| Eligible
Locations: |
Major markets in Continental
US |
| Eligible
Properties: |
Apartment properties located in virtually any area. |
| Eligible
Transactions: |
To finance ground-up construction of new, and substantial
renovation of existing, market rate apartment properties.
|
| Transaction
Size: |
$4.5 million - no maximum |
| LTC: |
Up to 90% of total project costs.
. |
| Security: |
First mortgage lien
on the subject property(s), assignment of all permits and approvals, assignment
of leases, pledge of partnership interests, personal guarantee of principals,
UCC on other collateral |
| Ownership: |
Single asset, special
purpose entity. |
| Application
Fee: |
Fee of $3,000 is due with the signed Letter of Intent |
| Origination
Fee: |
1% -2.5% of loan amount
payable at closing |
| Early Deposits and Expenses |
- Packaging fee - $12,500
- Feasibility study - $8,500
- Environmental report - $2,000
- HUD exam fee - 3/10th of 1% of loan amount
- Appraisal - $5,000
- Engineering $5,000
- Cost Review $5,000
|
| Builder's profit |
Up to 10% of allowable costs, payable at closing of construction phase |
| One Loan- One Closing |
Construction and permanent loan in one closing |
| Prepayment |
Negotiable |
| interest
Rate |
5.5% - 6.5% fixed at time of closing on construction loan for 40 year loan term |
| DSC: |
1.20x |
| Recourse: |
None - not even carve-outs |
| Borrower
Qualifications: |
Knowledge and experience;e
significant liquidity; no minimum credit; completion guarantees and bonding of GC required |
| Loan
Term: |
40 years - no balloon |
| Reserves: |
Mortgage interest,
real estate taxes, hazard insurance, others if required |
| Second Mortgage:
|
Not permitted |
| Demonstrate Demand |
Heavy concentration
on local demand based on Lender's commissioned feasibility study |
| Assumable |
To qualified borrower for 1% fee |
| Closing
Time: |
4 to 6 months |
