In today’s difficult capital
market, BankerBroker.com is a powerful
and strategic resource with an enviable track record of financing success,
especially for projects unable to obtain needed capital from conventional
sources.
For one thing, BankerBroker.com is an ideal intermediary between the client in
need of financing – especially those with challenging projects – and the
hundreds of private and institutional sources of commercial capital with whom BankerBroker.com
has strong, active and productive
relationships.
For another, BankerBroker.com ’s financing specialists have
in-depth knowledge, market expertise, and a commitment to client advocacy that
translates into the kind of creative, value-enhancing insight needed to
evaluate, restructure, and customize previously difficult-to-fund transactions
into new financing opportunities.
Equity
Equity financing is an important option for BankerBroker.com clients to consider as they explore the gamut
of funding solutions available. When it comes to equity investment, the
experience and knowledge of BankerBroker.com professionals is unmatched in the industry, which
is why BankerBroker.com professionals
often are called upon to identify appropriate equity partners for clients
seeking equity assistance.
Mezzanine
Debt
For those commercial real estate and other businesses looking to add debt
rather than equity when senior debt is maxed out near 70% LTV, borrowers may
want to consider mezzanine financing. One of the uses of mezzanine debt is to
add as much leverage as possible by increasing LTV to about 75-90%. It is also
common for real estate developers to secure mezzanine loans when supplemental
financing is needed.
Senior
Debt
In the typical capital structure for commercial real estate, senior debt
usually accounts for 50-70% of the capital stack. By definition, senior debt is
just that. It is senior to equity and all other forms
of mezzanine (junior, subordinated) debt. As such, senior debt stands first in
line before all other creditors for interest and principal payments and, in the
event of liquidation, the repayment of debt. Most senior debt on commercial
real estate is amortized over 15 to 40 years, with interest rates, either fixed
or floating. Rates tend to be based on the quality of the collateral involved
and the property’s historic cash flow, with higher rates tied to the degree of
risk involved