Bridge Loans: Acquisition, Construction, Restructuring and Refinancing
LOAN AMOUNT: $100,000 and up.
BORROWER: Management and/or ownership should be experienced and should have strong liquidity.
LOAN TERM : 1 to 5 years, interest only (interest reserve allowed).
PREPAYMENTS: Loans may be prepaid at any time after the first anniversary of the loan with no prepayment penalties.
INTEREST RATE: 1-3 Month LIBROR index plus 400 - 900 bps
COLLATERAL: First mortgage on land, office, multifamily, special purpose properties, mixed used, retail strip malls, regional shopping centers, recreational, medical, warehousing, manufacturing, self-storage, hospitality (hotel/motels) or industrial properties, etc. -? income-producing, located anywhere in the USA and select countries around the world.
DSCR Minimum: 1.05
L-T-V RATIO:50% to 75% of As-Is Value by independent third party MAI appraisal.
USE OF LOAN: Proceeds may be used for land development, real estate acquisition, construction costs, equipment, working capital and closing costs (cash-out considered case by case).
PROCESSING: Approvals within 48 hours, commitments within 72 hours, and closings in as little as 30 business days.
EXIT FEE: In lieu of equity, a fee of 0% to 3.0% of the loan amount.
OTHER COSTS: Application Fee: $15,000 - $25,000 -- NON-REFUNDABLE if Loan Commitment is in compliance with lender?s Letter of Interest.
COMMITMENT FEE: Typically 2.0%-6.0%% of Loan Amount.
** As-Is Value defined as a cash sale within a 180-day marketing period
Initial Documentation Required to proceed to a Term Sheet/Letter of Interest:
Sponsorship Package -Bio's for all Principals (must include a list of current owned or previously owned real estate) -Financial Statements for Principals -Credit reports for all Principals (within the last 90 days) A completed Financing Request Form (see "Forms" tab at the top of this page). Executive Summary on the subject asset or, Offer Memorandum on the subject asset if the transaction is an acquisition Color Photos of the subject property (color rendering if new construction) Detailed Sources & Uses of Funds Detailed Construction Plans Detailed Construction Budget Five Year Detailed Performa Feasibility Study (if available) Asset/Business complete tax returns for the last three years Personal complete tax returns for the last three years on all Principals Current Asset/Business Balance Sheet and Profit and Loss Statement Previous Third Party Reports -Environmental -Engineering (property solutions report) -Appraisal -Owners Title Policy -General Inspections (roof, termite, etc.) -Survey Current Insurance Policies (copy of declaration page) Any other information you believe to be of importance please include
Palm Tree Financial cannot complete a proper review and ultimately produce terms and or a quote we can stand behind without a complete submission package from you. Kindly submit a complete package electronically, we prefer all packages to be submitted via email/electronically, we do have the capability to receive large files electronically. If you are not able to generate some of the required documentation, Palm Tree Financial does offer documentation services (e.g. Performas, Executive Summaries, Source & Uses of Funds, etc), please visit the tab at the top of our website "Documentation Services Offered" for more details.
If you are a referring Broker you must complete the PTFC Referral Agreement and accompany the Referral Agreement with your submission (this agreement is only required on your first submission). You can find PTFC's Referral Agreement under the "Partner with Us" tab at the top of this page). PTFC will not review any financing submission without an executed referral agreement by the referring Broker and or Third Party referring source.
General pre-screen turn times are 3-5 business days. PALM TREE FINANCIAL WILL NOT REVIEW ANY PROPOSAL FOR FINANCING THAT IS NOT A COMPLETE SUBMISSION FILE.
SPECIALIZING IN COMMERCIAL AND MULTI-FAMILY REAL ESTATE FINANCING