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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.
Sources
- Conventional Banks
- Government (SBA, HUD)
- Community Banks
- Credit Unions
- Non-Bank Lenders
- Alternative Lenders
- Bridge Lenders
- Local Family Offices
- Insurance Companies
- Pension Funds
- Incubators
- Community Collaboratives
- High-Net-Worth / Private Individuals
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Specialties
- Cash Flow Lenders
- Equipment Lenders
- Vehicle Lenders
- Real Estate Lenders
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Types
- Conventional (50%-80% 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 fees and first $9,000 in payments through Sepember 2021).
- EMERGENCY LOANS and GRANTS available - see Emergency FINANCE Options page for DETAILS
- 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
- 3% - 12%
- Up to 15% for "hard-money" and high-risk loans
- Possible adjustment proportional to the Loan-to-Value (LTV) Ratio and Duration
- Fees - not all levied
- Initiation/Consulting - 2-6%, minimum $2000
- Origination - 1-3%
- Bank Participation (SBA) - 0.5%
- Total - 0-6%
- Obtain estimate as early as possible
- Possible negotiation based on volume and intermediaries
- Pass-Throughs
- Business Credit Report
- Verifications
- Appraisals
- Survey
- Title
- Recording
- Inspection
- Travel
- Permits
- Legal - 0.05%, minimum $2000
- Negotiated Code/Habitability Maintenance
- At Closing
- Down Payment
- Property Taxes
- Prorated Interest
- Liens
- Balance of Current Loan(s)
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Loan-to-Value (LTV) and Loan-to-Cost (LTC) - approximate
- Normal
- 50% - 80%
- Based on current or after-updated / repair / rehab value
- Government
- Refinance
- Up to 100%
- Conventional, Private, Government
Duration
- Asset-only, 1-2 years
- 5-25 years, though may amortize for longer
Buying Businesses
- Set up Lenders in advance based on the collateral to be acquired
- Be their salesman or consultant for equity and subsistence compensation until you own the company
- Start implementing your growth policies in advance
- You'll also learn quickly if you want the company
- Other options
- Owner Carry
- Profit Participation
- Build relationship so Seller wants you at the helm, not an impersonal Buyer from a different region or culture
- Preparation
- Coordinate clearly with key employees
- Seller could finance equipment, real estate, cash-flow, etc to maximum - loans assumed on purchase
↑ Submittal Requirements - not all requested by each Source - We Sequence, Streamline and Optimize Applications
- Project
- Name
- Description (one paragraph, include remainder)
–––––– optionals follow ––––––
- Location
- Govt Approvals (permits, planning commission, etc)
- Franchise (disclosure documents)
- Request
- Purpose (acquisition - full/partial, refinance, cash out; asset, business)
- Amount (us$)
- Down Payment (us$, max)
- APR (maximum; fixed or floating)
- Owner carry (% range; agreement)
–––––– optionals follow ––––––
- Term (years)
- Use of Funds (RE, construction costs, equipment, cash out etc; schedule, by year)
- Business Documents (attachment or online link)
- Business Plan
- Executive Summary (condensed Business Plan)
- Pitch Deck (PPT or PDF with video or script; 10 slides of Executive Summary, to be presented in 20 minutes, in 30-point type)
- Overview ("Brief"/"Teaser;" condensed Executive Summary) Reviewed, No Charge/Obligation
–––––– optionals follow ––––––
- Private Placement Memorandum (for Equity only, based on Business Plan)
- Financials (entry, attachment or online link)
- Profit and Loss statement (2020 YTD; if 2019 tax returns not filed, 2019 P&L)
- Balance Sheet (<90 days old)
- Debt Schedule (business; current)
- Financial Projections (3-10 years)
–––––– optionals follow ––––––
- Sales Tax Rates (if any sales income)
- Tenant financial statements (single-tenant properties)
- Invested to date (us$M)
- Planning to invest in future (us$M)
- Income (last 2-3 years; business and personal with 20%+ interest)
- Tax Returns (last 2-3 years; business and personal with 20%+ interest)
- Operating statements (3 years)
- Sponsor (duplicate for each individual or entity with 20%+ interest)
- Full Name
- Credit Rating (personal/business; source; actual/estimate)
- Bio / Resume (for new ventures)
- Industry background (properties/businesses owned/managed, etc.)
–––––– optionals follow ––––––
- Foreclosures, bankruptcies, criminal issues (explanation)
- Net Worth (us$M)
- Liquidity (% immediately available)
- Proof of Funds (for transaction costs, down payment; statement)
- Passport
- Accept recourse (full or partial)
We Sequence, Streamline and Optimize Applications - Collateral (duplicate for each; make entry, attachment or online link)
- Type (RE, vehicle, equipment, patent, precious metals, gems)
- Address (include county)
- Estimated value (source; appraisal)
- Year (built, last renovated)
- Size (square feet/units)
–––––– optionals follow ––––––
- Purchase price
- Date of purchase
- Mortgage/Lien balances (statements and amortization schedules)
- Seasoning complete (if not, date)
- Pictures (number to sequence)
- Insurance policies (fire, theft, flood, loss, liability, etc)
- Other information (enhance value, clarifications)
- Real Estate Collateral (personal, commercial)
- New Purchase (LOI, Agreement, Contract)
- Owner occupied (%)
- Tenants (individuals, business & type, government subsidized, etc)
- Rent Roll (if tenant occupied; include extension/termination options, rent steps)
- Annual Income (rents, vending, etc)
- Expenses (taxes, insurance, maintenance, utilities, management, etc)
–––––– optionals follow ––––––
- Historical occupancy (3 years)
- Historical sales per square foot (retail properties, 3 years)
- Annual NOI (Annual Income less Expenses)
- Startups (if in business for less than 12 months; special category and documentation requirements)
- Business Type (real estate, technology, product, etc)
- Business Documents (see Documentation above)
- Location (virtual, home, office, facility; base address)
- Initial Funding (LOCs, credit cards, 2nd mortgages, F&F, suppliers, customers, associates, notes, seed, etc)
- Legal Structure (sole, partnership, LLC, Sub-S, C-Corp, non-profit)
- Trade Name
- Govt Approvals (zoning, permits/registrations/licenses)
- Patents (submitted, approved)
–––––– optionals follow ––––––
- Initial Costs (inventory, deposits, equipment, real estate, office setup, accounting, hiring, etc)
- Business Costs (space, marketing, total payroll, prof services, insurances, vehicle, maintenances, travel, etc)
- Payroll Registrations (W-2, 1099, work comp, disability; local, state, fed)
- Payroll Compliance (employees, independent contractors)
- Insurances (officers, fire, vehicle, liability, etc)
- Accounting System (method, software)
- Tax Identification
- Personal Income Requirements (years 1, 2, 3-5)
- Professionals (attorney, accountant, bookkeeper, consultants)
- Groups (LinkedIn, Facebook, Meetup, clubs, chambers)
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More
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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 © 2018-2021, Prosper Systems LLC, Denver CO USA. All rights reserved. Latest update, 3/15/2021, KHJ
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