CaribbeanMortgageLoans.com
"Mortgages For Real Estate In The US, Canada, Mexico, The Caribbean & The World"
CaribbeanMortgageLoans.com
"Mortgages For Real Estate In The US, Canada, Mexico, The Caribbean & The World"
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Syndication Basics Private investors commonly and jointly invest in commercial and residential real estate development project financing. This commercial real estate investment vehicle is realized through the process of real estate syndication, wherein a commercial real estate loan is divided up and sold to investors willing to participate in the funding of that loan. By "participating" in the mortgage/construction loan, a private investor or group of private investors invest in one particular construction loan to finance a commercial or residential real estate construction development project. Then, prior to the loan closing, each participating investor is assigned beneficial interest in the mortgage, thereby recognizing them as a co-lender on the note. After closing, an independent loan servicing company then remits the monthly payments of interest-only until loan maturity; or, in the case of fully amortized construction to perm loans, investors receive monthly payments of both principle and interest. Privately funded participating mortgages offer a higher rate of return and a reduced risk to the investors. These higher rates of return are commonplace in the private capital markets today, and are currently being realized by investors who are active market participants in syndicated mortgages. Despite current economic conditions, demand for commercial construction financing remains high as many builders and developers have bankable and feasible projects that need funding. We evaluate these projects to be sure that their projected cash flows support the investors Risk-Adjusted Returns that offer them a manageable level of risk and an increased level of comfort. Our direct participation commercial mortgage investment program offers more flexibility in the project selection process than traditional banking institutions. This flexibility allows CML and our investors to facilitate the funding needs of experienced, qualified and well-known local and regional, builders, developers and construction companies who require rapid funding to acquire and/or develop real estate properties. |
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