Mezzanine Finance – Commercial Property Loans
Assistance for businesses seeking to purchase commercial properties.
Loans for persons who do not have the funds to invest in commercial/industrial property readily available.
Never miss out on a property investment opportunity again – get a commercial property loan 100%
When purchasing a commercial or industrial property, the banks and lenders will normally only provide you 70 % of the purchase price as a loan. You as the buyer must put in at least 30 % of the property purchase price as a deposit.
Our mezzanine lenders will put in your deposit for a 30% share of the ‘upside’ profit at year 3 of the loan. At year 3 they wish to exit the loan and so you will have to find an alternative lender to refund the 30 % deposit and also pay them out their 30 % profit share.
The advantage to you is that if you see a good property but do not have the required bank deposit, you can still buy the property on the OPM basis…Other Peoples Money. You will be 100 % owner and manage the property. Very good for persons that do not have the required funding to go into property investments and have identified good opportunities.
REQUIRED DOCUMENTS
STEP 1: Signed Mandate to Proceed / Professional fee agreement (Third Party Payment instruction)
STEP 2:
- Name of entity requiring funds
- Company registration documents
- Proof of registered, head office and business addresses
- Income tax clearance certificate
- VAT Registration number
- Latest Financial statements
- Directors/Shareholders copy of ID and FICA requirements
- Suretyships details i.e. Name, ID, FICA requirements
- 3 months of latest bank statements
- An audit certificate of solvency
- Copy of title deed of property offered as security
- An independent valuation of the property
- Copy of the latest rates account
- Exit strategy – a detailed description of how the loan will be paid back
- Documents/undertakings/business plans/future property sales etc.
Once this has been assessed by the credit committee, a decline or AIP (Approval In Principle) is issued. The AIP will indicate the “subject to” conditions relating to the loan.
Once all suspensive conditions have been fulfilled and accepted by the credit committee, funds are released to the client. This process should not take more than 10 days ( from when ALL the supporting documents have been presented). It is essential to have all documentation as required, in order for the process to take place quickly and effectively.
THE BELOW FORM APPLIES TO THE ABOVE PRODUCT ONLY. PLEASE ONLY SUBMIT THE FORM ONCE AND CHECK YOUR INBOX FOR A CONFIRMATION EMAIL.