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This program is used in the
financial market place for clients who are seeking to fund a construction
project (domestic or foreign) and wish to immediately obtain funding without
the arduous underwriting process dictated by conventional lending institutions.
Are you interested in a source
of funds that offers the following:
Minimal underwriting requirements,
Interest rates of 2-3 points
over the 6 month LIBOR during construction; 1-2 points over LIBOR
for permanent financing.
Funding for any feasible
construction or rehab project in the world.
No application fees of
Funding amounts from $5,000,000
Funding in as little as
four weeks from receipt of documentation..
Funding for condominiums,
income properties, residential developments, resorts, and much more!
Here are the requirements generally
A complete project book
providing a full description of the proposed project. If available,
also forward a current feasibility
study and appraisal.
A Letter of Credit is required
and may be supplied by our firm or by the client. If by the client
Client must produce a
verifiable Standby Letter of Credit from a reputable domestic bank
for 13% of the cost of construction or Financial Guarantee Bond
from a A rated, or better insurer for 10% of the construction amount
desired including closing fees of 4% to 6%. A bank will normally
issue an "Intent to Issue" at no charge to client.
If asked to provide a
Letter of Credit:
An average charge of 8% of the face amount of the Letter of Credit
to arrange this instrument. This fee is payable within 3 days prior
This program is very desirable
for those wishing to limit the leverage on their assets and can
be arranged within 10 days of initiating paperwork.
No "Funds First" requests
will be accepted.
Usually no proposals from
"Guaranty" companies or so-called "Credit Enhancement" entities
wil be entertained.
Developer will be required
to supply Performance and Completion Bonds. Local architects may be
contracted with for inspections for fund disbursements.
For consideration of a clients'
request the following is required:
A. Assurance that the client
can produce one of the instruments as indicated above.
The simplest means to accomplish this is with the "Intent to Issue"
bank letter or enlisting services to provide the Letter of Credit.
B. Completion of Non Disclosure-Non
Circumvent and Fee Agreements to be forwarded to the client upon receipt
of complete project information as indicated above.
Submitting brokers must have
their own fee agreements stipulating payment to them from proceeds after
the close of the transaction or in some other form mutually acceptable
to the broker and client.
Upon acceptable receipt of the above items a Letter of Commitment will
be issued subject to a Letter of Credit, or Financial Guarantee Bond.
Upon execution of the Letter of Commitment and verification/approval of
the guarantee instrument, funds will generally be available within thirty
Recommended further reading:
on a world wide level
Preparing your business plan
The executive summary
on Project Financing
Plan information and resources