Small Commercial Expert: November 2012

Equity, Bridge & Mezzanine Financing - 105% LTV

Equity, Bridge & Mezzanine Financing can be structured in transactions that allow for 105% LTV and in some cases Loan to Values as high as 115%.  How is this possible?  With structured finance strategies, commercial real estate investors can leverage multiple forms of financing in the capital stack to achieve their goals.

Most distressed asset purchases made by commercial real estate professionals require money beyond the purchase price of the property.  When arranged properly, structured financed transactions can supply the money needed for down payment, senior debt, interest reserves during repair and money for the cost of repairs.

When one adds the cost of repairs and the interest reserve to the equation the needed LTV can exceed 105% of the purchase price and in some cases can reach up to 115%.  Equity can be used for the down payment, Bridge financing usually supplies the needed funds for the purchase and Mezzanine financing can be put in 2nd or even 3rd lien position to supply the rest of the needed capital to get a deal off the ground.

In many cases structured financing is put together by a capital markets professional hired within a commercial real estate firm that specialized in building and managing commercial real estate and multifamily portfolios.  However, in this capital constricted market, many firms have laid off these valuable professionals.  Today they seek to try and structure these deals themselves and must deal with multiple funders at one time.  it can be exhausting and daunting.

Recognizing that many structured deals fall apart because of lack of coordination, Dividend America Commercial Lending has leveraged its diverse funding/lending platform and it's unmatched industry knowledge to pull all these funding resources together under one umbrella.  With no upfront fees and reasonable due dilligence charges only charged at the time of LOI, Dividend America helps commercial real estate investors tap into Equity, Bridge & Mezzanine Financing to build structured financing arrangements that fit almost any situation.

Now firms with capital markets professionals on staff or in need of this valuable resource personnel can access the expertise needed to create successful funding structures that meet all their structured financing needs.  The diversity of the Dividend America lending platform gives companies playing in the distressed real estate markets a partner to source all the funding they need at every level of the capital stack.

To find out more about Equity, Bridge & Mezzanine financing and all aspects of funding through structured financing, contact the professionals at Dividend America Commercial Lending.  Providing more than just loans, providing lending solutions!

Call Michael Gross, President, Dividend America, LLC direct at 404-549-6756 or email him at mgross@dividendamerica.com.  For quick answers to your questions try the Online Easy App.

Dividend America has offices in Atlanta, GA and Scottsdale, AZ.  We arrange financing in all 50 states and like both primary and strong secondary markets.  Major cites we are seeking to lend in currently include:  Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, Fort Lauderdale, Orlando, San Diego, New York, San Francisco, Phoenix, Atlanta, Tampa Bay, Detroit, Minneapolis-Saint Paul, Charlotte, Dallas / Fort Worth, Portland, Seattle, Cleveland, Oklahoma City, Jacksonville, Indianapolis, Nashville, Kansas City, Louisville, Milwaukee, New Orleans, Philadelphia, Raleigh, Sacramento, Salt Lake City, San Antonio, San Jose, Saint Louis, Tucson, Austin, Baltimore.

Comment balloon 0 commentsMichael Gross • November 16 2012 08:05AM
Equity, Bridge & Mezzanine Financing - 105% LTV
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