|
"We Consult on ALL these options, and Structure, help Prepare then Deliver to the BEST Financial Resources."
LUCRATIVE REFERRAL PROGRAM.
Table of Contents
Sources
- Conventional Banks
|
- Community Banks
|
- Credit Unions
|
- Non-Bank Lenders
|
- Alternative Lenders
|
- Bridge Lenders
|
- Retirement Accounts
|
- Local Family Offices
|
- Insurance Companies
|
- Pension Funds
|
- Incubators
|
- Community Collaboratives
|
- Agency (CDC/SBA, HUD, FHA, FIRREA, FNMA, FHLMC, GNMA, C-PACE)
|
- High-Net-Worth / Private Individuals
|
Specialties
- Cash-Flow Lenders
|
- Equipment Lenders
|
- Vehicle Lenders
|
- Single-Family Lenders
|
- Commercial-Only Lenders
|
- Hard-Money Lenders
|
↑
Types
- Conventional (50%-90% Loan to Value, LTV - or Cost, LTC)
- Small Business Administration (SBA - up to 90% LTV or LTC on Commercial Real Estate or general business development; good interest rates).
- Housing and Urban Development / Federal Housing Authority (HUD/FHA insured - multifamily - health care, elderly, special needs - several, complex programs)
- Second (remaining 10%-35% LTV or LTC; higher interest rate; though most CRE lenders don't like to or are not allowed to take or work with a second position)
- Using Investment Capital for the 10%-30% loan down payments, optimizes your profit perspective - Contact Us for the most-lucrative solutions
- NEW: Factoring Invoices / AR & Payroll Financing
(up to 97%, as an Operating Expense vs Debt)
- Lines of Credit
- Revolving Seconds on home or assets; higher interest rate than fixed
- Under $30K; community banks and credit unions; unsecured, no/low documentation; higher interest rate after promo period
- Under $300K; services available to float one application to several lenders; some focus on those using the same higher credit bureau reducing inquiry hits; about 10% fee from proceeds; higher interest rate after promo period
- Note: 0%-interest promotional credit cards are available - but may accrue interest - and normally charge double-digit interest on balance after 0% term
- Participation (discounted equity purchases after completely paid off)
- Mezzanine (lender can convert to an equity interest in case of default, subordinate to senior lenders; higher interest rate)
- Convertible Note (considered an equity play)
- Syndicated Loan (combines sources to reduce risk,or for very large loans)
- Hard Money (based on asset value versus individual credit score; short term; higher interest rate)
- CrowdFinance (many, often small, contributors, generally through an online portal)
- Debt or Equity - equity portals require SEC registration
- Donation or pre-purchase of products or services
- Contact Us for creative combinations to accomplish 100% financing
"We Consult on ALL these options, and Structure, help Prepare then Deliver to the BEST Financial Resources."
LUCRATIVE REFERRAL PROGRAM.
↑
Other Sources
- Suppliers (who profit from your existence or growth)
- Customers
- Give a discount for a year for upfront cash
- Commit to a subscription model for a year
- Government contract with big payment up front
- Grants (Government, Veteran Benefit, Non-Profit, ...)
- Sponsorships (for sponsors' exposure on buildings/vehicles/marketing/websites, at events, ...)
- Government Programs that fit into local/national leadership agendas
- Owner Carry
- Seller finances the Buyer
- 1-2 years to launch project or business
- Longer if mutually beneficial
- The note can be sold for the lump sum Seller may need or prefer
- Loan Assumptions
- Public Offerings - Initial and Subsequent
↑
Costs - approximate
- Interest
- Fed Rate + 3% or more (currently 8% - 15%)
- Higher for "hard-money" and high-risk loans
- Possible adjustment proportional to the Loan-to-Value (LTV) Ratio and Duration
- Possible buy down with added points (paid by borrower or seller, mainly for cash flow and taxes, since the IRR over 5 years is about 1% reducing 7% interest down 0.25% at a cost of 1 point; about 2% IRR at 10 years; includes additional pricipal reduction)
- Fees - not all levied
- Initiation/Consulting - 1-3%, if needed, minimum $2000
- Origination - 1-3%
- Bank Participation (SBA) - 0.5%
- Total - 1-7%
- Obtain estimate as early as possible
- Possible negotiation based on volume and intermediaries
- Pass-Throughs
- Business Credit Report
- Verifications
- Appraisal
- Survey
- Title
- Recording
- Inspection
- Travel
- Permits
- Legal - 0.05%, minimum $2000
- Environmental Site Assessments
- Negotiated Code/Habitability Maintenance
- At Closing
- Down Payment
- Property Taxes
- Prorated Interest
- Liens
- Balance of Current Loan(s)
- 6-12 months of interst (high-risk loans)
↑
Loan-to-Value (LTV) and Loan-to-Cost (LTC) - approximate
- Normal
- 50% - 80%
- Based on current or after-updated / repair / rehab value
- Government
- Refinance
- Up to 100%
- Conventional, Private, Government
Duration (Term)
- Interest-only or Construction, up to 2 years
- 5-25 years, though may amortize for longer
Buying Businesses
- Set up Lenders in advance based on the collateral to be acquired
- Be their salesman or consultant for equity and subsistence compensation until you own the company
- Start implementing your growth policies in advance
- You'll also learn quickly if you want the company
- Other options
- Owner Carry
- Profit Participation
- Build relationship so Seller wants you at the helm, not an impersonal Buyer from a different region or culture
- Preparation
- Coordinate clearly with key employees
- Seller could finance equipment, real estate, cash-flow, etc to maximum - loans assumed on purchase
↑
Submittal Requirements - not all requested by each Source - We Sequence, Streamline and Optimize Applications
More
PROSPER SYSTEMS, LLC (.biz)
• Kenton H Johnson (.com), Founding Member
• COMPLIMENTARY Overview Review
LUCRATIVE REFERRAL PROGRAM
PS INTRODUCTION (for Info and Referrals)
Schedule a Call or Mtg (8am - 7pm USA Mtn Time, by Video/Audio Conference, Phone or In Person)
Copyright © 2018-2024, Prosper Systems LLC, Denver CO USA. All rights reserved. Latest update, 3/20/2024, KHJ
|
