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Hedge Funds
Hedge Fund
Financing -- $1M Minimum
The
30-year-old Hedge Fund seeks to provide financing for $1M+
USD residential and/or commercial
projects to include acquisition, development and/or
construction. The financing available is not credit score
driven and will provide higher LTV’s than traditional
financing sources such as banks, pension funds and insurance
companies. The program is available for US and non-US
projects.
The Hedge
Fund will consider the purchase, refinance and/or cash out
refinance of commercial real estate properties, as well as
business acquisitions. Casinos, movies, churches, precious
stones, metals, and other ‘unusual’ projects will also be
considered on a case-by-case basis. Furthermore, the Hedge
Fund can provide 100% financing with a 50/50, 60/40 or 70/30
split. Equity financing is also available.
90%+ of all
projects funded will have interest rates at 150 to 300 basis
points over either the 5 yr T-Bill, 10 yr T-Bill or the 30
day Libor rate. The Prime rate [plus 100 to 200 basis
points] will be used on an exception basis only.
Acquisition
and development projects will mature in 2 to 3 years and can
convert to permanent financing with a 5 year fixed ARM
amortized over 25 years. All closing costs, origination
fees and interest reserves can be rolled into the loan
amount effectively providing a 97% LTV. There are no
prepayment penalties and no presale % requirements. The
majority of loans are non-recourse with carve outs.
The
following items are required to submit a package:
1)
Amount requested detailing the precise use of funds
2)
Outline indicating any critical details or deadlines
3)
Principal’s or Management’s resume and background
[20%+ owners]
4)
Personal Financial Statement not older than 60 days
[20%+ owners]
5)
Pro-forma’s until stabilization or anticipated sell
out
6)
Survey & Pictures if available
7)
Appraisal if available [6 months old or less]
A conference call is required with the project’s principals
before submission.
An acceptance letter with a needs list, is normally issued
within 72 hours.
Vertical projects can also take advantage of our
construction enhancement program that will reduce the
overall construction costs and lock in additional profits
before ground is broken. The use of this system will also
lower the LTV, decrease the building cycle and increase the
sales cycle.
A deposit will be required after terms are agreed upon.
This is for 3rd party fees and is held in escrow. The
deposit is refundable if something goes awry, but not if the
borrower pulls out. The deposit varies on a
project-by-project basis, but is typically around $25,000.
THE PROCESS
·
Conference
Call
·
Submission
for Pre-approval
·
Pre-approval
·
Issuance of
Letter of Acceptance/Term Sheet
·
Final
Approval of Letter of Acceptance/Term Sheet
·
Due
Diligence
·
Site Review
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