BOND FUNDING LOAN TERMS
Bond funding involves raising the desired capital through the use of 144A or Reg D structure Bonds with a Bond Consulting Firm who will package and market the bonds. This program funds up to 99% of the Total Project Costs with the option to defer repayment for 12-24 months.
UP-FRONT LOAN COST:
Worldwide except unstable regions.
$1 Million USD to $500 Million USD (no cap)
Stabilized Real Estate
Oil & Gas
Major Business Acquisition/Expansion
Up to 30 years amortized, Interest only during construction
Approximately 90-120 days
Bond Fee (1-2% of total loan amount) and the cost of any 3rd party reports (appraisals, etc.).
Upfront Refundable Retainer Fee of $3,500 - $5,000 in most cases*.
* This program is offered through one of our trusted Arranging Sources based out of New York City.
This source does charge a fully refundable Retainer Fee in order to proceed with their lending
solution. This source is A+ rated with the BBB for over 20 years. Their retainer is 100% refundable if
no offer is made by the lender or if the terms agreed to are different from the terms offered.
Lender funds up to 99% of total project costs
No credit check
No asset verification
No personal guarantee
No loss of equity in your business
Option to defer payments up to 12-24 months
Lender points are built into the bond
Financing can be done in one lump sum upfront depending on project needs
FREQUENTLY ASKED QUESTIONS
HOW MUCH IS THE BOND FEE?
Bond fee is typically between 1% - 2% of the total loan amount, cash down, to be paid up-front. In our experience, the fee is rarely more than 1.5%.
IS THE BOND FEE REFUNDABLE?
Yes. In the event that the project does not complete underwriting, for whatever reason, what remains of the Bond Fee will be fully refunded to the client.
WHAT ARE 3rd PARTY REPORT COSTS?
Prior to closing the client is responsible for paying any and all underwriting costs which may include reports, appraisals and any other type of third party compilation reports needed to close the project.
WHAT IS THE BOND FUNDING PROCESS LIKE?
The bond consulting company will issue their Memorandum of Understanding (MOU) that outlines the terms.
The client gives us their verbal request for the engagement agreement based on their satisfaction with the MOU and signes the agreement.
The client pays the initial Bond fee to the consulting company.
The bond consultants perform their phase one work which includes due diligence and assistance with the preparation of a package to be used for marketing of the bonds.
The bond company then forwards the materials to their securities attorney for review.
After review a conference call is scheduled between the client, the attorney and the principal of the bond consulting company.
The client will engage the securities attorney and complete forms needed to proceed to the next step.
The securities attorney will then prepare the offering plan to be sent to the FINRA broker deals for marketing to sell the bonds.
MORE ABOUT BOND FUNDING:
Bond Funding is a fast, low cost, non-recourse way to finance many types of real estate and non-real estate projects. It can take the form of either a 144A or Reg D structure. To further enhance an offering the client has the options of debt, convertible debt, preferred convertible stock, preferred stock, or stock to raise the desired capital. The company that arranges this financing may also be able to provide an IPO approach as well.