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"We Consult on ALL these options, and Structure, help Prepare then Deliver to the BEST Financial Resources."
(We usually share points and fees with DEBT providers.) LUCRATIVE REFERRAL PROGRAM.
Table of Contents
Sources
- Conventional Banks
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- Community Banks
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- Credit Unions
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- Non-Bank Lenders
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- Alternative Lenders
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- Bridge Lenders
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- Retirement Accounts
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- Local Family Offices
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- Insurance Companies
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- Pension Funds
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- Incubators
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- Community Collaboratives
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- Government (CDC/SBA, HUD, FHA, FIRREA, FNMA, GNMA)
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- High-Net-Worth / Private Individuals
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Specialties
- Cash-Flow Lenders
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- Equipment Lenders
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- Vehicle Lenders
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- Single-Family Lenders
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- Commercial-Only Lenders
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- Hard-Money Lenders
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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; waiving CERTAIN fees through Sepember 2022).
- 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."
(We usually share points and fees with DEBT providers.) LUCRATIVE REFERRAL PROGRAM.
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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
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Costs - approximate
- Interest
- Fed Rate + 3% or more (currently 7% - 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)
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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
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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 © 2018-2022, Prosper Systems LLC, Denver CO USA. All rights reserved. Latest update, 11/27/2022, KHJ
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