Please see below typical terms from my group out of NY. Once the completed Intake form, proof of funds and our fee agreement comes back, it will be forwarded to the lender for board review. They will provide a decision to move forward or not typically within 48-72 banking hours. With issuance of a term sheet, the borrower will have 7 days to sign and return with a few initial UW documents and a good faith deposit to cover legal, appraisal, and other third party costs.
Loan Amounts: $10M+
Sponsor Equity: 25% cash (POF required) , if the initial draw request is 60% of funding, additional equity may be requested.
Rates: 7-8% Interest Only structured as an LOC, Last LOI we sent out was at 7.5%
Geography: US and select international countries
Interest reserve built-in
Term: Up to 5-year optional 1-year extension
Non-recourse
Lender points: 5 pts (our broker agreement built-into loan and paid at first draw)
First Draw: 60-90 days from signing of closing docs & deposit into escrow
Interest reserve, most fees including lender broker points, etc are built into the loan. Sponsor equity must be liquid cash (cannot consider money already put into the project or assets that are already in place). When the project is complete, the sponsor's equity contribution is returned minus interest reserves.
Underwriting and signing of closing docs can take less than 30 days with first draw 60-90 days following the signing and deposit of 20% into escrow.
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