Refer below for details of the new product.
However, in the meantime, we’re still building
(standard product) bridges!
It’s been a while since we reminded you about our
facilities, but Little Rock has not been idle. And, as you will see below, we
have also unearthed a bigger rock; or if you like, built a larger bridge.
We still have genuinely “private”
first mortgage (non-Code) funds available to “fill the gap” between maturity of
an existing facility and sale, in the case of a completed development with
left-over stock, or say where a borrower may require an interim period to meet institutional lending criteria. As in all loans, responsible lending requirements must be fulfilled, however, in the private market, we are not restricted to
formal guidelines in the same way as institutional financiers with pyramidal
processing structures.
Each transaction is a clean
canvas, though generally speaking, we still do not have direct private lenders
willing to take vacant land (sub-divided or not) or construction loans as
security. Conservative gearing against quality security remains the order of
the day, but only where there is a real benefit for the borrower to go down the
“private” route. There may be many reasons for this, and we are happy to
discuss a proposition at any time.
As has been the case for some
time now, our preferred strike point ranges between $200,000 and $500,000
loans. However, we certainly have the capacity to consider larger loans. Where
a larger $ value is required, multiple securities (preferably residential)
present less challenges so that exposure to any one security and/or location is
limited, even though the aggregate funding requirement may be substantially
above our preferred strike point.
Pricing is very much a function
of volume and urgency. It goes without saying that demand in well populated,
Eastern Coastal areas is more easily filled than other locations where there is
a less active real estate market. In the end, it comes down to an assessment of
genuine current market value and demand.
“NOT ONLY, BUT ALSO”
In addition to our standard funding arrangements, we have
developed a relationship where
FOR EMERGENCY PURPOSES
there is capacity available to fund up to
$20.00 M per transactionagainst a single security
(and this may include some securities generally less sought
after in any tier of the financial marketplace)
All sensible proposals
are open for discussion.
The key to obtaining these funds is a genuine and
provable exit strategy. Preference is for a term of approximately three
months, and the interest rate is 2 % per month. So, while it is not inexpensive, it is available to satisfy a genuine need. Not only must there
be a clear, identifiable and orderly exit strategy in place, but also there must be a genuine advantage to the borrower in
pursuing such a course of action. There is a popular misconception - that Lenders at this end of the market are happy for loans to continue past maturity date. THEY ARE NOT! So the borrower, who will be personally interviewed, must be able to convincingly enunciate the repayment programme.
We look forward to
hearing from you.
