Pier One Properties looking for new properties to fund
January 23, 2006 (PRLEAP.COM) Business NewsPier One Properties Group, a private investment group, is looking for new
real estate development projects to fund. The group, based in Downers
Grove, Illinois, is a major financier of real estate developments and is
able to offer a credit line of up to 2 billion dollars.
"We are rapidly expanding and are actively looking for borrowers who have
viable large scale real estate developments to fund,” said spokesman for the
group, Dean Pieropoulos. He went on to say "all of our projects are based
on funding viable real estate developments and are loans are based on the
viability of the project rather than the credit of the borrower. This allows us to focus on the bottom line while allowing innovators in the field to come forward with ideas."
The private investment group operates with a 2 billion dollar line of
credit. A letter of credit is purchased on the client’s behalf and is
strictly backed by Pier One Properties Group’s cash. The letter of credit
is issued and the Pier One Properties Group authorizes a loan to be placed
against the letter of credit and the client is given a loan against that
letter of credit. Through this, the Pier One Properties Group is taking a risk based on
the clients Real Estate project that is looking to get funded.
The client receives a contract from Pier One Properties Group outlining
1. Clients have 15% of there own money and the principle is paid off in five
years on a balloon renewable on yearly bases.
2. 10% fee will be added (this cost will be rolled into the loan).
3. Terms Prime plus a ¼ interest only payments.
4. ½% per month letter of credit fee or equity stake in project.
5. 10% to broker separate fee agreement.
The program begins when investors put in $50,000, equivalent to 15% of the
loan amount of $333,000. After the borrower gets the loan, his initial
$50,000 is paid off leaving him or her with $288,000 for the project, which
is provided by the private investment group.
Using the procedure detailed above, the $280,000 loan is rolled into a
$1,800,000 loan and can then be rolled into a $10,000,000 loan or until the
desired amount for the loan is achieved. The previous loans can be paid for
by the next loan that is received and the maximum loan available is
$500,000,000. In approximately 120 days, a client can go from having $50,000
to having a loan of $10,000,000.
"By being based on viable real estate projects, we are able to fund projects
with excellent potential while maintaining our bottom line" Mr. Pieropoulos
went on to say.
For more information on this project, please use the above provided contact
information to contact the group.
Pier One Properties
Pier One Properties