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 Equity
Gap Lending (EGL) originates both bridge and mezzanine financings
across the United States. EGL is a Lender, not a broker.
EGL provides equity to real estate owners who do not have adequate
personal liquidity. Most real estate professionals (operators,
developers, investors) often have the problem of not having
sufficient cash equity to either purchase or develop
properties. They historically had to
syndicate the equity needed to complete a transaction, and
consequently give a significant portion of the profits from each
deal to the investors in the properties.
Many real estate professionals feel if they could have borrowed
these funds and maintained
100% of the
equity, that they would achieved significantly higher profits.
Unfortunately, banks and traditional lenders
do not typically provide these creative types
of loans. EGL has created a program where qualified real estate
professionals have an additional equity alternative. They can
borrow the equity from EGL. EGL's program is expensive and is only
economical for short term periods.
EGL's program is designed for real estate investors who want to
either develop or redevelop properties, acquire existing properties
or even do forward §1031 exchanges. Our target equity loan is
between $500,000 and $5,000,000 and is designed for someone who has
an exit scenario within 18 months.
 The
principals of EGL have completed over $1,300,000,000 of real estate
acquisitions for their own account, and consequently, as borrowers
are aware of all of the issues necessary to close or refinance
properties including the time considerations. When borrowers have
met all of the conventional lenders’ requirements, i.e. appraisals,
environmental reports etc., and have good legal counsel, we can
typically close our equity loan within 2 weeks.
Because most first mortgage lenders prohibit second liens, we will
work with the borrower and their counsel to adequately secure EGL's
position with hypothecation of member interests, beneficial
interests or partnership interests. We are not limited to a
classical loan format and are creative structuring the transaction
as to not interfere with senior loans.
EGL understands that complex real estate transactions often require
committed capital along with speed and certainty. EGL is comfortable
evaluating each senior and mezzanine loan quickly and providing our
borrowers with the certainty of closing. |
