80/20 Private Loan Program 

Also Known As  (4-1 Loan Program)
Image of people looking at loan papersImage of people looking at loan papers

Program Summary

​This program is with our Canada-based lender. For clients with a specific project to finance or have a series of projects that can be approved through a funding pool, the 4-1 Loam Program can provide a Credit Facility of up to 4X the client's Initial Funds Amount. 

1. It is a non-recourse loan and can be used for any type of commercial development, as well as many other types of non-RE projects (refer to suitable programs). 

2. 20% deposit is required for each project; the minimum deposit is $1 million (USD). However, for the 4-1 Loan Program, the client must have a minimum of $10MM USD in CASH  ($12.5M USD if you are keeping your funds in your own account) pledged to your project as the "Initial Deposit." The lender still has a loan option for clients under the $10M; however, they typically are a 1-1 on their capital.

3. Please note that the loan multiple will ultimately be determined at the underwriting stage based on the project. The multiple offered could be anywhere from 1-1 multiple, to a 4-1 multiple. In general, deposits under $10M see a 1-1 multiple, and deposits under $100M will most frequently see a 3-1 multiple. Those deposits that are $100M or greater, can be offerd a 4X multiple.

4. The lender will provide the balance of the 80% required for the project.

5. ​​​​​​​The general term of the loan is 4 years; the lender is flexible for extensions.

6. ​​​​​​​Interest rates are at the GREATER OF a "Flat 3.5%," or 1 Year LIBOR +2 (whichever is higher at the date of signing of the contracts); interest-only, with interest paid quarterly. 

7. Interest is charged only on funds drawn from the loan.

8. The client always keeps their "Initial Deposit" capital in "safe-keeping", where these funds are never exposed to any risk.

9. ​​​​​​​"Initial Deposit" would remain in the client's own bank account if it is $12.5M USD or greater; for amounts under $10MM USD, it would remain in the FEDERAL RESERVE BANK. The funds are fully insured dollar for dollar. This is governed by DEPOSIT AGREEMENT which will exist between the client and the lender. 

10. The project is then funded per the monthly drawdown schedule that is agreed to by both parties  (and the lender's insurer) as part of the Loan Contract.

11. Projects are completed as per the schedule, and the client may execute any of the four (4) Repayment options as outlined below, at the client's sole discretion.

12. Four (4) options:  (a) Pay-off the loan as per the Loan Agreement; (b) Renew the agreement for up to 48 months under the same terms and conditions as the original agreement; (c) Convert all or part of the outstanding debt to equity in the project based on a previously agreed-upon formula; (d) Convert the outstanding debt to a long-term mortgage.

13. Exit Strategy can be refinanced or sale of the asset of several other options.

14. ​​​​​​​The lender offers the same  Line of Credit program to governments and government agencies with an interest rate of 1% and a term of 4 years.​

Are there any fees in setting up the loan?

  • There is No Upfront Fee
  • There is No Retainer Fee

Fees and Underwriting

1. The lender fee is 3% of the total gross loan amount, due upon closing of the loan  (at first disbursement). This is paid directly from the Credit Facility, as part of the first disbursement. Your own "Initial Deposit" is NOT included in this calculation.

2. The assigned "Custodian Fee" is $5,000 USD/month  Management Fee for the oversight on the loan paid directly to PriceWaterhouse (the Lender does not derive any revenue from this process).

3. Legal/Closing Fees: This cost never exceeds 1% of the loan amount, with the high end (1%) only occurring in very complex transactions where appraisals may be ordered, and multiple lawyers becoming involved. In all cases, itemized closing costs will be provided to the borrower - most of the Loan Agreements are handled under 1/2%, which typically translates to $15,000 USD - $25,000 USD. The closing costs of any loan are the responsibility of the borrower.

4. Our success/consulting fee is 3% of the total gross loan amount, also payable at the time of the first draw.

5. Term sheet issues within 2 weeks from submission if the project is acceptable.

6. Full underwriting to the first draw is approximately 60-90 days.

​​​​​​​7. All funds are cleared through the US Federal Reserve Bank, European Central Bank, Bank of England, and the Central Bank of the Eastern Caribbean to guard against money laundering, any connection to terrorism activities, and the U.S. Patriot Act.
How to get started ​​​​​​
1. We need a complete Business Plan.

2. Proof of Funds, in the form of cash. Stocks and bonds are not acceptable. Document showing initial funds are ready to deploy (as well if the funds are from a 3rd party investor).
  • Letter from investor pledging the 20% (if applicable)​
  • Copy of investor's passport (if applicable - for anti-money-laundering protocols).
3. Submit application (we will send you an application checklist),

4. Use of Funds / Drawdown Schedule

5. The lender Loan Application Form:
  • If the applicant is a corporation or LLC, a copy of the "Articles of Incorporation" must be included.​
  • If the applicant is a Corporation or LLC, a "Board Resolution" (stating that the signatory has the authority to act on behalf of the Corporation).
6. Initialed and signed "FAQ" document

7. Signed "Sub $5MM Acknowledgement (If Applicable)

8. Initialed and signed "the Lender Benchmark Agreement"

9. Copy of Passport of Application Signatory.

Please send us an email to learn more about our programs!

Suitable Programs

  • Real Estate
  • Oil & Gas
  • Renewable Energy
  • Movie/TV Projects
  • Shipping Containers
  • Airplanes
  • Yachts and more