Construction Loan

A Construction Loan is a short-term loan to pay for the building of a  house and the lender will pay out the money in stages. Construction loans are typically short term with a maximum of one year and have variable rates that move up and down with the prime rate. To gain approval, the lender will need to see a construction timetable, detailed plans and a realistic budget.

Mezzanine Loans

Mezzanine loans are a type of financing that fills the gap between senior loans and a borrower’s equity in projects like real estate developments or business acquisitions. They offer flexibility and require no physical collateral but come with higher interest rates since they are riskier for lenders. If the borrower defaults, these loans are repaid after senior loans but before equity holders. Mezzanine financing is ideal for borrowers needing extra funds without giving up control and for lenders seeking higher returns, often including interest and profit-sharing.

Long-Term Permanent Financing

Long-term permanent financing is a loan designed to provide stable, long-term funding for assets like commercial real estate, infrastructure projects, or other significant investments. It typically comes after short-term financing, such as construction loans, and is used once the asset is operational and generating income. These loans usually have fixed interest rates and repayment periods ranging from 10 to 30 years, making them suitable for borrowers seeking predictable and sustained financing over an extended period.

Acquisition Financing

Acquisition Financing refers to loans used to purchase assets, such as commercial properties, businesses, or equipment. It helps borrowers secure the funds needed upfront while allowing repayment over time, often tailored to the cash flow of the acquired asset.

Refinancing

Refinancing involves replacing an existing loan with a new one, often to secure better terms like lower interest rates, extend the repayment period, or access additional funds. It’s commonly used to reduce borrowing costs, consolidate debt, or free up equity in a property or asset.

Forward Commitments

Forward Commitments are agreements where a lender promises to provide financing at a future date, typically for a project that is not yet complete or ready for occupancy. These commitments are common in real estate development, allowing borrowers to secure terms in advance, such as interest rates or loan amounts, before construction is finished or the property generates income. Forward commitments reduce uncertainty for borrowers by locking in financing, though they may include conditions like completing the project on schedule and meeting performance benchmarks.

Joint Venture Financing

Joint Venture Financing is a partnership where two or more parties pool their resources, such as capital, expertise, or assets, to fund and develop a project, often in real estate or business ventures. Each party shares in the project’s risks, costs, and profits based on their agreed ownership stake. This type of financing allows participants to take on larger projects than they could independently, leveraging combined strengths while spreading financial and operational responsibilities.