Hard Money Loans: Acquisition, Construction, Restructuring and Refinancing
LOAN AMOUNT: $1,000,000 and up.
BORROWER: Management and/or ownership should be experienced. Past or present credit problems, including Chapter 11 or Chapter 7 bankruptcies are workable.
LOAN TERM : 12 - 36 months, interest only (interest reserve allowed).
PREPAYMENTS: Loans may be prepaid at any time after the first anniversary of the loan with no prepayment penalties.
INTEREST RATE: A preferred interest rate of 10.0% - 15.0%
COLLATERAL: First mortgage on land, office, multifamily, special purpose properties, mixed used, retail strip malls, regional shopping centers, recreational, medical, warehousing, manufacturing, self-storage, hospitality (hotel/motels) or industrial properties, special purpose asset, etc. -? income-producing and non-income-producing assets, located anywhere in the USA and select countries around the world.
TARGETED DSCR: 1.05 (case by case)
L-T-V RATIO: 50% to 70% of As-Is Value by independent third party MAI appraisal.
USE OF LOAN: Proceeds may be used for land development, real estate acquisition, construction costs, equipment, working capital, closing costs or cash-out.
PROCESSING: Approvals within 48 hours, commitments within 72 hours, and closings in as little as 15 business days.
EXIT FEE: In lieu of equity, a fee of 0% to 5.0% of the loan amount.
OTHER COSTS: Application Fee: $20,000 - $35,000 -- NON-REFUNDABLE if Loan Commitment is in compliance with lender?s Letter of Interest.
COMMITMENT FEE/POINTS: Minimum of 7.0% Loan the Amount.
** As-Is Value defined as a cash sale within a 180-day marketing period
Initial Documentation Required to proceed to a Term Sheet/Letter of Interest:
Sponsorship Package
-Bio's for all Principals (must include a list of current owned
or previously owned real estate)
-Financial Statements for Principals
-Credit reports for all Principals (within the last 90 days)
A completed Financing Request Form (see "Forms" tab at the top of this page).
Executive Summary on the subject asset or,
Offer Memorandum on the subject asset if the transaction is an acquisition
Color Photos of the subject property (color rendering if new construction)
Detailed Sources & Uses of Funds
Detailed Construction Budget
Detailed Construction Plans
Five Year Detailed Performa
Feasibility Study (if available)
Business/Asset complete tax returns for the last three years
Personal complete tax returns for the last three years on all Principals
Current Business/Asset Balance Sheet and Profit and Loss Statement
Previous Third Party Reports
-Environmental
-Engineering (property solutions report)
-Appraisal
-Owners Title Policy
-General Inspections (roof, termite, etc.)
-Survey
Current Insurance Policies (copy of declaration page)
Any other information you believe to be of importance please include
Palm Tree Financial cannot complete a proper review and
ultimately produce terms and or a quote we can stand behind
without a complete submission package from you. Kindly
submit a complete package electronically, we prefer all
packages to be submitted via email/electronically, we do
have the capability to receive large files electronically.
If you are not able to generate some of the required
documentation, Palm Tree Financial does offer documentation
services (e.g. Performas, Executive Summaries, Source & Uses of
Funds, etc), please visit the tab at the top of our website
"Documentation Services Offered" for more details.
If you are a referring Broker you must complete
the PTFC Referral Agreement and accompany the
Referral Agreement with your submission (this agreement
is only required on your first submission). You can
find PTFC's Referral Agreement under the "Partner with Us"
tab at the top of this page). PTFC will not review
any financing submission without an executed
referral agreement by the referring Broker and or
Third Party referring source.
General pre-screen turn times are 3-5 business days.
PALM TREE FINANCIAL WILL NOT REVIEW ANY
PROPOSAL FOR FINANCING THAT IS NOT A COMPLETE
SUBMISSION FILE.
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