Bond Funding

Bond Funding is a fast, low cost, non-recourse way to finance many types of real estate and non-real estate projects. It can take the form of either a 144A or Reg D structure. For large or unique projects, the 144A Bond Funding program is a fast, non-recourse way to finance many types of real estate and non-real estate projects up to 100% LTV/LTC in the U.S. and internationally. This is a very unique type of financing that requires a higher level of expertise.

144A Bond & Securities Financing Program

The bond funding program offers the following benefits to investors:

  • Up to 100% LTV (or LTC for construction projects)
  • No personal guarantee
  • No asset verification (project only)
  • No loss of equity in your business (great for expansion)
  • Quick turnaround time – often 90 to 120 days. (compared with financial institutions timeline of 9 months to 1 year)
  • Flexible repayment terms

Eligible projects include:

Any stabilized commercial real estate

Construction or Rehabilitation

Mining

Oil & Gas

Energy Related

Non-RE such as technology, pharmaceutical, major business acquisition/expansion

US or International (approved countries only)


Available: US & select International countries

Loan Amounts: $1 Million to $20 Billion

Interest Rates: 5% – 8% (varies based upon underwriting risk)

Terms: Up to 100% LTV; Fixed rate up to 30-year amortization; 5-7 year term

Pre Financing Fees: Bond Fee (1-3%) and any 3rd party fees and reports

Retainer Fee: Upfront Refundable Retainer Fee of $3,500

Closing Timeline : Approximately 90-120 days (can be greater)

Points: 5-12 points are built into the note

Advantages : 

  • Lender funds up to 99% of total project costs
  • No credit check
  • No asset verification
  • No personal guarantee
  • No loss of equity in your business
  • Option to defer payments up to 12-24 months
  • Lender points are built into the bond
  • Financing can be done in one lump sum upfront depending on project needs

Required Documentation:

  1. Submission Form 
  2. Complete Executive Summary
  3. Bio or Resume of each Principal
  4. Sources & Uses of Funds
  5. Financials & 5-year Proforma
  6. Any supporting documentation that is relevant to the project

*Financing can be done in one lump sum upfront depending on project needs




ALL projects with loan amounts over 75% LTV will require a debt/equity structure. Equity requirement varies based upon evaluated underwriting risk, and comes with a 5-year buyout option for sponsor (with a predetermined formula). Equity is based upon loan amount – not value, for borrowers protection!


​This program is offered through our trusted Arranging Sources (Bond Consulting Companies) based out of New York, NY and Bowling Green, KY. These sources are A+ rated with the BBB. 



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FREQUENTLY ASKED QUESTIONS

What are "3rd party reports" costs?

Prior to closing the client is responsible, at client expense, for any and all underwriting fees, reports, appraisals and any other type of third party compilation reports needed to close the project.


How much is the Bond Fee?

Bond fee is typically between 1% - 3% cash against total project costs. In our experience, the fee is rarely more than 3%. Third party fees are the responsibility of the client.


Is the Bond Fee refundable?

The initial $3500 retainer fee is refundable (less any fees) if the bond consulting company refuses or declines the project. All other fees are accessed by third parties and may be subject to their terms and conditions.


What is the Bond program process like?

  1. After the client has agreed to working with Grand Elevation Group, the bond consulting company will issue their Memorandum of Understanding (MOU) that outlines the terms.
  2. The client gives us their verbal request for the engagement agreement based on their satisfaction with the MOU and signs the agreement.
  3. The client pays the initial Bond fee to the consulting company.
  4. The bond consultants perform their phase one work which includes due diligence and assistance with the preparation of a package to be used for marketing of the bonds.
  5. The bond company then forwards the materials to their securities attorney for review.
  6. After review a conference call is scheduled between the client, the attorney and the principal of the bond consulting company.
  7. The client will engage the securities attorney and complete forms needed to proceed to the next step.
  8. The securities attorney will then prepare the offering plan to be sent to the FINRA broker deals for marketing to sell the bonds.


* The 144A bond program is a 1990 SEC rule that facilitates the resale of privately placed securities that are without public SEC registration. The rule was designed to develop a more liquid and efficient institutional resale market for unregistered securities.


DISCLAIMER: Grand Elevation Group, LLC dba Elevation One Group is not a United States Securities Dealer or Broker or United States Investment Adviser. This website and any and all attachments and related documents are never considered to be a solicitation for any purpose in any form or content. Upon review or download of this website or these documents, you, as the Recipient, hereby acknowledge this Warning and Disclaimer. This information is covered by the Electronic Communications Privacy Act of 1986, Codified at 18 U.S.C 1367,2510-2521, 2701-2710, 3121-3126.Also see: http://www.ftc.gov/privacy/glbact/glbsub1.htm Gramm-Leach-Bliley Act 15 USC, Subchapter1, Sec. 6801-6809