REAL ESTATE LOANS

Real estate loans are loans that are secured by a mortgage on real property. The acquisition of real estate can be expensive, often greatly exceeding the capital reserves of potential buyers. In order to satisfy the needs of potential buyers, lenders such as Endeavor Capital PR offer real estate loans whose proceeds can be used to purchase new real estate, improve existing properties, or refinance existing debt.

Acquisition loans

Acquisition loans are loans used to purchase a particular asset such as a business entity or real estate. Lenders typically require an understanding of the asset to be purchased, including its historical performance and profitability, as well as a thorough knowledge of the applicant’s prior credit history before providing an acquisition loan. This can be a time consuming process. Endeavor Capital PR, a private lender, is able to rely upon the financial strengths and qualities of the underlying asset without placing a reliance upon the credit history of the applicant. This allows for creative, situational financing that can be closed and funded within a short time frame.

Bridge loans

Real estate bridge loans are short-term business loans secured by real estate. Real estate bridge loans are often used for properties that require a capital injection but are in transition such that longer term financing is not yet available. Endeavor Capital PR understands that time is of the essence when it comes to real estate bridge loans so approval decisions are often made within one week of application with a potential closing taking place within 14 business days of initial contact.

Mezzanine loans

Mezzanine loans provide an opportunity for businesses to gain access to the capital that they need without having to commit precious collateral. As subordinated debt or preferred equity, mezzanine loans are often used to fund growth, expansion or acquisitions.  Direct lenders such as Endeavor Capital PR are able to provide access to mezzanine loan funds in a quick and timely fashion, allowing applicants fast access to the funds they need in order to grow and manage their businesses.

A bridge loan is a specific type of asset-based loan financing in which a borrower receives funds secured by the value of real estate. Bridge loans are typically issued at much higher interest rates than conventional commercial loans and are almost never issued by a commercial bank. A bridge loan often refers to a commercial property or investment property that may be in transition and does not yet qualify for traditional financing. Endeavor Capital PR has structured and provided numerous hard money loans for many developers who simply require situational financing within a very restricted time frame.

MEZZANINE CAPITAL

Mezzanine capital refers to a subordinated debt or preferred equity instrument that represents a claim on a company’s assets, which is senior only to that of the common shares. Mezzanine financings can be structured either as debt (typically an unsecured and subordinated note) or preferred stock. Mezzanine capital often is a more expensive financing source for a company than secured debt or senior debt. The higher cost of capital associated with mezzanine financings is the result of its location as an unsecured, subordinated (or junior) obligation in a company’s capital structure (i.e., in the event of a default, the mezzanine financing is less likely to be repaid in full after all senior obligations have been satisfied). Additionally, mezzanine financings provided by Endeavor Capital PR are often used by smaller companies and usually involve greater overall leverage levels than issuers in the high yield market and as such involve additional risk. In compensating for the increased risk, mezzanine debt holders will require a higher return for their investment than secured or other more senior lenders.

JOINT VENTURE EQUITY PARTICIPATION

A joint venture (often abbreviated JV), is where two parties agree to create a new entity by both contributing equity, and then they share in the revenues, expenses, and control of the enterprise. There are many reasons for forming a real estate joint venture with Endeavor Capital PR:

1. Build on a company's strengths

2. Spreading costs and risks

3. Improving access to financial resources

4. Economies of scale and advantages of size

5. Continue to access new opportunities

6. Pre-empting competition

7. Diversification

8. Speed to market

WORKING CAPITAL

Working capital is a financial metric which represents operating liquidity available to a business. Decisions relating to working capital and short term financing are referred to as working capital management. These involve managing the relationship between a firm's short-term assets and its short-term liabilities. The goal of working capital management is to ensure that the firm is able to continue its operations and that it has sufficient cash flow to satisfy both maturing short-term debt and upcoming operational expenses. Endeavor Capital PR can finance a working capital deficit if the collateral offered is in the form of plant (real estate), equipment, inventory or receivables.

DIP LOAN

Debtor-in-possession financing or DIP financing is a special form of financing that Endeavor Capital PR can provide for companies in financial distress or under Chapter 11 bankruptcy process. Usually, this security is more senior than debt, equity, and any other securities issued by a company. It gives a troubled company a new start, albeit under strict conditions. In most cases, the DIP loan is repaid in full as part of the debtor's emergence from Chapter 11 and is considered attractive because it is done only under order of the Bankruptcy Court, which is empowered by the Bankruptcy Code. Debtor-in-Possession financing can also provide corporate bankruptcy financing to engage in a prepackaged business bankruptcy where the asset-based lender providing DIP financing supplies the funds to work out a settlement with creditors up front, in order to walk into corporate bankruptcy court with this prepackaged settlement.

HYPOTHECATION LOANS

These are short-term loans that are entirely collateralized by real estate mortgages and corporate and personal guarantees by extremely credit worthy borrowers who have been in business for many years.  When a person or company pledges a mortgage as collateral for a loan, it refers to the right that a lender has to liquidate goods if you fail to service a loan.

REVOLVING CREDIT FACILITY

Revolving credit is a type of credit that does not have a fixed number of payments. The borrower may use or withdraw funds up to a pre-approved credit limit. The amount of available credit decreases and increases as funds are borrowed and then repaid; the credit may also be used repeatedly. The borrower makes payments based only on the amount they've actually used or withdrawn, plus interest. In some cases, the borrower is required to pay a fee to the lender for any money that is undrawn on the revolver.