RealWebFunds helps developers, owners investors with find short term financing to
add value to a property or stabilize the property. Bridge lenders are expecting the
property to be stabilized at a higher value within one to three years. By presenting your
loan request to local, regional and
national bridge lenders we are able to find the best financing available for just about
any size and shape of project.
| Note: These are not terms of any specific lender. They represent terms that
we frequently see in the marketplace and are not to be relied on as a commitment to provide
any specific terms for any specific deal. |
| Maximum loan to cost: |
80% to 90% |
| Maximum loan to value: |
70% to 80% of completed value |
| Holdbacks: |
In some cases the loan will be made at the future value but a portion
will be "held back" until improvments are completed or vacancy is decreased or some
other value-add goal is met. |
| Term: |
Generally 1 to 3 years with extensions as necessary |
| Amortization: |
Interest only |
| Typical Rates: |
Prime plus 1.5% to 3.0% or LIBOR plus 3.5% to 4.5%
|
| Prepayment terms: |
No prepayment penalty |
| Projects: |
All commercial property types can be financed. Developer and contractor
must have experience at this type and scale of developement. |
| Recourse: |
Typically recourse. a few lenders offer non-recourse construction financing for larger loans. |
| Closing costs: |
Borrowers are responsible for all due diligence and closings costs (e.g. Appraisal, Phase 1 Environmental, site inspection, title, etc)
- Loans under $3M - costs range from $6,000 to $12,000
- For loans over $3M - costs can be $20,000 or more
|
