Sometimes going the conventional route is just not an option. It is in those instances that other solutions are needed. Unconventional loans come packaged in many shapes and sizes and can be used to solve many different challenges.
Dividend America has assembled multiple solutions that help our clients reach their goals. From Hard Money to Bridge/Mezzanine financing and even Accounts Receivable financing, we have the solutions that businesses need to overcome almost any challenge.
These are great loans for those that have challenging situations or that need to close very fast to seize an opportunity. This loan can be used to provide funding for growth or can be used to purchase and develop commercial investment properties. These loans close fast!
Bridge or Mezzanine loans are great for those that need to ‘bridge’ a gap in financing. These loans are commonly used to complete construction, repositioning, or stabilization of a hotel, retail strip center, office building or industrial property.
Equity is the critical “first piece” in the capital stack. Many times it means the difference between getting approval from the bank or a denial. Virtually every transaction must have a minimum amount of equity from the sponsor. For those looking for the ‘filler’ to complete the capital stack equity from our allocation partners might be the answer.
There are conventional style development loans that usually contain some sort of conversion to a long term loan once construction is complete (“construction to perm” loans). Unconventional development loans are usually needed when the property type is unusual or ‘out of favor’ with banks because of market conditions. This loan is very similar to traditional hard money financing.
Accounts Receivable & Factoring Loans
AR and Factoring loans can be great for businesses that have 30, 60 or 90 day billing terms with their clients. This is very common for business that have government contracts or that are in the import/export business. However, there are many other situations where AR Financing or Factoring may be appropriate. This is a great way to get cash flow now for growth!
Asset Based Loans
Asset based loans are a great alternative for those that need cash but don’t want to liquidate investments. Asset based loans use stocks, bonds, mutual funds, art or other valuable non-real estate type assets as collateral for the loan. It’s a great alternative to traditional types of collateral based financing.
Self Directed IRA Loans
These loans are a great tool for individuals that want to use their IRA to invest in business or real estate. They leverage the IRA in such a way that it gives the IRA more investing strength.