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Hybrid Program Overview We are happy to present a very nice program where we can fund 80% to 100% of the project (plus some of the points fee can be added to the funding). It is a non-recourse loan with up to 5 years interest only at approx. 7.5% interest rate. Please note that there is a minimum loan amount of $20,000,000. Below is a general outline of the Hybrid Funding Program process. 1] SEND IN LOAN APPLICATION, FEE AGREEMENT, PROJECT SUMMARY, VERIFY THE 2.5% FOR ESCROW (Bank Statement) 2] SEND IN UP TO 5YR PRO FORMA (Whatever is Applicable) MAKE SURE THE RETURN IS 19% OR BETTER / THEN NO APPRAISAL SHOULD BE NEEDED DRAW SCHED /WITH TIMELINES DETAILED BUS PLAN RECENT APPRAISAL IF AVAILABLE PRINCIPLE BIOS /BUILDER 3] AN LOI WILL BE SENT IN APPROXIMATELY 10 BUSINESS DAYS. 4] 2.5% GOES INTO ESCROW 5] FINISHING UP WITH UNDERWRITING, AN APPROVAL, MOVING INTO DOCS AND FUNDING. THE WHOLE PROCESS TAKES 45 TO 60 DAYS, DEPENDING ON THE STACK OF FILES. 6] FUNDS ARE RELEASED FROM ESCROW, WHEN LOAN FUNDS ARE VERIFIED, ACTUAL AVAILABILITY WILL BE 2 WEEKS AFTER THAT. LENDER WILL BE ABLE TO PROVIDE REFERENCES AFTER EXECUTION OF THE LOI. Standby Letter of Credit Standby Letters of Credit and Bank Guarantees are bank instruments that are obtained through Attorneys, Hedge Funds, and Investment Bankers. It is usually a two step process that requires an issuer of a credit enhancement and a lender to lend against the instruments. The process is for the borrower to file an application package and proof of ability to pay for the Standby Letter of Credit/Bank Guarantee at which time the borrower receives and signs an irrevocable commitment and wire the commitment fee in escrow. We then arrange with a Tier 1 World Bank; such as (HSBC London, UBS, Barclays, Deustsche Bank, JP Morgan/Chase or Credit Suisse) for the issuance of the standby letter of credit by depositing cash in the face amount of the letter with that bank. Depending on our provider, the process takes anywhere from 10 days to 30 days from the time the commitment fee is placed in escrow. The commitment fee is paid to the lender and is 100% refundable is the lender does not provide an irrevocable commitment to fund. Once the Standby Letter of Credit is delivered to the borrower’s lender bank to bank via SWIFT, the Standby Letter of Credit is then verified and the transaction funds. Description of Instrument: 1. Instrument: Standby Letter of Credit (SBLC) 2. Total Face Value: USD 5Million (Min) to USD 10Billion (Max) 3. Issuing Bank: HSBC Bank London, Credit Suisse Zurich, JP Morgan Chase, and Deutsch Bank AG. Frankfurt Germany or any AAA Rated Bank. 4. Age: One Year and One Day 5. Price: 8.7% of Face Value plus 2% commission fees to brokers. $50k processing fee 6. Delivery: Bank-To-Bank Swift. 7. Payment: By MT103 Payment 8. Hard Copy: Bonded Courier within 7 banking days Description of Financing: 1. Financing: Interest Only Loan 2. 5.5% interest only 3. Payments are Annually or Semi Annually 4. Lender’s Commitment Fee (Escrowed fully refundable) $80k to $150k 5. Lender’s Fee 6 points (paid @ closing) plus 2% to brokers |
| Jalin Realty Capital Advisors LLC 2006 - 2009 1-866-925-8506 toll free 267-395-0166 Fax |
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