(A&D loan) a loan where a part of the proceeds are used to buy the property. Project cost include the cost of the land, hard…
An affiliate is any business entity owned by the Borrower or Guarantor that is not involved in the transaction. Financial information, such as tax returns…
Transfers between two (2) financial institutions either Commercial Retail or Investment.
A set of ordinary and usual items to be followed or spelled out for one to follow and that will guide the person through a…
Purchasing of a company or Merging with one to build on the strengths or weakness of the acquired company.
Under The U.S. Securities and Exchange Commission, An organization which invests in small companies during initial development stages. The company includes private investors and is…
An entity that is formed and administered as per commercial law in order to engage in business activities. Business entities are formed to sell a…
You skip the interest payments for a period of time. However, you still owe the money and you'll have to pay eventually. This adds the…
Equity is liquidated from a property above and beyond sum of the payoff of existing loans held in lien on the property. VII allows this…
A confirmation of certain characteristics of a person or organization. This confirmation is often, but not always, provided by some form of external review, education,…
Thanks to freedom from regulation, the commercial lending industry operates with particular speed and responsiveness, making it an attractive option for those seeking quick funding.…
Commercial mortgages are structured to meet the needs of the borrower and the lender. Key terms include the loan amount, interest rate, term, amortization schedule,…
Commercial mortgages are structured to meet the needs of the borrower and the lender. Key terms include the loan amount, interest rate, term, amortization schedule,…
A State governmental agency that oversees the construction industry with certification and licensing. Continuing education is required with most agencies to reflect the changes in…
A loan that is not insured or guaranteed by the federal government.
A debt-based funding that a business can set up with a financial institution. These loans may be used to fund large capital expenditures and operations.…
In some cases, a low LTV (loan-to-values) does not facilitate a loan sufficient to pay off the existing mortgage lender, in order for the new…
Borrowing money but not relinquishing ownership in the process. This comes with stick conditions and having to pay interest and principles at prearranged time frame.
An application of technology or techniques to the production of new goods, services, land and or building
A comprehensive list of documents required by a lender to substantiate, verify and corroborate the borrower's claims pertaining to their loan request. VII has a…
An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to a sale. Officers of companies have…
Research and financial analysis of a company or organization done in preparation for a business transaction. Lender are experiencing that it takes more time and…
This is a replacement of a first (1) mortgage with another mortgage in order to take our equity in the equipment for working capital or…
A method of granting or extending financing to a company for the purpose of purchasing equipment.
Is a process of a company or individual raising capital via selling of shares in that enterprise. A sale of an ownership interest either through…
Is a process of a company or individual raising capital via selling of shares in that enterprise. A sale of an ownership interest either through…
Made up of a group of Partners and Officers associated with VI to review all the due diligence and the Business Valuation / Inspection of…
The act of disbursing funds for payments with goods and services as well an accounting of such payments or future payments.
The state a file is placed into due to the borrower not following a condition while in the Term Sheet process” or after, during restructuring.…
Files have normal conditions and a process to follow. Sometimes clients do not follow the agreed upon process. Borrowers who do not will be in…
Refers to the amount and type of funds to which a lender has access to in making loans, the systematic formulation of bases that affect…
The ability to facilitate and enhance economic processes, manage risks, and absorb shocks. Financial stability is considered a continuum: changeable over time and consistent with…
Refers to a loan where all income and assets are documented and verified by the lender.
Financing energy efficient upgrades or renewable energy installations in a building whether commercial or residential.
Hard Money is a loan secured by the value of a real estate property, they are generally more expensive than traditional sub-prime mortgages. However all…
A part of the economy involving the manufacturing and transportation of products.
A loan set or a term and the borrower only pays interest on the principle balance with the principle balance not being decreased, usual a…
Commercial mortgages may have fixed-rates with amortization, Variable amortization or interest only. Fixed-rate mortgages on stabilized commercial real estate are generally priced based on a…
Financing of an international loan for trade or otherwise.
A funding arraignment were debt financing is made with a financial institution.
A property would be considered as an investment if it is 100% leased to tenants that are unrelated to the owner, or the owner's business…
An arraignment between two (2) or more parties agree to pool their investments to accomplish a special business venture.
From inception, Private Money has always been formally unregulated by state or federal laws, although some restrictions on interest rates (usury laws) by state governments…
From inception, Private Money has always been formally unregulated by state or federal laws, although some restrictions on interest rates (usury laws) by state governments…
Classified as different types of loans that a lender can offer, such as debt, equity, stock options, lines of credit etc.
A document that expresses an offer to lend with rates and terms. The letter of intent explains a simple process and contains basic conditions that…
A maximum loan amount a financial institution or other lender will allow a borrower to maintain.
Loan to Value, A lending risk assessment that lenders examine before any approval. Assessments with high LTV ratios are seen as higher risk and, therefore…
A Matrix provides the comprehensive LTV, CLTV, and HCLTV ratio requirements for conventional first mortgages eligible for lending. The Matrix also includes credit score, minimum…
(Medium term notes) a bond note that is unconventional with a maturity period continually offered through various brokers.
Non-Circumvent Non-Disclose refers to an agreement between parties not to share information outside of the relationship as with information in a named transaction and or…
An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to a sale. Officers of companies have…
A mortgage loan secured by commercial property, such as an office building, shopping center, industrial warehouse, or apartment complex, Hotel, Gas Station etc. The proceeds…
Are often used to purchase buildings or businesses by which a financial institution will not perform due to situations outside of the set normal conditions…
A loan that is secured by collateral i.e. property. If the loan defaults the lender may seize the property but cannot attach the personal assets…
In commercial real estate, owner occupied is defined as a property that is at least 51% occupied by a business owned by the principals/guarantors. Please…
A clause in a mortgage contract that says if the mortgage is prepaid within a certain time period, a penalty will be assessed. The penalty…
A prepayment penalty, also known as a “prepay” in the industry, this is an agreement between a borrower and the lender that regulates what the…
Loans made by a private lender to a borrower outside of the normal channels.
Qualities found in a project that when analyzed increase the worth of an investment to be made and or surpasses the risk of lending on…
A legal document which defines the final understanding of two parties who agree to buy and or sell with specified item(s) under stated terms and…
The gain or loss on an investment over a specified period of time, this is expressed as a percentage increase over the initial investment cost.…
Commercial mortgages may be recourse or non-recourse depending on the lender. A recourse mortgage is supplemented by a general obligation of the borrower or a…
Upon completion of all due diligence and final review, a loan may be placed with one of our partners and or associates for loan restructuring…
A loan that was offered one type of financing is offered another type including changes in rate and term. Offers include Equity, JV, debt and…
Department, Warehouses, Discount and Shopping Malls, all sell to the general public and are in selected zoning locations.
Measures the amount of return on an investment relative to the investment cost. The return of an investment is divided by the cost of the…
A system and process of evaluating the risks that may be involved in a project, activity or undertaking in a market
Standby Letter of Credit / Bank Guarantee (Bank Transmittal code - MT-760). A written commitment by a bank that issues it to pay a certain…
Secured loans are those protected by an asset or collateral of some type. Unsecured loans are the opposite as they have no collateral or asset…
Commonly associated with properties that are either designed or are modified for a particular type of tenant. They are not suitable for multi-use (use by…
A bank issues a guarantee payment on behalf of a client should the client fail to fulfil a contractual commitment with a third party (payment…
Refers to the Capital required to start a new business i.e. office space, permits, licenses, inventory, products, marketing etc.
A public or private company loans an agreed upon number of shares, derivative or other security to an investor or firm for the purpose of…
A public or private company loans an agreed upon number of shares, derivative or other security to an investor or firm for the purpose of…
The term of a commercial mortgage is generally between five and ten years for stabilized commercial properties with established cash flows (sometimes called "permanent loans").…
A document which contains rates, terms, conditions along with some type of commitment to fund based on a set of predetermined conditions being followed as…
An individual or entity that is hired in a Transaction to perform a valuation (appraisal) and is not one of the principles. The third party…
Many commercial mortgage lenders require an application fee or good-faith deposit, which is typically used by the lender to cover underwriting. Other expenses such as…
Lenders usually require a minimum debt service coverage ratio which typically ranges from 1.1 to 1.4; the ratio is net cash flow (the income the…
Involves changing the zoning designation of a neighborhood to allow taller, boxier buildings than were allowed previously)
VI can invest up to $40,000.00 dollars performing due diligence on any one file. These funds are spent on in-house employees and others who perform…
A written document or email sent via electronic or postal mail delivery systemthat requires the borrower to perform according toa set of predetermined conditions or…