About this Financing Program
PLEASE NOTE: SANDBERG ENTERPRISES LLC IS NOW REQUIRING EACH APPLICANT TO SEND US THEIR POF (PROOF OF FUNDS) DOCUMENTATION TO COVER THE NECESSARY APPLICATION AND PROCESSING FEES AND COSTS – ALL OF WHICH WILL BE RECAPTURED AND RETURNED UPON FUNDING, IN ADDITION TO THE COMPLETION OF THE 9 POINT SUMMARY FORM ON THIS WEBSITE.
***APPLICANTS THAT DO NOT PROVIDE THIS INFORMATION IN FULL WILL NOT HAVE THEIR REQUEST REVIEWED OR PROCESSED.***
- This program is available for non-USA registered entities/borrowers only. Because of FATCA rules, it can be used for projects in any country, including Canada and Mexico, except the USA, its territories and/or protectorates, for which we have other applicable alternatives.
- This program will provide 100% of your project financing needs including most if not all of the costs of processing your loan through to funding, hence 100% Financing.
- $5.0 million minimum, no maximum, with Interest rates as low or lower than 4.75% p.a., payable interest only, with up to a 3 year grace period for construction and stabilization. The term is 10 years with pay out or refinance at that time. There is no pre-payment penalty.
Our lender does NOT charge a Success Fee for their services but will INVEST a 40% equity interest in the project instead. In other words, the borrower will actually be a JV (Joint Venture) with the client/borrower owning 60% and the lender owning 40%. The client, therefore will only be responsible for its 60% share of the interest – and the principal – on the 60% loan. At the end of the loan term, the client has the first right of refusal to acquire the lender’s 40% equity interest at its then current market value – or not – and if not, the lender will then be free to sell it on the market, or keep it at its discretion.
Note – This is a non-recourse loan, see below.
How to Qualify
To qualify for this loan the lender requires that the borrower have at least 5% of the total investment/loan amount available in cash, provable via a POF (Proof of Funds) to show liquidity and to cover the out-of-pocket costs of processing the loan thru to funding, said costs to include our/Sandberg’s Processing Fee, the Set Up and Underwriting Fee, the Lender’s Commitment Fee, and the Closing Costs that will include the Legal Fees and the Cost of the Financial Guaranty Bond to insure all parties against a possible default because this is a non-recourse loan.
Note: Some of this 5% may be offset by the borrower already owning the land and having already paid for such things as architectural/engineering, feasibility/viability studies, surveys, permits, legal and accounting, etc., etc., etc., as long as there is enough cash left available to cover the out-of-pocket processing costs.
Out of Pocket Processing Costs
Sandberg’s Processing Fee of $14,500 US dollars (our minimum) for loans up to $29.5 US$, thereafter 0.05% (not added to) of the loan amount up to $100 Million US$. Thereafter; plus 0.025% of the amount over US$ 100 Million. The Lender’s Commitment Fee of $50,000 and then the Closing Costs, in which we cannot approximate now until the due-diligence risk factors have been determined during the approval process.
Note: These funds are not an extra and WILL BE recaptured and returned to borrower upon funding, hence, 100% Financing.
And finally, once again, please remember that all our processing costs will be included in and financed along with the project loan proceeds at funding, hence 100% financing. Accordingly, if this program is of interest to you/your clients, please fill out and submit our 9 Pt Summary that we use to initiate each request, attach the Proof of Funds to the request with their LOF and we will take it from there.