| equitytrust 2006-05-05, 1:21 am |
| AVAILABLE FOR ANY REAL ESTATE PROJECT WORLDWIDE
Equity Business Trust acts as a lender for property developers as well as the facilitator of guaranteed repayment facilities for lending institution.
Our guarantee financing concept is actually quite simple: The lending bank, upon looking at the borrower's assets and earnings, may not feel completely assured that the borrower can pay off the mortgage when it becomes due.
The normal Barriers when applying for a mortgage:
The lender first looks at the size of the mortgage request, your monthly income, the amount of security offered, the real estate project, and its financial risk and reward. Based on that information, he determines whether it fits within his guidelines. Then, most likely, the lender will require third party endorsement and/or collateral assignments. The third party provides the lender with assurance that the borrower's mortgage will meet the repayment terms.
Banks - and governments, for that matter - have been providing such guarantees for many years to eliminate the perception of risk. For example, a bank's irrevocable Letter of Credit and standby Letter of Credit, as well as 90-Day U.S. Treasury Notes, are instruments that support a wide variety of debts. Industrial Revenue Bonds, Economic Development Bonds, and much of the foreign government debt are additional examples of credit-enhanced debt instruments. The amount of this type of debt in the world today is estimated to exceed $1.8 trillion annually.
How do we cut through the red tape?
Equity, as the guarantor, issues a irrevocable Trust Debenture, in effect promising to repay the loan at maturity in the event that the client defaults.
Using a similar approach and applying it to real estate funding eliminates a major perceived risk. Equity Business Trust will provide credit enhancement and principal repayment guarantee facilities for our clients and their real estate projects.
How do we secure these loans?
We usually secure these loans by advancing the client an additional amount to be transferred into a blocked Trust Account, where it will earn and compound to the total principal amount over the term of the loan, thus insuring repayment at maturity. Equity Business Trust requires this instrument to be held in our safekeeping.
Each of your Investor is 100% protected through a guaranteed and secured Trust Account with a Triple A rated bank, irrevocable Trust Debentures and Bonded Life Settlement Policies, which are issued and bonded by "A" and "AA" rated insurance carriers. The secured trust account has as beneficiary's the names of each Investor to secure their capital to 100%.
In other words: Your business is responsible to pay the annual interest rate to each Investor and probably a profit share based on your Investor agreements. However, your business is never liable for the repayment of the Investment Capital, because the Insurance Carrier, the Bonding Company, their Underwriters and the Trustee Bank guarantee the full repayment of your Investors Capital at maturity.
For more information visit:
http://www.247equity.com/enhancement.php |