About Our 1X Matching Loan Program
When you have the capital to do your project, but what you really need is mitigate your risk, then the 1X Loan is your answer.
This matching loan offers borrowers a loan amount is equal to the Initial Funds Deposit amount they position with our program. The loan is paid out in monthly disbursements across 7 to 10 months and is fully disbursed within a year. Your funds are secure held by your own lawyer or a new SPV bank account. For 1X Matching Loans of $5M but 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 your capital within 12 months. The minimum deposit to qualify is $5M.
This matching loan offers borrowers a loan amount is equal to the Initial Funds Deposit amount they position with our program. The loan is paid out in monthly disbursements across 7 to 10 months and is fully disbursed within a year. Your funds are secure held by your own lawyer or a new SPV bank account. For 1X Matching Loans of $5M but 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 your capital within 12 months. The minimum deposit to qualify is $5M.
Loan Highlights
- Minimum Deposit $5M, or $10M if you want to recover capital in 12 months.
- 48 Month term with 12 month extensions possible
- Interest Only at SOFR
- Ability to capitalize all interest and fees
- NO personal/corporate guarantees
- Loan is secured by a lien against the project
- Flexible repayment options and lender will convert to permanent financing at below market rates
- No prepayment penalties, minimum loan term is 12 months
- No Upfront Fees
- Minimum Closing costs ($25,000) paid prior to final contracts
- Origination Fee 3% of loan
- Success Fees will never exceed 3%
*Note: In addition to using cash, an SBLC, BG, Crypto or Gold SKR can also be used to position an Initial Funds Deposit.
- 48 Month term with 12 month extensions possible
- Interest Only at SOFR
- Ability to capitalize all interest and fees
- NO personal/corporate guarantees
- Loan is secured by a lien against the project
- Flexible repayment options and lender will convert to permanent financing at below market rates
- No prepayment penalties, minimum loan term is 12 months
- No Upfront Fees
- Minimum Closing costs ($25,000) paid prior to final contracts
- Origination Fee 3% of loan
- Success Fees will never exceed 3%
*Note: In addition to using cash, an SBLC, BG, Crypto or Gold SKR can also be used to position an Initial Funds Deposit.
Comparing a Multiples Loan to a $10M 1X Loan
If a Real Estate Developer has 10 projects they wish to build and each has 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 roughly $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 up to 60 months) and interest is charged at SOFR+2.5%.
But using the 1X Loan, they could finance each project in turn and only need to raise $10M (enough to do the first project). Because they are able to recover their capital within 12 months, now they can "cycle" that original $10M over and over and be able to finance all 10 projects using their first $10M. And the interest on the matching loan is a lower cost of capital at SOFR+1.25%.
The developer applies for a 1X Loan, positions their deposit and within 12 months the lending group "buys out" the investor's bank account (where the initial funds are housed) - and wires the deposit amount back to the deposit provider. 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. The initial funder has their $10M back and the project is fully funded through the 1X Matching Loan.
The specific timing on returning the Initial Funds Deposit is tied to the project's risk assessment and drawdown schedule. But within 12 months of posting the first $10M, the Depositor can take the $10M deposit that was returned to them..... and do it over again to finance another $10M project. And in fact recycle that deposit again and again, until all 10 of the projects have been fully financed. 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 after posting it the last time to complete their final $10M project.
Rather than getting 3X or 4X using the multiples program, using the 1X Matching Loan strategically this 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 - assuming of course that all projects have a similar budget). If they can produce the projects one at a time (instead of all at once) and the start dates for each project are several months apart then this is an unparalleled solution. With this approach investors should be much easier to find once they know that their funds are never at risk and are fully recovered within 12 months. 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 could finance each project in turn and only need to raise $10M (enough to do the first project). Because they are able to recover their capital within 12 months, now they can "cycle" that original $10M over and over and be able to finance all 10 projects using their first $10M. And the interest on the matching loan is a lower cost of capital at SOFR+1.25%.
The developer applies for a 1X Loan, positions their deposit and within 12 months the lending group "buys out" the investor's bank account (where the initial funds are housed) - and wires the deposit amount back to the deposit provider. 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. The initial funder has their $10M back and the project is fully funded through the 1X Matching Loan.
The specific timing on returning the Initial Funds Deposit is tied to the project's risk assessment and drawdown schedule. But within 12 months of posting the first $10M, the Depositor can take the $10M deposit that was returned to them..... and do it over again to finance another $10M project. And in fact recycle that deposit again and again, until all 10 of the projects have been fully financed. 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 after posting it the last time to complete their final $10M project.
Rather than getting 3X or 4X using the multiples program, using the 1X Matching Loan strategically this 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 - assuming of course that all projects have a similar budget). If they can produce the projects one at a time (instead of all at once) and the start dates for each project are several months apart then this is an unparalleled solution. With this approach investors should be much easier to find once they know that their funds are never at risk and are fully recovered within 12 months. 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 within 12 months with the project fully financed knowing their funds are never exposed to ANY risk.
Make Contact. Learn More. Get Funded.
How to Engage
We need a complete Intake Package from you if you want to engage with our programs. The focus of our intake process is to verify the Initial Funds Deposit Proof Of Funds (POF), as well as the Borrower (CIS - customer information sheet including scan of passport) and then to review the project itself with a 2 page Project Summary, your desired draw schedule and a signed NDA.
With that Intake Package we will verify the POF and CIS and review the project overview and pre-approve the loan if we want to proceed. At that point, with the pre-approval if you want to formally apply for the loan 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.
With that Intake Package we will verify the POF and CIS and review the project overview and pre-approve the loan if we want to proceed. At that point, with the pre-approval if you want to formally apply for the loan 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.
Get in touch if this structure aligns with your project's funding needs.