MEZZANINE LOAN TERMS

Property Type: Residential "For Sale" Home Building Projects

Property Location: Anywhere in the Greater Washington DC area

Collateral: Pledge of ownership interest in the development entity, subordinate Deed of Trust and appropriate Guaranties.

Funding Size: Target range from $250,000 to $2,500,000. Loans typically represent 66% of the required equity amount.

Leverage: Up to 90% (including mezzanine) of project cost.

Loan Term: Typically 1 year with a clear exit strategy in place. Prepayment anytime after 6 months without penalty.

Rate of Return: The interest rate and exit fees are competitive with other mezzanine lenders. The total return typically equates to 33% of a projects proforma profit.

Fees: (a) .5% application fee (b) 1.5% origination fee (c) any out of pocket costs incurred in connection with the loan (legal, due diligence, appraisal, etc).