At CLX we have a number of Specialty Loan Programs available to us. These programs are specific programs serving niche markets. A few examples of some specialty loan programs we work with are as follows:
1-4 Family Rehab Financing: We can get up to 100% financing on the acquisition and rehab expenses associated with 1-4 family housing. This financing is limited to no greater than 70% of an “As-Completed” appraisal on the property / project. The loans are generally short-term in nature, no longer than 9 to 12 months. The lender allows sufficient time for the investor to acquire the property, rehab it, lease it, and stabilize it for a refinance into a more traditional investment real estate financing.
Bonding of Retail Centers: We have the ability to get “A” Rated or better leased retail, office, or industrial properties bonded. By bonding the property rather than getting a conventional mortgage, an owner / investor can get back up to 100% of the value of the property. In essence the lease collateralizes the bond that is issued, and the Borrower can get as much debt as that lease can adequately support based on the interest rate, the remaining lease term, and a 1.05x debt service coverage ratio. This product is excellent for Borrowers that want to minimize the cash they have in certain real estate assets, and want to redeploy that cash elsewhere, while waiting for the lease on that asset to pay for itself.
Veterinary Lending: We have available to us specialty lending programs for Veterinarians and Veterinary Practices, allowing for up to 100% financing for the acquisition of an ownership interest in or a complete acquisition of an existing Veterinary Practice. Advance rates will vary depending on the Veterinarian and the Practice, but we work with lenders that have an in-depth understanding of the industry and that have specific lending programs geared towards the Veterinary Industry.
Franchise Lending: We have a franchise lending program available to us where new or expanding franchise owners short on the capital to get traditional financing can partner with a franchise lender. The franchise lender then funds the new business but takes a 50% non-controlling ownership in the business. The Borrower operates and manages the business, with the lender getting a preferred payout on the capital they have invested after a reasonable salary is set for the owner. Once the lender is paid out over typically a five-year term, the Borrower has the opportunity to buy-out the lender.