The 1X Loan
When you have the capital to do your own project, but what you really need is to mitigate the risk: the 1X Loan is your answer.
This 1X Loan program offers borrowers a matching loan (minimum $1M USD/EUR and secures the initial capital using a federally regulated and registered security (coupon bond) that guarantees both the principal and interest. The loan amount is equal to the bonded amount, the lending group assumes all of the risk and the bondholder receives 5% per annum, paid monthly. The matching loan is deployed in monthly draws, fully disbursed in 8 - 10 months. For deposits less than $10M the deposit is held until the loan is repaid or otherwise settled.
If the deposit is $10M or higher is it possible to recover the Depositor's initial capital in as little as 60 days. As a FIRST STEP we arrange for the Depositor to speak directly with the Bond Group to review the entire bonding process. See Financial Safekeeping methods for more information on positioning a $10M+ deposit. .
This 1X Loan program offers borrowers a matching loan (minimum $1M USD/EUR and secures the initial capital using a federally regulated and registered security (coupon bond) that guarantees both the principal and interest. The loan amount is equal to the bonded amount, the lending group assumes all of the risk and the bondholder receives 5% per annum, paid monthly. The matching loan is deployed in monthly draws, fully disbursed in 8 - 10 months. For deposits less than $10M the deposit is held until the loan is repaid or otherwise settled.
If the deposit is $10M or higher is it possible to recover the Depositor's initial capital in as little as 60 days. As a FIRST STEP we arrange for the Depositor to speak directly with the Bond Group to review the entire bonding process. See Financial Safekeeping methods for more information on positioning a $10M+ deposit. .
Comparing a Multiples Loan to a $10M 1X Loan
If a Real Estate Developer has 10 projects they wish to build, each with a project budget of $10M, they have a total capital requirement of $100M. If they were using our regular multiples based program they would need to raise $33.33M to get a 3X multiple, and receive their required $100M in loan funds. Their $33.33M would be required to remain in place until the loan is fully settled (which can be anywhere from 12 to 60 months).
But using the 1X Loan, they would only need to raise $10M (enough to do the first project) and because they are able to recover their capital after 60 days, now they can "cycle" that original $10M over and over and be able to finance all 10 projects using their first $10M. The developer would apply for a 1X Loan and post their $10M to the bond and after 60 days the lending group would "buy out" the investor's bank account (where the initial funds are housed) - and wire the initial funder $10M and the Depositor would sign over the original account. The lending group is now responsible for keeping those initial funds in place until the loan is settled. As a result, in addition to assuming all risk for the project, it is now the lending group (and not the Depositor) that has their $10M tied up for up to 60 months. The initial funder has their $10M back and the project is fully funded through our 1X Loan.
THEN only 60 days after they posted the first $10M, the Depositor can take the same $10M we sent them..... and do it over again to finance ANOTHER $10M project. Then 60 days after that, do it again. Then 60 days later do it again, until all 10 of the projects have been fully financed through our 1X Loans. And the Developer, as well as having their required $100M in loans to fund their 10 projects, still has the initial $10M they started with, only 60 days after posting it to complete their last $10M project.
Obviously this is a very enticing offer. Rather than getting 3X or 4X using the multiples program, using the 1X Program in this way enables a company to access 5X or 10X or 20X in loans (cycling the same initial funds over and over again until all of their projects are fully funded). All they need to be able to do is produce the projects successively (instead of all at once), with start dates every 60 days or so.
With this approach investors will be much easier to find once they know that their funds are never at risk and are fully recovered and back in their control in only 60 days. On top of that, if the Developer was to offer them equity on the amount they bring to the program as a sweetener, it will make the entire opportunity irresistible.
But using the 1X Loan, they would only need to raise $10M (enough to do the first project) and because they are able to recover their capital after 60 days, now they can "cycle" that original $10M over and over and be able to finance all 10 projects using their first $10M. The developer would apply for a 1X Loan and post their $10M to the bond and after 60 days the lending group would "buy out" the investor's bank account (where the initial funds are housed) - and wire the initial funder $10M and the Depositor would sign over the original account. The lending group is now responsible for keeping those initial funds in place until the loan is settled. As a result, in addition to assuming all risk for the project, it is now the lending group (and not the Depositor) that has their $10M tied up for up to 60 months. The initial funder has their $10M back and the project is fully funded through our 1X Loan.
THEN only 60 days after they posted the first $10M, the Depositor can take the same $10M we sent them..... and do it over again to finance ANOTHER $10M project. Then 60 days after that, do it again. Then 60 days later do it again, until all 10 of the projects have been fully financed through our 1X Loans. And the Developer, as well as having their required $100M in loans to fund their 10 projects, still has the initial $10M they started with, only 60 days after posting it to complete their last $10M project.
Obviously this is a very enticing offer. Rather than getting 3X or 4X using the multiples program, using the 1X Program in this way enables a company to access 5X or 10X or 20X in loans (cycling the same initial funds over and over again until all of their projects are fully funded). All they need to be able to do is produce the projects successively (instead of all at once), with start dates every 60 days or so.
With this approach investors will be much easier to find once they know that their funds are never at risk and are fully recovered and back in their control in only 60 days. On top of that, if the Developer was to offer them equity on the amount they bring to the program as a sweetener, it will make the entire opportunity irresistible.
This is an exciting opportunity for Project Owners. Now you can tell potential investors that they can EXIT in 60 days with the project fully financed knowing their funds are never exposed to ANY risk.
New Intake Model
As you can see as outlined in the Financial Safekeeping section above, the success of this program weighs heavily on the Initial Funds Deposit. We have encountered many project owners attempts to leverage an investor's capital to position their Initial Funds Deposit and it has become clear that the FIRST STEP in our process needs to focus on the education and comfort of the person making the deposit on behalf of the project seeking funding.
It is only when that person fully understands the safekeeping options available to them that we can proceed. To accomplish this our INTAKE PROCESS has changed for 2023.
Now to engage with our lending platform the Bond Group will need direct contact with the Depositor - the person whose capital will be pledged to the bond for safekeeping. In order for the Bond Group to engage the Depositor directly, they need to be presented as a Sophisticated (Accredited) Investor, a regulatory requirement with an investment of this nature. As a result we require the Depositor's CIS (Client Information Sheet), a valid and current POF, a scanned copy of their passport, along with a 2 page project summary and a signed NDA.
With that Intake Package we will present the Depositor to the Bond Group and they will contact the Depositor directly to review the bonding process, showing them how their funds are secure and fully guaranteed, and tp also review the best loan option for the project.
Only once the Depositor has confirmed their comfort and willingness to move forward will the lending group agree to accept a formal loan application for the project. At that point, we will provide you with our Finder’s and Financial Agreement for signature and with the agreement executed, work with you to complete and submit your full application package.
It is only when that person fully understands the safekeeping options available to them that we can proceed. To accomplish this our INTAKE PROCESS has changed for 2023.
Now to engage with our lending platform the Bond Group will need direct contact with the Depositor - the person whose capital will be pledged to the bond for safekeeping. In order for the Bond Group to engage the Depositor directly, they need to be presented as a Sophisticated (Accredited) Investor, a regulatory requirement with an investment of this nature. As a result we require the Depositor's CIS (Client Information Sheet), a valid and current POF, a scanned copy of their passport, along with a 2 page project summary and a signed NDA.
With that Intake Package we will present the Depositor to the Bond Group and they will contact the Depositor directly to review the bonding process, showing them how their funds are secure and fully guaranteed, and tp also review the best loan option for the project.
Only once the Depositor has confirmed their comfort and willingness to move forward will the lending group agree to accept a formal loan application for the project. At that point, we will provide you with our Finder’s and Financial Agreement for signature and with the agreement executed, work with you to complete and submit your full application package.
If you have any questions about our Financial Safekeeping