IWC has a wide range of options including but not limited to Acquisition & Development, Construction, Land, and Mezzanine loans.

Acquisition and Development Loans

When part of the proceeds of a loan is used to buy the property it is called an acquisition and development loan or A&D.  The following items are typically included in an A&D loan:

1. The total cost of the land
2. All hard costs for horizontal improvement
3. All of the soft costs (this typically includes the sales commissions and the interest reserve)
4. A Contingency reserve

In most cases the developer’s cash contribution on an A&D loan is 25% of the total land development project cost.

Construction Loans

Often perceived as one of the most difficult and cumbersome of loan products, construction loans can be problematic and are often avoided by traditional banks.  It is crucial to have a seasoned lender help guide you through the process of acquiring and utilizing a construction loan.

Typically, a construction loan lasts from 6 months to a year and is used to build a house or building.  A long term mortgage loan pays off the construction loan once the building is complete.

Construction loans are paid in stages which occur during the time period in which a building is being built.  The lender must approve the completion of specific projects over the course of construction in order to release each infusion of cash.  As is to be expected, a long term mortgage must be approved before a construction loan will be considered.  These two loan products are often applied for at the same time.

Mezzanine Loans

Although complex, mezzanine loans are often a perfect solution for companies that are prepared to take crucial steps which will lead to growth. A Mezzanine loan can be structured as partnership debt or preferred equity. From a real estate perspective, the difference between a mezzanine loan and a second mortgage is that stock in the company is used as collateral as opposed to real estate.