Joint Venture Commercial Real Estate Loans

97% JOINT VENTURE

REAL ESTATE

Joint Venture

Real Estate Financing Terms

This lender will finance up to 97% of the total project cost (LTC), via a blended Bank/JV Program where in financing is provided by a bank plus equity funds, as managed as a joint venture. Commercial & Residential Developments eligible including acquisitions and refinance, new construction/infrastructure and vertical/major renovations.

LOAN TERMS

LOCATIONS AVAILABLE:

FUNDING AMOUNT:

ELIGIBLE PROPERTIES:

ELIGIBLE TRANSACTIONS:

OWNERSHIP:

RECOURSE:

LTV / LTC:

INTEREST RATES:

LOAN TERM:

CLOSING TIMES:

Worldwide

$2 Million USD Minimum

up to to $100 Million USD (Larger amounts can be done in phases)

Residential subdivisions (No one-off or scattered site Single Family Homes)
Commercial Real Estate Properties
- Multi-Family
- Retail / C-Stores / Offices
- Warehouse / Light Industrial / Self-Storage
- Hospitality / Resorts
- Senior & Assisted Living
- Medical / Hospital / Nursing
- Special Purpose
- Land (entitled with approvals only)
- ....and more

Acquisition
Refinance
Development / Construction
Major Renovations
Subdivisions (Infrastructure & Construction)

Single Asset, special purpose entity

Full Personal Recourse for the bank's first lien. No guarantor for the JV 2nd.

Up to 75% (project stabilized), Not to exceed 97% (total project costs all-in)

Blended Rate of Bank's 1st lien and Private's 2nd lien.

Bank's 1st lien on property = market rate (estimated 5-7%)
Private 2nd lien on property = 9-12%

1 to 5 years

45 Days

LOAN COSTS

LENDER FEE:

DEPOSIT:

ORIGINATION FEE:

ARRANGER'S FEE:

$5,000 Due with signed Letter of Intent (LOW)

$20,000 - $50,000 + Payable upon acceptance of Loan. Used for underwriting, 3rd party costs, legal& closing costs. Any unused amount to be applied towards the Origination Fee at Closing.

5% - 8% of entire transaction amount (1st & 2nd lien) Payable at Closing

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.

FREQUENTLY ASKED QUESTION

HOW IS THE FINANCING ARRANGED?

Financing will be provided by a bank plus private equity funds, as managed as a joint venture.

HOW DOES THE LTV/LTC WORK?

The 1st lien on the property will be 60-75%. The 2nd lien on the property will be up to the combined 97%.

EXITING THE JV SPLIT:

After the bank loan, priority return of JV partner's investment, and then split between 10% to 40%, depending on the cash/equity, the borrower invests in the deal. Varies case-by-case.

PARTIAL RELEASES?

Partial releases are granted for sold parcels / lots / units at 75% to 85% of sale price.

IS THERE A PREPAYMENT PENALTY?

Any prepayment penalties are set by the bank on the 1st lien only.

SECOND MORTGAGE?

Not permitted. Under this program, the JV partner is in 2nd position. No other debt is permitted.

WHAT ARE THE 3RD PARTY REPORTS?

3rd party reports may include: Full Appraisal (MAI, state) or even a BPO. Phase 1 environmental, soils test, ordered by Lender at expense of borrower. Existing reports less than 6 months old, completed by qualified firms may be rectified.