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Introducing the “BREFI”, A New Loan Programme by GMG

A major difference between these two is that new construction loans fund the construction of a new structure, whereas Bridge Loans allow investors to purchase land or property but typically do not fund any construction costs. A GMG BREFI combines them both into one service offering.<br>

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Introducing the “BREFI”, A New Loan Programme by GMG

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  1. Introducing the “BREFI”, A New Loan Programme by GMG

  2. Over the past 12 months, the most common funding problem is the lack of financing options at the early stages of a real estate project: land acquisition, initial development, real estate purchase before the renovation, equity cash out towards new development, etc. • GMG receives high-value financing requests in almost all major countries, and it’s been very clear that traditional banks are less willing to take on the risk of financing the early stages of a real estate development or project. There has never been a greater need for non-bank alternatives than now.

  3. Many of our high-net-worth clients have relied on the ‘long relationship’ with their banks (Implicit Put option) to be their lender of last resort, and when they are not, there is a scramble for financing options in a short period of time, which we see now. A separate issue is that banks, in general, may require recapitalization from losses due to Covid-19 and are looking to preserve capital.

  4. Bridge Lending (the B part of BREFI). • As many of you know, one of the advantages of bridge loans is that they allow the borrower to secure opportunities that you would otherwise miss. Another advantage is bridge loans allow for flexible payment terms depending on the loan agreements. You can choose to start paying off the loan before or after securing long-term financing. • Also, qualifying and getting approved for a bridge loan takes less time than a traditional loan, giving the borrower the convenience of quickly owning the asset and begin getting the project off the ground with the intention of replacing the Bridge Loanwith a more permanent construction loan, as an example.

  5. GMGBREFI • We created the BREFI to combine 2 types of mortgage origination effort into one single offering to help clients with their initial bridge and onto the next stage of funding, usually a construction or development loan. • For example, in some cases, the initial bridge loan is used to purchase the property or land and prepare it to be “Shovel-ready.” That is land or structure that has plans, zoning, and issued permits in place. Having these ready allows for construction to begin immediately after closing

  6. A major difference between these two is that new construction loans fund the construction of a new structure, whereas Bridge Loans allow investors to purchase land or property but typically do not fund any construction costs. A GMG BREFI combines them both into one service offering. • Investors who obtain a bridge loan will usually begin construction after they have refinanced out into their long-term loan.

  7. Contact us • Contact us: +1 830.217.6608 • Email us: info@gmg.asia • Website: https://usbridgeloans.com/ • Address: U.S. Bridging Loans118 Broadway STE 638, San Antonio, TX. 78205 USA • 171A Telok Ayer Street Singapore 068621

  8. Thank you

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