Real Estate Project Funding
Advanced Financial Agency provides project finance (PF) models for real estate, encompassing substantial bank loans for construction across the USA, Europe, the Middle East, and various other global regions.
Building Construction
A finance team with extensive expertise in funding development projects globally.
Project financing is a loan arrangement that primarily depends on the cash flow generated by the project for repayment, while the project’s assets, rights, and interests serve as secondary collateral. This type of financing is particularly appealing to the private sector, as it allows companies to undertake significant projects without impacting their balance sheets.
Real estate project financing serves as a prime illustration of this concept. The cash flows generated from real estate projects must adequately cover operational costs and meet the obligations for loan repayments. Generally, the financing structure consists of a combination of debt and equity that aligns with the asset’s duration.
All costs related to finance and structuring will be incorporated into the project financing budget and subtracted from the funds provided.
Advanced Financial Agency provides financing solutions requiring minimal input from Project Initiators across various sectors, including real estate, energy, mining, agriculture, machinery, infrastructure, logistics, and more.
• Investment amounts start at €40 million and above.
• Loans can cover up to 90% of the total project cost.
• Loan terms range from 10 to 15 years.
• Extensive consulting services are available.
It is important to understand that if the client lacks liquid assets, the application cannot be processed.
Our team consists of highly skilled professionals and asset managers who analyze each individual case to offer a financial solution that enables the promoter to secure long-term project financing with the least possible contribution.
In this approach, equity is substituted with guaranteed financing.
About this Process
Advanced Financial Agency has the experience, relationships, and expertise to get you the most advantageous real estate investment finance solution.
Call For a Quote:
(346) 234-6973
Related Services
Oil Refinery Financing
To secure funding for the advancement of oil and gas production, transportation, and refining, it is crucial for applicants to grasp the fundamentals of the capital
Wind Farm Financing
The Advanced Financial Agency focuses on facilitating investments and delivering financial strategies for the establishment of extensive
Long-term Loans
AFA is a global firm that offers a comprehensive array of financial and consulting services to both private and public sectors across numerous countries.
F.A.Q.
What is Real Estate Financing?
At its essence, the term “real estate finance” or “real estate financing” describes the methods and potential sources from which someone who wishes to purchase property secures the funds to do so. Though the term technically would also apply to residential purchases, in practice it is more commonly used to describe financing for real estate deals that involve investment properties.
Lending against the cash flow generated by a property is the most traditional form of real estate finance. In its simplest form, it involves a loan to a borrower which is repaid from the rental income of the borrower’s property. It is the most commonly used structure for investing in real estate.
What are your loan size limits?
Presently, $5,000,000 to $7000,000,000
Do you require personal guarantees from principals?
Yes, on most deals. We will consider non-recourse loans with standard ‘bad boy’ carve-outs on a case-by-case basis provided the corporate entity guaranteeing the loan has sufficient liquidity and net worth.
Will you lend on a 2nd lien position?
We are always in the senior position secured by a 1st lien.
Do you offer new construction financing?
Yes, we will finance ground-up construction with experienced contractors and builders.
Do you offer preferred pricing for return borrowers?
As with any successful lending relationship, repeat customers will get the best terms available.
Will you lend 100% of costs?
No, we lend up to 85% of the purchase price plus settlement costs and up to 100% of rehab costs, provided the after-repair value (ARV) is 75% or less.
Do you exclude any property types?
We will not finance owner-occupied homes, co-ops, log homes, mobile homes, manufactured houses, and raw land.
What physical condition must the property be in?
We have no minimum condition requirements; the messier, the better. A quality rehab is where you unlock value in your property!
Do I need good credit to get a loan?
You do not need a great credit score to borrow from us; however, we do review the credit profile of all loan sponsors/principals and will not lend to you if you are currently delinquent on any loans or have filed bankruptcy in the last three years.
Do I need experience to close?
Experience is beneficial, and it will enhance your loan terms, but we understand that everyone has to start somewhere. We lend to first-time investors.
How do I start the process?
There are several ways to get started. The easiest and most efficient is for you to fill out our pre-qualification form or enter a basic deal summary online. We will generally respond to your inquiry within a few hours, and no longer than 24 hours. When we receive your inquiry, one of our team members will review the information and then contact you to discuss your background and the transaction. We will provide basic terms for your consideration, and if you like the terms, we will follow up with a term sheet that outlines the entire structure.
Do you charge any application fees?
We will not ask for any money until you have a term sheet outlining the loan structure and all costs in detail.
What are your documentation requirements to close a loan?
For new customers, we require a loan application with written authorization to run a credit report and background check. For every loan, we require a rehab budget, property appraisal (generally a 4-day turnaround), your two most recent bank statements (proof of funds), and copies of leases, if applicable.
What Loan to Value (LTV) ratio or loan advance do you fund?
We lend up to 85% of the purchase price plus settlement costs and up to 100% of rehab costs, provided the after-repaired value (“ARV”) is 70% or less.
What interest rates do you offer?
For rehab loans, as of January 2025, rates range from 7% to 11% fixed depending upon location, property type, LTV, as well as the investor’s experience and overall credit profile. For rental loans, rates start at 4%, but keep in mind that these rates change weekly based on market conditions. Contact us for the most current rates.
Do you charge interest on the unfunded commitment of a rehab loan?
Unlike many fix and flip lenders, we only charge interest on the outstanding loan balance. We won’t charge interest on the unfunded commitment until drawn down, saving you money.
Will you refinance my property if I already own it and want to rehab and sell it?
Yes, provided you are not occupying the house and have no intention of doing so. We refinance many investors who pay all cash at foreclosure auctions and then use our funds to pull the majority of their cash out to reinvest into more properties.
What types of properties will you finance?
We lend on single-family homes, townhomes, condos, and multi-family apartments. We can also finance mixed-use commercial properties with a substantial residential component.
How quickly can you close?
We strive to close all loans within 10 business days of your initial inquiry, but we can close in 5 business days if all the paperwork is in order. In special cases, we have closed loans in as little as 3 business days to meet a firm closing deadline for a repeat customer, but that is more of an exception than the norm.
What paperwork do you need to get started?
We require no initial paperwork to pre-qualify you, just your number of past investments and estimated credit score. If you want to get a head start, you can submit a loan application, and we will complete our initial background checks to be ready for your first loan. If you already have a deal in tow, we can size your loan with just a few pieces of additional information: purchase price, estimated rehab cost, projected after-repaired value (ARV), and property location. All of this can be handled over the phone or email. If the deal sounds good, we will issue you a loan term sheet and begin documentation.
Do you ever speak and meet with the borrower directly?
Yes, we value relationships and meet with clients whenever possible, but it is not a requirement to fund your loan.