Loan Types and Capital Structures:
E Source Lending enhances your understanding of funding and supports you in your goals. Our mission is to offer transparent and effective financing while ensuring thoroughness. With years of experience, we provide essential financing solutions for your funding requirements. Real estate capital or equity can be structured as either debt or as a cash investment.
​Purchase: Are you in search of a residential investment property or a commercial purchase? At E Source Lending, we can help you take advantage low rates. Our process is quick and thorough, ensuring you can acquire that property you see as a valuable investment.
Refinance: With our very low rates, simply submit an application, and if approved, we can provide a term sheet to determine if refinancing your property or investment properties makes sense.
Cash-Out: We offer cash-out options 30 days after purchase with no seasoning or tax returns required. This is a fantastic way to acquire additional investment properties, renovate your current ones, or support the growth of your business.
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One mortgage for multiple properties: We offer the ability to combine two properties into a single mortgage. The properties serve as collateral for the mortgage, allowing for individual sales without needing to retire the entire loan. This approach simplifies financing for multiple properties, enabling you to fund several real estate investments with one
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Capital Structures:
Equity: This involves equity investment in the ownership entity as a partner, member, or stockholder. Investments are made with qualified developers and operators in transactions that present significant opportunities for value creation or cash flow improvement. The equity and preferred returns will be distributed on a pari passu basis.
Preferred Equity: Preferred equity is ideal for scenarios where the developer needs additional equity capital to bridge the gap between debt and the purchase or development costs. Typically, a preferred equity investment is structured to ensure investor receives their investment back along with a preferred return and share of profits to meet their target IRR.
Mezzanine Debt: Mezzanine debt offers developers subordinate debt funding that can cover a percentage of the property's value. This option appeals to developers wishing to retain a larger portion of profits. The first mortgage is usually a straightforward debt, while the mezzanine mortgage poses higher risk and offers higher yields, often featuring either a higher coupon or exit fees. The same lender may serve both debt instruments, or the instruments could be from different lenders, making this structure particularly beneficial for developers aiming for full ownership.
Participating Debt: Participating debt allows leveraging the property up to a percentage of both the cost and the stabilized value, typically structured as a blended first and second mortgage. This type shares many characteristics with mezzanine debt but generally involves only one lender.
Development Agreement: In this arrangement, the investor takes an ownership position and contracts the developer, through a development agreement, to construct and manage the asset The developer receives a percentage of the profits, making this option particularly suitable for those with no cash equity, such as emerging developers with experience but just starting their own ventures, as well as those looking to minimize risk.
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**Also, Additionally, there are various other programs and trades available to qualified principals that must pass due diligence.
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