Asset Based Financing

George Smith Partners has recently originated and/or placed several loans driven primarily by asset quality and location for less-than credit worth Sponsors. The risked base pricing ranges are wide based on quality and the potential exit although coupons traditionally run between 7.5% and 9.0% to 65% of value for a 2 year term. Fees from these non-institutional lenders run from 1% to 3% and often can be structured in-part as an exit fee to preserve capital at funding. Entitled land tops out at 60% for a slightly wider yield. The requirement for an MAI appraisal and Borrower recourse varies based on transaction and leverage.