Commercial real estate solutions

 

Developers using Stock Loans…..

Most sophisticated developers put their projects in architectural and design about 2 years ago; when the lending world was a much different place. Whereas 2 years ago, developers could get a project horizontal and vertical for 10-15% skin in the game…..today senior lenders are looking for 40% or more. This realization has pushed many developers to seek out JV and equity partners to give them the financial horsepower required by their lender. Most of these developers are high net worth individuals that have a stock portfolio that they have not considered. Most are not happy with their current stock portfolios; at least compared to what they look liked 10 months ago. Many are not aware that a non recourse, no margin call loan even exists.  Developers are likely under a great deal of pressure from banks, labor, contracts etc. and even though they may not have a large enough portfolio to completely fund their project, many will find they have enough to remove some of the immediate pressure, and others can use a Stock loan to bridge the gap into the senior lenders desired LTC (bridge the gap).

LOAN PROGRAM OVERVIEW:
*Up to 85% LTV of existing stock portfolio
*Quarterly payments or Deferred payments
*Rates from 4.99%
*Closings in a few as 3 days
*Non Recourse Loans
*No Margin Calls
*No Up front Fees

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