Real Estate Revenue Generating Properties Get New Financing Tool- 100% A&D, 100% Construction, 30% FF&E Allowed.
Taking a cue from years of leasing equipment, machinery and the need for little to no-cash, a Leaseback may be the best first step into bootstrapping a new project.


/Maryland News Articles/ - OLNEY, MD, February 12, 2008 - It seems that each week brings one or two new funding programs that are creative and innovative.

This week was no exception, and the one that really jumps out as a fascinating alternative way to finance a project is the 100% PLUS Leaseback Program.

The immediate benefit to the developer or borrower is no equity required in the deal.
To simplify it (and apologies to those who already know this), instead of getting a loan and buying a building, the leaseback lender buys the building, puts the title in the lender's name, and you make the lease payments.

With most conventional funding, you need a percentage of equity in the deal. Cash out of your (or someone else's) pocket.

With Leaseback, you need only make the monthly lease payments to the lender, (the Lessor). No cash up front. 100%.

Of course, you are still responsible for the project development, property maintenance and operation, and subsequent revenue generation through rents.

This Leaseback program allows you to get the building for 100% of the cost, PLUS 100% of the rehab or acquisition and development, plus 30% for Furniture, Fixtures and Equipment (FF&E).

The minimum value of the after-rehabbed or constructed property should be $50MM. The total need can go to $100 Million. The program is designed to facilitate the creation and preservation of capital by minimizing financial exposure, which is typically necessary for the acquisition and expansion of commercial properties.

Where the client already owns the property it is permitted to strip all the equity from it to the extent of its fair market value.

There are no cash-out restrictions based upon the time the property was acquired or the price the client paid for it.

If a client does not already own the property this program may be used for its acquisition.

In fact, it is possible for the program pay for 100% of the purchase price of an existing property or land PLUS 100% of the rehab/construction costs PLUS all the required FF&E.

Thus, a business may benefit from brand new, custom made premises upon which to operate and the certainty of a FIXED PAYMENT for the next 20-YEARS.The client is required to make no payments until the property is ready for business operations to commence. If the client wishes to purchase the property it has the option to do so at its fair market value upon each of the 20-anniversaries of the signing of the initial agreement.

The best projects this can fit are Assisted Living, Hotels, Resorts, Apartments... in other words, a REVENUE GENERATING property.

To learn more, visit http://preconstructioncatalysts.com and download the current funding program list.

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Press Release Contact Information:

Michael Weiner
PreConstruction Catalysts
President/CEO
18156 Darnell Dr
Olney, MD
USA 20832
Voice: 3015709100
Fax: 2403630062
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