Acquisition & Development Loans
- An acquisition and development loan provides the majority of the
funds necessary for a developer to acquire or develop property.
These loans typically last 1-2 years, are interest only, and are replaced
with conventional financing once the project is completed.
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Construction & Renovation Loans
- Construction & Development loans are available to developers with
previous development experience. These loans typically last 1-2
years, are interest only, and are replaced with conventional financing
once the project is completed.
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Permanent Loans - These
types of loans are conventional. They can be fixed or adjustable
rate loans, amortized over 10, 20, 25, 30, for terms of 10, 20, and 25
years. The amount that can be funded is usually in the 75-80% loan
to value range.
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Bridge Loans - Bridge Loans
are short term commercial mortgage loans for developers, owners and real
property investors who need short term mortgage financing. These
loans are usually for acquisition, development or rehabilitation financing
for transitional assets with upside potential with an emphasis on existing
or rehab properties. Bridge loans can last for up to three years.
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Direct Private Mortgages
- Direct private mortgage loans are an alternative to traditional
financing sources such as banks and other lending institutions. The loans
typically have short terms, a low loan-to-value ratio and an interest rate
that is at least 600 basis points over prime. These loans are often used
by those who wish to close on a property more quickly than traditional
financing allows or who have been unable to qualify for traditional bank
financing.
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Mezzanine Financing
-
A mezzanine loan is a useful tool for making permanent financing possible.
A mezzanine loan bridges the gap between the equity you have available for
a particular project and the amount of equity necessary to secure
permanent financing (usually in the form of a conventional loan).
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Credit Lines - This type of
financing is typically an unsecured variable-rate credit line that
facilitates the ability to access cash which may be needed for capital
improvements years after a mortgage closing. Pricing ranges vary. One
major advantage of this type of loan is the flexibility of being able to
pay down the credit line without any prepayment penalty.
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Equity Financing
-
Depending on the size and scope of your development project, The
Erskine Group may be able to bring together interested investors
with your development team to assist in funding your project.
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Joint Ventures
- A joint
venture is where
The Erskine Group assists in bringing together potential
partners for a development project. The circumstances vary widely, but
often the Joint Venture involves bringing together a source of equity and
expertise with a promising Developer who has an interesting transaction
yet lacks sufficient capital or proven experience.
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