Graco Mortgage

970-663-7306
144A Bond Funding Program


Bond Funding is a fast, non-recourse way to finance many types of real estate and non-real estate projects up to 100% LTV in the U.S. and Internationally.

 
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Benefits of a 144A Bond Offering:

  • 100% LTV (or LTC for construction projects)
  • NO Personal Guarantees
  • NO Credit Checks
  • NO Asset Verifications
  • Quick turn around time - 90 - 120 days
  • Flexible repayment terms

Eligible Projects:

  • Any stabilized commercial real estate project
  • Acquisition / Construction / Development or Rehabilitation
  • Construction or Rehab
  • Agriculture
  • Mines
  • Oil & Gas
  • Energy Projects
  • Non-Real Estate, such as technology, pharmaceutical, major business acquistion/expansion

  • Note: This is NOT good for agricultural, land, churches, special-use, venture capital or similar uses.

Territory:            US and International

Amount:             $10,000,000 to $2B+ (may include hard/soft costs)

Underwriting Fee:      Case by Case Basis

                                   Some recent examples:

                                   $500,000,000 bond deal and the fee was $240,000

                                   $250,000,000 bond deal and the fee was $150,000

                                   $20,000,000 bond deal and the fee was $45,000

                                   $17,000,000 bond deal and the fee was $45,000


Terms:                     Interest only or up to 30 year amortization, with balloon payment (5 or 7 years).

Interest Rate:        4.75% - 7.00% dependent upon underwriting risk.


Points:                     Bond company charges 5 - 7 points, and Lender 5 - 7 points - Paid at the time of bond issuance. This                                                 includes required securitization fees and bond insurance. Points and costs are financed and built into the                                         loan amount.


Third Party Reports:    Client is responsible, at the clients expense, for ANY reports, appraisals and any other type of third                                           party compilation abut the project including expense retainer which is refunded to client at time of funding.


Additional Features:

  • Prepayment allowed without penalty
  • Loan can be assumed upon qualified sale
  • No DSCR required minimum
  • Construction loans available up to 24 months

                  

Process

  • Send  preliminary package, Bond Questionnaire and Proof of Funds for fee amount

                    * Three months bank statements required to verify funds for underwriting & due diligence - at time of submission

  • Updated resume on principal(s) required at submission
  • Multiple conference calls
  • Bond company analysis and pre-underwrite transaction


If bond company issues a positive opinion (in 2-3 weeks);

  • Bond company engaged and bond underwriting fee paid
  • Due diligence performed
  • Bond created
  • Funding


* The 144A bond program is a 1990 SEC rule that facilitates the resale of privately placed securities that are without SEC registration. The rule was designed to develop a more liquid and efficient institutional resale market for unregistered securities.



DISCLAIMER: Sender is not a United States Securities Dealer or Broker or United States Investment Adviser. This letter and any and all attachments and related documents are never considered to be a solicitation for any purpose in any form or content. Upon receipt of these documents you, as the Recipient, hereby acknowledge this Warning and Disclaimer. This electron communication is covered by the Electronic Communications Privacy Act of 1986, Codified at 18 U.S.C 1367,2510-2521, 2701-2710, 3121-3126. Also see: http://www.ftc.gov/privacy/glbact/glbsub1.htm Gramm-Leach-Bliley Act 15 USC, Subchapter 1, Sec. 6801-6809 *INFORMATION ONLY FOR THE LOAN COMPONENT*