The Advantages of a 144A Bond Funding
When talking about the 144A Bond Funding, this is considered as the lifeblood for developers who actually consider an easy source of cash for their projects on both non-real and real estate projects. Those who opt for such an option of financing their projects could take advantage of its fast, low cost and also its non-recourse of funding option.
Real estate developers also consider opting for such type of Bond Funding due to the different unique benefits that it can offer for them than the other conventional ways of getting cash. Projects that are suitable for such kind of funding would include the stabilized real estate projects which have good credentials and also viable exit strategies and good experience in the field and have proven principles as well. This kind of funding also is suitable for business financing options for different industries and non-real estate sectors.
A 144A Bond Funding can also offer unique advantages than the standard funding options for people, which is able to make a lot of difference than the profitability of any project which is funded by it and a good source of capital for the business.
This kind of funding also doesn't need personal guarantees from the loan taker and can offer a 100% LTV. This also doesn't need any verifications of your assets and doesn't need any credit checks before being granted the funds. This makes it a suitable choice for the real estate developers who are in need of fast cash, which will help them in funding their projects, which can be a very long process than traditional funding institutions.
Another thing is that the turnaround of such funding is shorter than other funding options available and usually takes around 90 days.
When you go for the 144A Bond Financing, it will not lead to the loss of equity when you go for such a funding option. This is truly a big advantage for those who are not willing to hedge the control of the business just for the funding.
The underwriting fee which the loan taker will need to pay in getting the fund is very low than other credit options for the said type of projects. The fund also is available for all regardless of the area of operation. The lowest amount that’s being granted for such a fund is estimated to be around $10 million and the maximum could reach around $500 million and there are no caps with the limit.
To simply put it, a 144A Bond Funding is a very flexible payment term that is truly convenient for those who get the fund which they use for projects and making it profitable. It also comes with very low underwriting fees. The amount that's being charged as an underwriting fee will vary on the case for project funding.
The needed requirements to get such kind of funding would be where you need to show double the amount of underwriting fee through your bank account by the client. Also, clients have to show their three months of seasoned funds and must have a strong business plan, executive summaries, and an effective exit strategy.