Summary:

Up to 90% financing on income producing properties on a non-recourse basis.

Property Types:

Any multi-tenant income producing property. Past transactions include multifamily, retail, industrial/warehouse & office.

Must be located near a readily accessible airport such that a day trip can be arranged with no overnight stay required.

Will NOT Consider:

Vacant land. We have other programs for land.

Locations Considered:

Nationwide

Interest Rate & Points:

8 to 10%. with 2 to 4 points depending on the deal size, timing and complexity.

Loan to Cost:

Will advance up to 90% of the purchase price at closing

Terms:

24 to 60 months

Debt Service Coverage:

Not meaningful, vacant buildings are acceptable.

Preferred Loan Size:

Over $1 million

Rehab Funds Available:

Yes, in special situations.

Amortization:

Typically a 20-25 year amortization period

Recourse:

Typically none except for standard carve-outs contained in loan documents

Special Considerations:

No gang, drug or high crime areas. One of the principals from the lender MUST do site inspection. If senior debt is placed with a federally regulated institution a MAI appraisal will be required. If the borrower is less rate sensitive the transaction can be done with 'private money' and a closing can take place prior to the lender reviewing the appraisal. Environmental and Engineering Studies required on case by case basis.

Special Underwriting:

Borrower must be experienced 'real estate investment professional'.

Special Closing Issues:

Title insurance policy must be written by a large 'nationally known' name; one year of property taxes and insurance are paid at closing. Standardized 'cookie cutter' legal documents. Property tax and insurance escrows.

Typical Closing Timeframe:

Private money deals can close in 7 to 14 days. If Senior Debt is placed with a federally regulated institution the closing is delayed until the lender receives and reviews the MAI appraisal (currently 30-45 days to complete).

Prepayment:

Lockout for 75% of loan term. Negotiated exit fee typically 1% of the loan amount.

Special Note:

The fastest closing with Bison and this source is 11 business days from first contact with the borrower. Mezzanine lender is a fast acting, wealthy family with no complicated board approval process or red tape.