Project Financing

The market is changing fast. The dollar is loosing its value daily to other world currencies, and oil and gold, said to be undervalued greatly, is on the rise to record highs. These conditions in the marketplace and world economy, along with a contraction of available credit coupled with median household income remaining stagnant, create a looming recession for Americans.

Getting access to capital for real estate becomes difficult. and for this purpose developers and real estate investors have to be willing to adapt and comply. BalboaTrade.com has a unique funding source with one of the largest trusts and private banks in the nation. We are looking to fund most types of real estate and projects, but we give priority to energy based, natural resouces and commodity based, and alternative energy projects.

Asset Pledging for Project Capitalization

Take your high valued assets that are doing nothing and pledge them to insurance, re-insurance companies looking to increase their book value with your assets. Pledge terms are usually for one to five years giving the owner of the asset 10-20% of appraised value in cash annually. This is not a loan, it does not require repayment. After the term expiration the asset is returned. Assets of a minimum of $50M current appraised value only are considered. Assets considered are real estate, natural resources (in-ground and above-ground), precious gems and stones, art, gold and precious metals, or any commodity with verifiable value free of encumbrances with proven ownership.

Large Balance Commercial

100% debt and/or equity financing for all commercial real estate and projects. Transactions range from $1.5M to greater than $1B+. Terms vary, but a minimum of 25% equity participation is required with debt interest rates starting at 6.00% APR.

Commercial/Residential Bulk Sales

If you have found that your project is in trouble, a situation that is quickly turning bad to worse, you are not alone. There are many in your predicament. Balboa Mortgage has alliances with investors that are looking to acquire in bulk commercial under performing real estate due to a poor market, cash flow, and other extenuating circumstances.

Additionally investors are looking to acquire at discount residentially zoned/planned improved land (not raw unimproved). Improved land is physically improved land in addition to completed zoning entitlement. Transactions range anywhere from $100,000 up to $20M or more.

Reality Check

"Skin into the game" always takes a major role in underwriting, along with net worth assets, liquid cash available, and cash (not debt) projected to be invested into the project. As a general rule of thumb underwriters for most capital sources seek the guarantor/principle to have 20% cash investment into any large project and want to see strong net worth and sustainable incomes to see through the project's completion. However, with our unique private trust/bank financing showing 20% liquidity is all that is needed. The 20% of funding amount is not required to be paid into the project, but must be shown giving the borrower staying power and liquidity.

Points/Fees

Points per project vary due to size, difficulty, and placement, but the borrower/principle should be willing to pay a minimum of a point to BalboaTrade as intermediary. Our private trust/bank charges no up front fees.

Initial Documents Required

Most underwriters want to see the same things, but each want to see it perhaps in a different order. Not all want to see "everything you got" up front.

Small Balance Loans

• Summary of Proposal (aka Executive Summary of Business Plan)
• 1003 Application
• Credit Report
• Pictures of property
• Appraisal (if in possession of one)
• Financials (personal and business) (when full documentation)
• Tax Returns last year and previous (personal and business) (when full documentation)
• Financial Statements as identified on 1003
• Property Income Statements
• Rent Roll (if applicable)

Commercial and Residential A&D and Construction and Refinances

• Summary of Proposal (aka Executive Summary of Business Plan)
• Exit Strategy
• Pre Sales (where applicable)
• Pro Forma
• Use of Funds
• Break Down of Funds into Project to-date
• 1003 Application
• Credit Report(s)
• Pictures of property
• Appraisal (if in possession of one)
• Financials (personal and business)
• Tax Returns-most recent (personal and business)
• Financial Statements as identified on 1003