In today’s challenging economy, many businesses that have gone to the bank in the past to fund a large project are finding the bank’s underwriting guidelines are becoming tighter and tighter, making it harder than ever to qualify for traditional financing. Our private investor partners, however, would rather invest in sound projects with fixed assets than in the stock market where their money is at a greater risk. Large projects can be funded with these private investment companies much quicker and typically with less documentation than what is required by the bank. Projects could consist of a development project, venture capital for a new idea, gas and mining exploration financing, equity financing, mezzanine financing and many more.
A land developer in Florida had undeveloped oceanfront property valued at $15,000,000 which he owned, free and clear. He had plans to construct a hotel and restaurant on the property, but due to recent foreclosures in Florida, no banks were lending on construction projects in that area. He needed approximately $10,000,000 to start and complete his project. Through a private investment lender, a deal was structured where the lender used the property as additional security and the lender proceeded to fund the construction loan.
|Amount of loan:||$10,000,000|
|Total time to close:||2 Months|