Asset Based
NIV Loan Product !!!!
Minimum
Loan: $200,000.00
Benefits
- Fixed interest rates .
Interest Only
quarterly loan payments
- Loan terms of 3, 5, 7, or 10 years
- No income, citizenship or credit criteria
- Funds may be used for any purpose including real estate purchase,
business expansion but Proceeds of the loan may not be used to
acquire publicly traded equity securities.
- Non-Recourse Loan. The loan is only collateralized by the pledged
securities (Stocks, Bonds Etc) - not real estate or other personal
property
- Loans available for up to 80% of the securities' value
- The borrower keeps all dividends and upside market appreciation of
the securities
How It Works
- Loan-to-value ratio and the interest rate are driven by
what securities are pledged. The more liquid and actively traded
securities the higher the loan-to-value ratio and lower the interest
rate.
- No principal amortization or loan prepayment Interest Only
- At the end of the loan term the loan may be renewed, refinanced,
or paid off.
- At pay off, the exact number of shares or collateral initially
pledged is returned to the borrower.
Default trigger set at 80% of the loan amount not 80% of the
securities' value like typical margin loans. For example: securities
value of $1MM, loan of $800k, default trigger at $640k (80% of the
loan amount). If the securities value fell below $640k the borrower
could walk away from the obligation of repayment of the loan and
securities and keep the original loan proceeds($800k) or contribute
cash or securities to bring value back to $640k.
Criteria
- The stock must be free-trading without any restrictions and the
borrower cannot own more than 10% or more in the company of the
issuer.
- Retirement funds (401k's, pensions, etc), do not qualify for this
program.
The process of acquiring a loan through Dr. Robby Gordon is designed
to be done quickly and efficiently due to the unique personality of
the security and time value of money. The following steps are taken
to ensure the timeliness of the transaction which is usually 5-7
business days.
1. Contact Dr. Robby Gordon with complete details on the proposed
collateral and the amount of non-purpose funding needed.
2. Provide proof of ownership of your stocks, bonds, or options with
either electronic or certificate documents. Eligible collateral
include free trading securities and restricted securities which are
available for trade.
3. Dr. Robby Gordon will first determine the viability of the loan
and then calculate a loan to value ratio, or LTV, and the interest
rate, based on an assessment of both short and long term risks. At
this time you will be sent a term sheet with all of the elements
stated above.
4. You agree to terms, sign all contracts, arrange for your assets
to be transferred , and make quarterly interest payment.
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