BLCP is a private lender to real estate investors/developers (borrowers) who require short-term (typically 12-24 months) financing facilities to complete an acquisition or to refinance a current asset. BLCP anticipates charging borrowers in the range of 12-18% for private capital. The rate variance is based on market fluctuations, evaluated risk of specific loans and market opportunity. Return will be augmented by origination fees (points) of approximately 2%-6%. A loan whose term is greater than one year will require extension fees similar to the origination fees in order to execute an extension.
BLCP imposes rigid parameters for Loan-To-Value (LTV) ratios for these loans meaning that BLCP will assess the value of the asset and restrict borrowing to a ratio in the realm of less than 60% of current asset value. BLCP will also impose internal limits on how much of its capital base is lent to any one borrower.
BLCP is initially focusing its loan underwriting to properties in the southwest – our historic regional focus. BLCP’s principals have significant experience and exposure to this marketplace including acting as Pension Advisor for one of Arizona’s largest public pensions for over 12 years for it’s private lending portfolio.