account or be encumbered in any way by either party. The deposit will be released back to the borrower, with no restrictions, after 30 days have passed from the time the deposit was made, if this loan has not closed, at which time, the escrow agent will without delay send funds in the amount of $200,000.00 back to the borrowers designated account in escrow agreement.
How it Works
-Facilitator purchases a Stand By Letter of Credit with HSBC New
York (or other designated top 10 bank if HSBC is not utilized) for double the Amount of money required.
-The Stand By Letter of Credit is then Monetized and the Funds for the Project are created.
-The Lender then purchases a 2nd SBLC and 50% of the cash goes to the Borrower and 50% to purchase the 2nd Instrument as collateral.
-The Lender invests the 2nd SBLC as they see fit.
-3 Year Loan Term, No Repayment required during the 3 years
-No Interest on Loan therefore no Interest Reserve is required.
-3 Year Balloon Loan
-Lender pays all 3rd Party Costs.
-No Prepay Penalty
-No Equity Participation by Lender
-No Presales required
-Non Recourse Loan
-Lender takes no Lien on Project, the Stand by Letter of Credit stands as the only collateral for the Loan.
-SBLC cost is 10% of Loan Amount which is deducted from
Proceeds.
-Closing Costs and Attorney’s Fees paid by Lender.
-Normal Timeframe to close under 30 Days.
-Money is released in Entirety, no Construction Draws.
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