Loan Parameters

Property Type – We will consider financing any type of commercial real estate including office, industrial, retail, hotel and land development.

Financing Type – All types of financing needs are considered including acquisitions, refinance, conversion, partner buy-out and project repositioning. We can make whole loans or provide “first loss” financing support as appropriate.

Transaction Size – Our target loan size is $2,000,000 to $15,000,000. However, we do consider larger loans through our “first loss” program.

Loan Rate – Starting at 10%.

Points – Starting at 3.

Reserve – We typically provide for a one year interest reserve and payment of points through the loan funding.

LTV – Up to 75% of lender’s valuation for qualifying borrowers and property types. We can go higher taking into consideration additional collateral and guarantees.

Term – Typically 12 months with a 12 month extension option.

Prepayment Penalty – Usually none.

Ownership – Most entities accepted.

Recourse – Full recourse to individual borrower and guarantor required. Exceptions allowed at Black Mountain Capitals’s discretion.

Security – First mortgage lien on the subject property, assignment of leases and rents, pledge of partnership interests, UCC on other collateral.

Expense Deposit - $10,000 non-refundable due diligence fee and $15,000 legal and consultant deposit. Unused portion of the legal/consultant deposit is refundable if Black Mountain elects not to proceed.

Origination Fee – Brokers are protected. Typically we pay a 1% broker fee, though fees can be higher or lower depending on the circumstances of each individual loan.

Commitment Fee – None

Third Party Reports – Appraisal, survey and environmental reports, if applicable, are required. Existing reports may be acceptable and may be pre-approved.

Closing Time – Most loans can be closed in 14 to 45 days.