A refinance loan is a credit facility extended to a property owner, to help recapture property appreciation, and provide liquidity to the owners.
This facility will enable the purchaser to leverage his/her equity and maximize the return on investment, by keeping the out-of-pocket proceeds to a minimum.
Paradigm provides construction loans for almost all property types; whether floating over LIBOR or PRIME leverage can be as high as 92% of all construction costs; both hard and soft, and financing costs. On select occasion, in the case of construction for a rental property, some lenders will lock the rate for the entire term of the loan; the construction periods included, and then convert the loan into a permanent loan upon stabilization of the asset.
These loans, secured by the partnership interest, have proven themselves to be invaluable, in that they provide debt not otherwise available conventionally, and minimize the clients’ exposure of capital into any one deal, as well as providing liquidity in the case of prohibitive refinance costs.
The most basic of the commercial real estate capital structure, Paradigm Commercial Real Estate LLC arranges long term financing with terms ranging from five years and going out as long as 40 years if the asset calls for it. Amortization schedules vary form 15 to 40 years, and on many occasions can be on an interest only basis as well. This type of loan is available for almost every property type nationwide.
Floating Rate Loans
For deals that require repositioning, and especially in a low index environment, floating-rate debt has proven itself to be an invaluable tool in the maximization of a property’s potential. A variety of indices can be used; prime, LIBOR, or the annual trailing of the one-month treasury issue; available for multifamily only. Typically, these loans have been on an interest-only basis.