Page 9 - Nikols - Annual Report 2022
P. 9
NISTIC LOANS
ols Compan ’s reputa ion within the le din commun ty for cr ati e loan s ruct res and qu ck, certa n
loan c osin s attrac s numero s lendin opport nities at rat s s at fr hat a e fr que tly above ess r liab e and le s
n liab compet tors. Becau the Fu d’s loans re sh rt- erm and al s
n ow ts bo row rs to unl ec ck value, certa ty
of clo in at tim s e s mor i port nt than g ttin the lo est intere t rate. he F d’s borrow rs typica ly
have o port nistic purcha es, uniqu situat ons, infil constr ction opport nities, and q ck losin s that a e
il ted to ins it tional financ ng becaus these ender are of -su en onstr ined by tig t egula ions, infle ble loan
p ers, and b den ome proces es.
HEALT MARKET S
Econom c growth rent low v owth
rent low v anc rates nd ac ess ble capita are co tin ing to sup or health y
commer ial real e tate market . In th e viro ment, short erm, well- derwritten bridge and co str ction loans
rong collat ral have m nima risk b caus compet tive debt m rket and on oin sales ctivi y provid e
solid epaym nt source .
MINIM RISKS
d r quir s 1st tr st eed c llat ral with m anin ful borrow r equity and th po tfo io is bui t ety with a curr i n a T u l loan t val e LTV) f 63% an T a und i n a T u l mit port f 75% an T e F d’s portfo io is als o
d fied across 24 loa s n Cal n inf fo ng ns fo ia nia, inclu ng loans n Cal n inf ll for-sa e reside tial develo ments, indus ial
proper ies, apart nts, fully ntitl d apartm nts, full nt and le sed le sed indust single ial
proper ial land a d le sed le sed indust single tenant triple
ail proper ies. Short erm loans imit nvest r exposu e to mar os et change while llowi g borrow rs
to add va ur ue nd qu ckl reposi ion an ass ck t ia re ova ion or gro nd rn up con tr ction. Inves r return come
f rrow r intere r profit t collec ed and di tri not uted monthl and do tri not re uir borrow r intere r profit price ains,
om c growth 8
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