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 any kind.

·         Funding amounts from $5,000,000 to $100,000,000.

·         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 applicable:

·         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 then:

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 to issuance.

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 days.

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