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The Private Equity Opportunity

Investors with capital to lend have never had a better opportunity to capitalize on yields available through private real estate equity financing.

  • The mortgage-induced credit crisis has caused most lending programs to vanish, leaving fewer and tougher options available to borrowers.
  • Property values have dropped  with further downside potential.
  • Today’s challenging economy has led many owners of quality real estate to access equity in their properties for capital requirements.
  • Equity markets have been severely rattled.
  • Bond markets have been shaken and the appearance of safety lifted.
  • Aggressive interest rate cuts have left current income yields at historical lows.

GreenSpring Capital’s Solution:

As a private equity lender, we are positioned to:

  • Capitalize on the dislocation in the credit markets.
  • Provide sources of capital in a tougher credit economy.
  • Fill the tremendous void left by traditional bank financing.
  • Offer an alternative investment solution with a consistent source of high current income.

Why consider private equity lending today?

  • Property appraisal are based on today’s value not the market peak.
  • Loan-to-Value (LTV) ratios are very conservative at a 70% maximum vs. 75-80% over the last several years.
  • We primarily secure first-position and second position loans.
  • We are able to provide more attractive yields (generally 8%-10%) to our investors with relatively stronger protective equity positions.
  • We favor short to medium term loans of 1-3 years with an average loan duration of 18-36 months.

Private real estate financing effectively fills a glaring need in the lending marketplace. Conservatively underwritten first-position trust deeds provide borrowers locked out of traditional loan programs the access to much needed capital these loans provide investors the chance to earn some of the highest current yields available.

Disclamer: As economic conditions change, the rates and terms offered for certain type of loans , including trust deeds, may also change.