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Project Financing
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Providers and Seekers of Project
Financing can link in the "Leads & Request" section:
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International
Construction Loans
The option of International
Construction Loan funding is used in the
financial market place for clients who are seeking to fund a
construction project (domestic or foreign) and wish to immediately
obtain funding without the time consuming underwriting process dictated by
conventional lending institutions such as banks.
This option is a
source of funds that offers the following:
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Minimal underwriting
requirements,
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Interest rates of 2 to 3
points over the 6 month LIBOR during construction;
1 to 2 points over
LIBOR for permanent financing.
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No application fees of any
kind.
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Funding for any feasible
construction or rehab project in the world.
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Funding amounts from
$5,000,000 to $100,000,000.
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Funding for
income properties, residential developments, resorts, and much more!
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Funding in as little as
four weeks from receipt of documentation.
The following requirements
are generally relevant:
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A complete project book
providing a full description of the proposed project. If available,
also forward a current feasibility
study and appraisal that prove more information on the project.
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No “Funds First” requests
are normally accepted.
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Usually no proposals from
“Guaranty” companies or so-called “Credit Enhancement”
entities are normally entertained.
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Developer may be required
to supply Performance and Completion Bonds. Local architects may be
contracted with for inspections for fund disbursements.
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A Letter of Credit is
required and may be supplied by the client. If by the
client then:
Client must produce a
verifiable Standby Letter of Credit from a reputable domestic bank
for 13% of the cost of construction or Financial Guarantee Bond from
a A rated, or better insurer for 10% of the construction amount
desired including closing fees of 4% to 6%. A bank will normally
issue an “Intent to Issue” at no charge to client.
If asked to
provide a Letter of Credit:
An average charge of 8% of the face amount of the Letter of Credit
to arrange this instrument. This fee is payable within 3 days prior
to issuance.
This program is very
desirable for those wishing to limit the leverage on their assets
and can be usually be arranged within 10 days of initiating paperwork.
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For consideration of a
clients’ request the following is usually required:
A.) Assurance that the
client can produce one of the instruments as indicated above.
The simplest means to accomplish this is with the “Intent to Issue”
bank letter or enlisting services to provide the Letter of Credit.
B.) Completion of Non
Disclosure-Non Circumvent and Fee Agreements to be forwarded to the
client upon receipt of complete project information as indicated
above.
Submitting brokers must have
their own fee agreements stipulating payment to them from proceeds after
the close of the transaction or in some other form mutually acceptable
to the broker and client.
Upon acceptable receipt of the above items a Letter of Commitment will
usually be issued subject to a Financial Guarantee Bond or Letter
of Credit. Upon execution of the Letter of Commitment and
verification/approval of the guarantee instrument, funds will generally
be available within 30 days.
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