Although Fixed Rate loans are a staple of the mortgage industry, many opportunities exist for negotiation on mortgage lending terms, especially interest rates, loan-maturity and prepayment penalties. Pacific Equity Business Corporation can provide the best fixed interest rates and additional terms in the industry. Borrowers can feel secure knowing that the rate will not change throughout the entire term of the loan. Pacific Equity Business Corporation’s experienced professionals know when to recommend fixed rate loans through proprietary loan evaluation models.
A floating rate loan is typically indexed to the London Interbank Offered Rate (LIBOR), which tracks and approximates the Federal Funds rate. Many recent borrowers have chosen floating rate loans to take advantage of the historically low interest rates of the past few years. Floating rate loans often feature minimal or no prepayment penalties. They are particularly attractive to buyers with a two to four year financing horizon, such as acquisition of a property going though a reposition or a turnaround. Pacific Equity Business Corporation can help borrowers exploit these flexible structures for their immediate short-term utility or as an astute means of strengthening their long-term strategy.
Typically, Construction Loans are short-term loans utilized by borrowers to finance building costs. Every construction loan varies depending on the product, the length of the construction process, and the borrower’s experience. Pacific Equity Business Corporation can help builders find the best source, rate and term for these often critical loans.
Whether it be structured as partnership debt, or preferred equity, a mezzanine loan can be an integral component for a real estate owner or developer in many diverse circumstances. The mezzanine typically equals the difference between the first mortgage lending amount and 85-90% of the purchase price.
Designed to be paid back relatively quickly, such as by a subsequent longer-term loan, bridge loans can be a key component in a long-term strategy for real estate borrowers. Pacific Equity Business Corporation can help borrowers understand all the nuances and conditions as well as plan for the future.
Forward commitments continue to gain in popularity in the current borrowing climate for real estate. This involves a commitment by a lender to make a loan in the future, often with a predetermined interest rate. Pacific Equity Business Corporation can help obtain the optimal structure for the borrower
Similar to a construction loan, a renovation loan may involve financing for the specific purpose of upgrading an existing property in order to project the desired image of a product or service to the market. Pacific Equity Business Corporation lending professionals are able to help borrowers present their renovation program to the right lending source and to plan and consummate transactions in a timely fashion, with the best rates and terms available.