Providence Capital Advisors has partnered with an International Investment Banking Firm that will entertain Purchase- Acquisition& Development Loans at a very high Loan-to-Value. In today's economy it is extremely difficult to secure funding for these types of deals, but we can.  

A 98% Joint Venture Commercial Funding. This funding transaction is an equity purchase transaction, not a borrower based loan, and the joint venture funds 98%. The joint venture takes up to 50% of the equity in the project.  After an LOU, there is a 2% due diligence fee, which is fully insured and 100% refundable should the funding not close. If the project makes sense, it gets done. Minimum Loan Size: $5 Million - No Maximum. Proof of funds for the 2% must be provided before the LOU is initiated.

This particular financing program is directed toward projects that have either a "Green" or "Humanitarian" component to their development. We also have a very large appetite for International Resort Developments, Hotels, Casinos and Alt. energy type projects. Any commercial development projects that promote job creation endeavors or economic stimulus will be considered.

General Terms / Guidelines: 

• 2 % initial capital contribution required at time of project submission (fully insured and refundable if project does not fund). ( $200,000.00 minimum deposit required)

• Equity Funding Entity will provide Proof of Funding Capability as required.

• Non FICO driven.  This transaction is an Equity Placement verses a traditional loan. Full Non -Recourse to principals.

• Joint Venture partner (Investor) will take an Equity Position in the project of 50%.

• A lien (or mortgage) will be placed on the entity at closing for 50% of funding value to be paid from the income of the borrowing entity until debt is retired or until such time as the buyout option is exercised.

• No Interest due during construction period or for 6 months for existing projects.

•  Future “buyout provision” of investor provided.  For a period of two (2) years after project completion date, Owner shall be allowed to repurchase 25% of the Investors right to receive profits, at a price of 29% of the total draw amount or 100% of the investor’s right to receive profits for 104%.

• Management Control retained by owner.

• Closing in 60 days from completed underwriting package submission.

 If you have a project that you would like for us to review for this program, please submit the following documents to us.

• Detailed Business Plan

• Detailed Pro-Forma

• Personal Financial Statements on each Principle

• Current Appraisal on the Property ( if available)

• Feasibility Study , Proof of funds for the required 2% and NCND and Fee agreement required