Truly Creative Financing Products for CRE Projects

[Jason Ross]

I used to sell nothing but a Cash Backed Bank Guarantee program to raise capital for Commercial Real Estate projects, whether it is new construction or acquisition, this product has worked great for both purposes. However, I have expanded my finance vehicles that I can offer to include the following:

-I am direct to a bond funding group who offers a relatively cheap financing program ($7MM per every one million dollars of financing requested, with a $140K cap). I can also put you in touch with a Joint Venture Partner who will pay this bond fee, in exchange for an equity position in your project, and/or, company.

-I am working with a Wall Street lender, who is offering an attractive refinance product. Rates are averaging between 4% to 5% APR. I know several of those ARM products that were marketed heavily before recession are starting to become due, so it might be advantageous to get into a longer-term Note.

-I work with a firm that offer a Non-recourse, Bank Guarantee product, where the principal/borrower needs to put up 1.5% of the project cost, which can be placed in escrow that will be used for the bank guarantee. There are a few other associated fees, however, since this is a non-recourse deal, the funding does not have to be paid back.

-The firm that offers the Non-Recourse, Bank Guarantee product, also offers a CD Reserve Programs, where funds are put into a CD, owned by the borrower/principal, and qualified projects are offered a 100% Joint Venture product. The Joint Venture carries a term and splits net projects with the principal. After the term, there is no money to pay back, allowing the owner to keep all the net profits over a short period of time.

-Lastly, I can offer a bank guarantee program where the principal/borrower can get a bridge loan to finance a cash backed bank guarantee. This group works with one private lender, who offers very attractive terms, as well as, interest deferments through construction or development. They also offer construction, and construction-to-permanent loan products.

If you think one of these products could help financing your project, please contact me at [e-mail].