Note Acquisition FINANCING

A10 provides flexible and timely funding to small and medium sized investors acquiring performing and sub-performing loans secured by commercial real estate.

TYPICAL Note Acquisition SITUATIONS FINANCED

  • Single loan purchases
  • Small loan pool purchases
  • One-off purchases
  • Buy – Resell. Transactions in which the note investor looks to buy loan at cheap price and eventually sell the loan to another lender at a higher price
  • Buy – Liquidate. Transactions in which the note investor looks to eventually foreclose and sell underlying commercial property
  • Buy – Hold. Transactions in which the note investor clips coupons on the loan until maturity

Note Acquisition FINANCING TERMS

  • Advance Rate: Up to 65% of the loan acquisition cost
  • Financing Amount: $500,000 to $10 million (per loan)
  • Pricing: Rates and fees adjusted for risk and leverage
  • Term: 1-5 years (preferred term is 2-3 years)
  • Future Funding: for lease-up costs and earn-outs
  • Eligible Loan Types: Commercial real estate secured
  • Recourse: Non-recourse available based on property and loan characteristics
  • Timing: A10 usually works simultaneously with its clients during the loan sale process to ensure there is sufficient time to close once an agreement to buy the debt has been reached

BENEFITS OF A10'S Note acquisition FINANCING

  • Non-recourse option available at lower advances
  • Speed
  • Highly experienced team to assist in closing complicated note purchase transactions
  • Focus on single loan and small loan pool purchases
  • A10's note acquisition financing provides investors capital to acquire more debt assets and to leverage returns