General Loan Categories
Multi-family is the category for loans for housing — from multiple rental units within a single building, up to small and large apartment complexes, and beyond. And multi-family is usually the easiest and most flexible to do, as these are backed by multiple governmental agencies (thus reducing the risk for the ultimate bank-lender). Where the government backs a loan portion, banks and other lenders will “step up to the plate” for such loans. Also, these loans are usually backed by the equity in the underlying real estate, thus reducing risk even further. As for the programs themselves, they vary widely: governmental programs include FHA, HUD, (or for rural areas) USDA, etc. And non-governmental programs available include private funders, and even “hard money” lenders where loans, usually based on equity, are executed very quickly, with no personal background check.
Which of these programs are best for you is really an individual, and situational choice. And that’s exactly why we’re here. For instance, while FHA or USDA will require the borrower to guarantee the loan with his personal resources, HUD loans do not require this (known as non-recourse). Additionally, HUD loans will amortize for longer terms (up to 35 years with full amortization), and come with VERY low rates: As of this writing, a HUD loan for multi-family are in the 3%’s, annually.
Further, depending on the complexity, we will often structure this with multiple resources: “first” position loans, mezzanine loans, bridge financing, etc.
Special Purpose Loans
The category known as Special Purpose is actually a catch all for several different types of businesses: Restaurants, Hotels, Gas Stations, Assisted Living Facilities, etc. These are a category more difficult to finance to finance than real estate-based, but a large number of our resources specialize in these types of loans — usually each one with a specific appetite for that particular category of loan; for instance, movie theaters. Click on the category type for more detail.
Like Special Purpose loans, this is also a category that is harder to finance: Entertainment Loans include those (usually considered higher risk) categories such as Water Parks, Amusement Parks and Piers, Golf Courses, Movie Theaters/Chains, etc. Again, these are more difficult to do; but we have gotten approvals for some of these types. Again, click on the category type for more detail.
Church loans also tend to be a specialized loan type. But we have various resources, from small to large. These are usually straight-forward, and relatively easy types of loans to get, and are usually based on your annual unrestricted tithes/offerings, time in ministry, and sometimes, Statement of Faith. –If you have need in this area, we would very much like to help you with this type of loan.
The term Conduit Loan is really a catch-all type of phrase that means, generally, Wall Street, large-amount and/or “securitized” loans. Once loan requirements begin to get into the tens and hundreds of millions of dollars, the only entities who can absorb this risk are the major international financial players. And then, at this level, they prefer to share the risk. But again, we have groups of lenders who specialize in this area; and if the deal “makes sense”, there is a great deal of money to deploy.
While the program types listed above are the general types, we also have a number of other loan types that tend to not fall as easily into category. And often, we will combine a number of these programs to help you achieve your goals. Click on the category type for more information in each area:
— If you’ve not already seen it, you really should look at this page on tax implications. Self-directed IRA’s (or SDIRA’s) enable you to chose where your IRA-investment money is places. This is a loan type that we will commonly use in combination with others to secure the degree of business financing needed. For instance, under SDIRA, you have the ability to invest in your own corporation. (Certain restrictions apply.) More importantly however — in fact, MOST importantly, in my belief — is the ability to use these loans for tax advantages.
Loans on Treasuries/Stock Portfolios
— This is also a loan type that we will commonly use in combination. Loans of this type are “secured” by the stock portfolio, and all of the ownership (including appreciation and depreciation) is still retained.
— Bridge loans are quick, temporary-need loans. They enable a business to borrow for short term (usually a year or so) — often, with less rigor in the paperwork, while we work at more length on the final loan. One of the advantages of this type of loan is that it may afford a business to begin to “earn” the one-year-in-business requirement for SBA loans.
— When securing new equipment, we have the ability to structure a lease (with or without buyout).
Medical Loans & Services
— Not only do we have resource specific for Medical Professional loans, but our resources include some additional services, such as Practice search, selection and acquisition, and/or disposition services.
We have control over our own Private Fund, where we often can span the gap between traditionally offered loans, and unique needs. From $100,000 to $20mm, loan decisions are in-house, and immediate.
Contact us to talk over your needs.
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Sarasota, FL 34277