Mco Financing
Consulting
Helping
You Make More Money!
Financing
As of
May, 2004, we can introduce our clients to a private individual interested in
financing 100% of US-based deals above $100 million. For residential or
commercial real estate developments costing $10 million and up, there is a 100%
LTC program available.
For deals
above $20 million we can arrange a 90%
to 95%, 30-year term, LIBOR +2 with up to a 10-year grace period with
absolutely NO upfront fees of any kind! There is a 10% collateral requirement
and the collateral must be cash or a cash equivalent. Real estate is not
accepted as collateral, but you retain 100% equity. Most other financing
programs take equity positions.
Up to $50
million can be raised via a Reg D
offering. Your total upfront costs for preparing the offering will not
exceed $7,200 plus directly related expenses which will always include travel
to meet with the client and a review fee of $1250 that does not go to Mco
Financing Consulting. When the offering is completed there will be de minimus
registration/notification fees connected to a few states after shares are sold
to their residents. You will need a great business plan and should have
an independently prepared feasibility study, although it is not an absolute
necessity. The fee quoted covers the actual development of the offering
material, proper legal review, all required notifications and/or registrations
(Federal and State) and the actual placement of the offering material with the
best-suited selling outlet. It also includes an updating and reorienting of
your business plan to more effectively interest potential investors.
Broker/dealers
receive a 10% commission for selling Reg D shares, however the net proceeds are
not reduced by that amount.
Mco
Financing Consulting receives a Finder’s Fee when a minimum amount of the
offering has been sold. Again, that fee, is incorporated into the offering’s
target and the net amount available to the client is not reduced by the
Finder’s Fee.
100% LTV
Financing is also available for projects exceeding $10 million...movies,
construction,
expansion,
refinance or acquisition needs, including start-ups! This program leaves your
property
lien-free
and you only pay simple interest
during the 10-year term. However, this program is difficult to qualify for and
requires a substantial escrow deposit…but is real and can sometimes be a useful
tool. James Cameron reportedly used it to get the final financing for
completing “Titanic.”
Still
another program for world-wide real estate developments above $50 million, uses
Zero Coupon Bonds and a public
offering to raise the funds. The Zero Coupon Bonds are bought in enough
quantity and at such a discount that there is no repayment of principal
required with this program.
After the
project has been accepted by the funding source and after a specific term sheet
has been issued, there are some costs associated with due diligence and
“offering-related” expenses. Generally, those costs can be expected to be 2% of
the amount being sought. Before paying them, however our clients will have a
chance to discuss their project (and ask questions) directly with the funding
source. Too, clients are usually given a chance to purchase an insurance policy
that guarantees to return the 2% fee if the funding is NOT completed within a
particular time frame. The insurance policy usually will cost another 2% and
its cost will also be refunded should the funds not be advanced within a
particular time frame.
So for a
probable 4% cost that is explained and fixed in advance, most clients should be
able to get their big, real-estate related development projects funded fairly
easily. For multi-phase projects, this is especially attractive because there
are no future costs associated with the next phases. Mco Financing Consulting
does not receive any of the funds associated with that 4% cost.
If you
would like a succinct summary of this program, just ask…
For
smaller, more traditional construction projects, we can easily arrange
financing equal to 70% of the appraised “completed” value and in almost every
instance, that amount will cover all development and construction costs.
Also
available is debt-equity financing
for start-ups, acquisitions and development projects. It is a blend of
traditional debt financing coupled with the infusion of cash from an
"equity" investor.
Typically,
the interest rate for the debt portion is between two and four points above
prime and
the
equity investor expects a yield of 20-25% including preferred interest, profits
and appreciation.
The
investor can usually be taken out at any time at an agreed upon price, or stay
in the project.
If you
have at least 6% cash or hard, clear equity to put in the deal, we can get you
the other 94%
via our
debt-equity financing program. Of course, you will also need credible
experience, a decent
financial
statement and a really good business plan!
Our services also encompass arranging 100% "off-balance-sheet" financing.
We can also arrange
Hard Money for
RESIDENTIAL properties. Up to 65% LTV for RESIDENTIAL
and almost all credit risks can qualify for either a FIRST or SECOND mortgage.
Perfect for re-financings, second homes or non-owner occupied properties -
$500,000 to $50 million. This is NOT cheap money, but is available when other
avenues are closed.
Hard Money for
Commercial properties. No upper limit on amount. Owner
must have equity in property and at least one exit plan that makes sense – two
is better! Money can be used for acquisition, re-financing, improvement or
development.
HUD 242 loan guarantees are now available for hospitals. They offer incredible
terms resulting in an AAA credit rating and are often the only way a hospital
can execute a major construction project.
To learn
more about how we might be of service to you, please send a quick email to
jmmco@charter.net to start a
rewarding conversation leading to the resolution of your
financing
needs.
Thanks for visiting!
Be sure
to bookmark the site before you leave and please contact us immediately
if you
have any questions or would like to discuss a particular situation.
314-795-2700
FAX 314-754-9744
Copyright
1999 through 2006 Mco Financing
Consulting