100% Commercial Financing Is Really Available
Large commercial project funding is never simple to acquire.
100% commercial funding is even more scarce. But it is available
if you know where to look.
One of the problems in the business in recent years has been the
Patriot Act. This act has made it nearly impossible for
international developers to obtain USA financing, let alone 100%
financing. The hoops one must jump through can be downright
insulting to foreign companies wishing to find financing here in
the US. But take heart, you can still get USA lenders to finance
your project.
Let's say you are a developer who wants to build a $20 million
USD resort on the island of St. Lucia, but your company has
little cash and no equity. Yet you have experience, good credit,
great reports backing your project, and a good exit strategy.
You probably think there is no way you could carry off this
project. Think again.
There are USA lenders that lend 100% of the project cost,
generally only for projects of $10 million USD or more. These
lenders are creative, work quickly, and base their opinions on
the character and experience and planning of the developer,
rather than how fat his wallet is. They may not fund every
project, but, certainly it is worth sending them your paperwork.
Usually all that is necessary to get started is a well thought
out executive summary. Most lenders will tell you exactly what
to put in the summary. Don't leave any of this desired
information out. If you are serious about borrowing $10 million
or $400 million, you will take the time to do the summary
EXACTLY as the lender wants it. They get far too many inquiries
to deal with a developer who leaves out information. If you
leave something out, your summary could easily get trashed. They
don't need your project. You need them.
What kind of projects will these lenders fund? In general, if
the project is backed by real estate, or attached to the ground,
then they will consider it. They will not fund business loans,
movies, theme parks or fishing boats. They will consider housing
developments, municipal projects, hospitals, hotels and motels,
resorts, apartment complexes, office buildings, etc.
So don't give up hope of getting your project funded 100%. You
can do it if you know where to look, and can give the lender a
summary that answers all the questions they pose, you have a
good shot at getting your project 100% funded.