Busienss Growth Capital offers a wide range of customized products to meet the needs of
commercial real estate borrowers nationwide. We will take you through
the loan process step-by-step and get you fast, flexible funding when
you need it most.
Our innovative loan programs here and abroad include
bridge, mezzanine, land and construction loans, as well as
sale-leasebacks and security-backed loans. For more information on these
loan categories, please click on the links below.
|Bridge Loans |Mezzanine |Hard Equity |Construction Loan |Land Loan |Sale-LeaseBack
Hard
Money Commercial Loans or hard money loan is a specific type of financing in
which a borrower receives funds based on the value of a specific parcel of
commercial real estate. Hard money loans are typically issued at much higher
interest rates than conventional commercial or residential property loans and
are almost never issued by a commercial bank or other deposit institution.
A hard money loan is a real estate
collateralized loan based on the quick-sale value of the property against which
the loan is made. Most lenders fund in the 1st-lien position, meaning that in
the event of a default, they are the first creditor to receive remuneration.
Occasionally, lenders will subordinate to another 1st lien position loan; these
loans are known as mezzanine loans or second lien position loans.
Hard money lenders structure loans based on a percentage of
the quick-sale value of the subject property. This is called the Loan-to-Value or LTV ratio and typically hovers
between 60-70% of the value of the property. For the purposes of determine an LTV, the word "value" is
defined as 'today's purchase price'. This the amount that a lender could
reasonably expect to realize from the sale of the property in the event that
the loan defaults and the property must be sold in a 1-4 months' time. This
'value' differs from an MAI appraised value.
PROPOSALS QUOTED WITHIN 24 HOURS
Terms:
Acquisition, Restructuring and Refinancing
LOAN AMOUNT: $50,000 and up.
BORROWER: Management and/or
ownership should be experienced. Past or present credit problems,
including Chapter 11 or Chapter 7 bankruptcies are workable.
LOAN TERM : 1 to 5 years, interest only.
PREPAYMENTS: Loans may be prepaid at any time after the first anniversary of the loan with no prepayment penalties.
INTEREST RATE: A preferred interest rate typically priced at 10% to 15%.
COLLATERAL: First mortgage on
land, office, multifamily, recreational, medical, warehousing,
manufacturing, self-storage, hospitality (hotel/motels) or industrial
properties, etc. -– non-income or income-producing, located anywhere in
the USA and select countries around the world.
L-T-V RATIO: 40% to 75% of As-Is Value.1
USE OF LOAN: Proceeds may be
used for real estate acquisition, equipment, working capital, closing costs or cash-out.
PROCESSING: Approvals within 24 hours, commitments within 48 hours, and closings in as little as 14 business days.
OTHER COSTS: Application Fee: $1,000 - NON-REFUNDABLE if Loan Commitment is in compliance with lender’s Letter of Interest.
Commitment Fee: Typically 3% of Loan Amount.
SUBMISSIONS: Brief property
description • Sources
and use of proceeds statements • Appraisal, where available
1 As-Is Value defined as a cash sale within a 180-day marketing period
