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Transaction
Types |
Loan proceeds may be used for any number of business and
commercial purposes and often aid the borrower in taking
advantage of pending opportunities. The ability to rapidly
transform existing real estate equity to cash is often the
difference between being able to take advantage of an
opportunity or letting it pass. The following is a list of
some of the most common types of situations in which loan
proceeds may be used.
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Property
Acquisition
There are a variety of ways in which bridge financing can
help facilitate the acquisition of real estate. Using
other collateral to finance all or a portion of the down
payment, or providing temporary first lien financing after
the down payment, are only two of the possibilities. In
other situations, funds may be needed to extend a closing
date or due diligence period, or provide soft costs in
connection with obtaining a building or other permit prior
to closing. |
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Investments
Loan proceeds can be used to start a business, help
finance an existing business, purchase partnership or
other interests, or buy out a partner or associate. |
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Refinancing
There are times when it is advantageous to refinance
property. In some cases a due date that the parties
believed could be extended, could not, and there is
insufficient time to acquire conventional financing. In
other cases, the holder of a mortgage has offered, or
previously agreed to, a discount for early payment. |
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Tenant
Improvements
When a property owner enters into a lease, particularly of
a substantial amount of office or other space, the cost of
completing improvements required by the tenant prior to
the commencement of the lease can be substantial. Since
recovery of the amounts spent in this endeavor will be
spread out over the lease term, financing is often sought
to fund the initial investment. |
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Construction
Equity Funding can facilitate these loans as long as
sufficient equity is available in the underlying land
and/or additional collateral from the borrower. This type
of loan can help fund the project from inception, or help
with overruns as construction is being completed. |
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Copyright © 1987
- 2012 Equity Funding. All Rights Reserved.
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