Securities Based Lending

GCF's Securities Based Lending Program.

This loan program is based on pledging marketable securities as collateral with low fixed rates and fast closings. This program can assist the borrower getting a commercial loan by enhancing the current project property with a more liquid collateral, and request can close in as little as two weeks or less.

GCF's Asset Based Loan Program provides an alternative for the individual or company that has marketable securities in their portfolio, and desires to use them as collateral, versus using real property as collateral only.
This service is also very helpful where a developer/borrower does not have sufficient equity to procure a loan in the current market. The service includes arranging loan guarantees, equity capital and/or Equity Collateral.

Under this Asset Based Loan Program, GCF charges a fee based on a percentage of the total equity, equity capital secured or provided, or loan guarantees. In most circumstances, the program is used by stock owners or by developers due to lack of cash equity by current investors, based on the Investors perceived risk of the project, borrower financial profile, or property type.

GCF acts to provide an investor to issue a Loan Guarantee, Equity Capital or Securities Collateral enhancement.

In addition, GCF normally requires a JV Equity Interest in each project under this program.

Disclaimer: GCF does not issue, sell, rate, or deal in any securities that a third party Broker/Dealer would be involved with.

GCF's Securities Based Lending Program.

Here are some key points of GCF's Securities Lending Program with examples of recent fundings: There is no underwriting of the property, borrower or purpose of funds. The only or primary information we review is the securities. So this product works great for:

Foreign nationals
Stocks held on foreign exchanges
Borrowers with limited income or if they cannot document income
Borrowers who have less than perfect credit
Borrowers who want to use funds for investment
Large loans - no maximum loan amount
Any investor with a stock portfolio is a good candidate

Only takes 24-72 hours to get a Term Sheet. Fast turn around. 10-14 days to close in many cases.

Rates are 2 ½% to 4 ½% fixed & Up.
The dividends are often netting the interest expense to zero or even a credit which is wired to the borrower.
Borrower retains all upside market appreciation.

Recent Transactions:

Borrower refinanced a $1.9mm commercial loan that had a rate of 7.75%. Borrower used a large stock position with a value of $2.9mm. Loan of $2.2mm (75% LTV) with a rate of 3.75% was used to pay off the commercial loan and excess funds were used for other business purposes.

Borrower needed quick funds to pay off a construction loan. Portfolio of stocks and mutual funds were used ($1.2mm in value) to receive a $900k loan (75% LTV) to pay down the construction loan. Rate of 4% on the loan, dividend yield is 4.3% so in effect borrower will not be making any interest payments.

Borrower needs a loan for house purchase but does not have income that can be documented. Borrower has securities to pledge so loan will be funded in a little over a week ($500k).

Remember:
Interest rates to 2.5% to 4.5% & up!
- Interest Only loan payments.
- Low closing costs, lender or transaction fees.
- Funds may be used for any purpose.
- Non-recourse loan.
- Broker receives .250 YSP on every transaction.
- Broker may charge fees & points.
- Minimum lender fees or points.
- Solicit loans in all states. No licensing required.

All we need to issue a term sheet (24-72 hour turn around) is the securities information (copy of broker statement works best).

For immediate information please complete the email contact form at the bottom of this page, or to have a consultant contact you, please call GCF's office at 850-432-9890.

Gulf Coast Financial Corp.
Paul Lukkar Realty & Business Brokerage
Nationwide & International
Resort Development, Apartment, Business & Manufacturing,Church & Non-profit, Construction, Joint Ventures & Permanent Financing on most Commercial and Income Properties!

850) 432-9890/ 850) 308-1261 fax
email: Plukkar@gcfloan.net
www.GCFLOAN.net