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Summary:
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Fast, "private money"
non-recourse loans on distressed income producing
properties purchased at a discount to their intrinsic
value.
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Property Types:
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Multifamily, multi-tenant
office & multi-tenant retail
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Will NOT Consider:
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Development and construction
loans, vacant land loans, nursing homes, heavy industrial.
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Target Area:
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Atlantic Seaboard
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Target States:
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Southeast
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Especially Like:
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Florida Multifamily
Properties
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Location Class:
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C+ or better
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Property Class:
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C+ or better
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Age:
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Does not matter if
the property has "good bones"
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Interest Rate:
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200-300 basis points
over Wall Street Journal Prime Rate
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Terms:
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18 to 36 months
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Loan to Purchase Price:
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Will advance up to
90% of the purchase price at closing.
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Debt Service Coverage:
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Not meaningful, vacant
buildings are acceptable.
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Preferred Deal Size:
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$1 to $10 million
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Rehab Funds Available:
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Yes, in special situations.
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Recourse:
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None except for standard
carve-outs contained in loan documents
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Asbestos:
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Does not matter with
O&M plan in place
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Special Considerations:
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No gang, drug or high
crime properties. One of the principals from the Lender
MUST do site inspection. Lender requires satisfactory
Phase I Environmental prior to closing. Depending
on site inspection lender will reserve for MAI Appraisal
and Engineering Review to be done as post closing
items.
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Special Underwriting:
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Borrower must be experienced
"real estate investment professional".
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Special Closing Issues:
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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.
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Typical Due Diligence
& Closing:
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7 days/7 days
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Prepayment:
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Lockout for 75% of
loan term. Negotiated exit fee typically 1-2% of the
loan amount.
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Special Note:
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The fastest closing
with Bison and this source is
11 business days from first contact with the borrower.
Lender is a fast acting, wealthy family with no complicated
board approval process or red tape.
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