Hedge Fund Loans
Alliance Business Capital is pleased to be offer larger Commercial Real Estate Financing through our relationship with a Hedge Fund Lender. With this relationship we can now assist with Commercial Real Estate Financing for Income Properties, Construction, Raw Land Acquisition and Development Loans.
The loans that the Lender considers are usually value-added transactions where Lender is able to provide higher leverage, expedited closing, or unique structure–in most cases, completing transactions both at a cost savings and with fewer complications than typical equity loan lenders.
Our customers also benefit from lenders in-house staff experienced in reviewing preliminary market, engineering, and legal information, adding to the speed with which we are able to assess loan requests and quote terms. Lender also offers borrowers significant cost efficiency that accompanies the due diligence of one dedicated set of closing personnel.
Loan Parameters
- Loan Amounts: $40 Million to $750 Million
- Loan Terms: 2-6 Years
- Recourse: Typically, most deals are full recourse
- Prepayments: Loans generally may be prepaid at any time after 3 years without penalty. Prepayment penalties may be required for shorter terms.
- Loan to Value: Loan amounts up to 75% of the Lender’s approved appraised value. In special circumstances, we may be able to stretch up to 85% LTV.
- Loan Rates: Rates are customized per transaction based on risk and underwriting factors.
- Origination Fees: Typically, 1% to Lender and 1% to Alliance Business Capital.
- Commitment Fee: Typically, 1% to Lender.
- Loan Collateral: Real Estate Assets. we specialize in land and other Commercial Property Types (e.g. hotels, and special purpose properties). We also provide “Bridge Loans” on traditional multi-family, retail and office properties that need to be turned around before they can qualify for Conventional Loan Underwriting.
- Quick Response: We have in-house staff for most preliminary market, engineering, and legal reviews, allowing us to quickly quote specific loan terms based on information provided in the loan request.
- One-Stop Shopping: Lender originates Commercial Real Estate Loans for their own portfolio, so the borrower saves time and money dealing with one lender and one set of due diligence and closing personal.
- Loan Flexibility: We will strive to tailor a loan structure to fit your deal, unlike so many other institutions that require your deal to fit their structure.
Items Needed for Initial review
Lender required the following items in order to review a loan request.
- Executive Summary: Need a detailed summary of the project included a breakdown of the loan request.
- Personal Financial Statement: Need a current Personal Financial Statement on all Principals including a Schedule of Real Estate Owned.
Please forward the above items to Bob Goodykoontz at [email protected] along with any other supporting documents you may have pertaining to your loan request (e.g. appraisal, feasibility study, etc.)