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| | Commercial Loan
Closing Cost Escrow Loans...
If you are looking for help
with front-end financing of a
commercial loan
closing costs escrow loan transaction, then Rainmaker may be a valuable resource
in helping you close your loan out with maximized financial leverage. In
today's ultra-competitive business operating environment, the opportunity to
close a commercial loan escrow can be a harrowing task, especially if you don't
have immediate access to the funds necessary to pay the refundable points and
fees that commercial lenders require as a condition of application and/or
production of a loan commitment.
This program may be used for any of the following:
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All commercial mortgage loan
transactions; and/or |
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Commercial loans closed thru
a title company; and/or |
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Institutional structured
financings. |
This
program may NOT be used for owner-occupied residential real estate.
Program Terms,
Conditions & Limitations
This commercial finance program
is available based upon the following fee considerations:
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The initial fee is equal to
15% of the amount of the funds placed in escrow on behalf of the client.
This is accomplished thru the title company with a simple escrow instruction
that releases the initial 15% fee and instructs the title company to wire the
funds to the nominated account upon receipt by the title company of the funds
for the escrow funding. |
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Each 90 day period (or part
thereof) requires a payment of 15% of the amount of funds advanced on behalf
of the client. So, if the client extends their contract feasibility/soft
period beyond the 90 day limit, then an additional 15% initial fee payment
will be required. |
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If the escrow closes (loan
funded and/or purchase contract closed out), then the payment of a fee equal
to 100% of the funds advanced is due and payable at closing to the nominated
account. This is accomplished via an irrevocable escrow instruction
served on the title company by the client upfront. |
The conditions and limitations
of the program are:
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The maximum amount of funds
currently available changes, so you should check with us. Currently the
maximum amount of funds available for a given transaction is $500,000 (USD). |
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All transaction documentation
is subject our sole approval. |
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The processing time for a
transaction is 10 days. |
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There are no upfront fees. |
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Funds are only made available
to satisfy an escrow obligation that is refundable. No funds are
provided on an at-risk basis. This means:
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For commercial loans, we
will only fund refundable points and fees that are placed in escrow with the
title company - and not transmitted into the account of the lender. |
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For commercial real estate
acquisitions, we will only fund purchase escrows with the title company for
the period of time that funds are refundable as specified in the purchase
agreement. |
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If the funds advanced are not
replaced by the end of the feasibility/soft period, the transaction will be
terminated and the funds returned to the nominated account and not the
client's account (thus providing the required exit strategy mechanism that
allows the funds to be advanced on a risk-free basis). |
Example:
You need to obtain a
$10,000,000 commercial loan for your company. The term sheet provides you
with 90 days to complete the application process required for closing, but your
funds are limited. The term sheet specifies that a refundable fee equal to
one percent (1.0%) of the loan (or $100,000) is required upon your execution of
the term sheet. The funds are to be held at the title company and are
refundable if the loan is not approved and accepted by both parties, for any
reason, within a period of 90 days, after which, the funds are non-refundable if
the loan is accepted. You then have 30 days to close from the expiration
of the 90 day application period to close out the loan transaction. If you
pay the $100,000 out of your own fund, you won't have enough for your required
due diligence documents, studies, and third-party reports necessary to close on
the loan.
Subject to our conditions, we
will fund the $100,000 escrow and you pay $15,000 for us having done you this
service. This frees up $85,000 for you to use on the other necessary
reports, studies, designs, etc. and "buys" you 90 days to get your act together
and replace our $100,000 escrow advance. If you do not replace it by Day
89 of the application period, then we terminate the agreement and receive back
the $100,000 - case closed. If you do get your funding lined up by Day 89,
you wire us the sum of $100,000 and you move forward. At the closing of
the loan escrow, we are paid an additional $100,000 success fee inter alia with
the closing of the loan escrow, via an irrevocable escrow instruction to the
escrow agent - case closed. Contact us today to learn more
about what we can do together - you and
Rainmaker Marketing Corporation.
Sound like a plan to you?
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Do
You Know The Secret?
When it comes to commercial real
estate development finance, it doesn't matter whether you need to raise
$5 million or $50 million, the out-of-pocket costs, advance fees and
project due diligence costs will always require the same relative
investment dollars the promoters have to fund. Do you know what
that amount is? Do you know the Secret? |
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