| DEBT & EQUITY PLACEMENT
The pricing, terms and conditions of a loan vary depending upon the lender, property type, leasing status and overall market conditions. Understanding the real estate market, its economics and trends, combined with a strong network of lenders consisting of Life Insurance Companies, Banks, Agencies (Freddie Mac/Fannie Mae), Pension Funds and Private Equity Funds, allows Largo to provide its customers with the most competitive financing available today. Largo can secure financing for loans as low as $500,000 to $5,000,000 through its small loan program, as well as larger deals ranging from $5,000,000 and up.
Types of Loan Programs we Provide:
Permanent Financing
Fixed or floating rate financing for commercial mortgages starting at $500,000, with the loan term and amortization ranging from 5 to 30 years. The loan-to-value generally cannot exceed 75%, and the interest rate is priced over the corresponding US treasury rate. Typically, a permanent mortgage acts as a take out of the existing mortgage or construction financing.
(Back to top)
Construction Loan
Construction financing helps the borrower obtain the necessary funding for the development of their commercial project. The loan term is generally only 2 to 3 years, and their is often an interest only component. The interest rate is priced over LIBOR and is funded on a floating rate basis. Upon completion, the construction loan is converted into a permanent loan to takeout the construction financing.
(Back to top)
Fannie Mae/Freddie Mac
The most aggressive type of financing currently available for multi-family properties. The loans are priced over the corresponding US treasury, and can reach a loan-to-value of up to 80%. Typical loan term ranges from 5 to 30 years with up to a 30 year amortization schedule.
(Back to top)
Mezzanine Financing
A hybrid of debt and equity financing that is generally used to financing the expansion of an existing company and is aggressively priced. It is a short-term loan, typically 3-years, provided behind the existing mortgage. The interest rate is priced over LIBOR, and the loan proceeds typically will not exceed 85% loan-to-value.
(Back to top)
Joint Venture/Equity
This short-term loan provides the borrower with equity, or a portion of the equity needed to complete the development of a commercial project.
(Back to top)
Bridge Loan
Interim financing until permanent or the next stage of financing can be obtained. Money from the new financing is generally used to take out the bridge loan. Typically, more expensive than conventional financing to compensate for the additional risk of the loan.
(Back to top)
Credit Lease Financing
Enables borrowers seeking to finance properties, which are net leased to investment grade tenants. The loan can either be short or long term.
(Back to top)
|