Borrower is a Florida-based family business with outstanding credit. The principals purchase, renovate, and operate convenience stores with gas islands. Local banks in Georgia will not lend to out of state residents for acquisition and renovation - Harvest will. Once the renovations are complete, the borrower gets traditional instuitional financing from their Florida resources. The loan terms on these transactions are usually 15 - 18 months. Average loan size is $225,000 to $300,000. (Latest transaction borrowers owned the center free and clear, Harvest loaned renovation dollars only.)

Borrowing entity is a real estate developer and property manager who puts acquisitions together. Harvest lends usually at 50% loan to value on these transactions, borrower pledges additional collateral to compensate for any risk in the transaction. Personal guarantor on the loan has outstanding credit and reserves to support the loan. Loans are usually on the books for 18 to 24 months and average $250,000.

Borrower bought a parcel of land to develop into a small subdivision. He paid cash for the land and wanted to get some of his cash back while due diligence on the project was being completed. As he had done some development work on the project, a local institution would not consider the transaction. He completed his due diligence and obtained refinancing for construction – loan was paid in full in 7 months.

Borrower was an airline employee with great job stability, good credit and reserves. He found a single-family home in a strong neighborhood in Atlanta, which needed renovation. The purpose of the loan was purchase and rehab of the property. His goal upon completion was to refinance and hold the property as an investment. Loan was paid in full in 13 months.

Borrower’s development process of one acre, luxury residential subdivision lots extended longer than anticipated. He had been operating out of cash reserves; his bank was unwilling to make him a loan since he had already begun his due diligence process. Harvest made the loan, which on a per lot basis, was less than 40% of finished value thus giving us a significant equity position. Harvest’s exit: we showed a couple of local developers the project, both expressed interest in completing the project in the event of a default.

Harvest funds bridge loans, also known as mezzanine financing, from 5 million for the acquisition, construction, renovation and refinance of apartment and condominium buildings and retail, industrial and office properties in the Southeast.

For example, Harvest financed an apartment developer in order to buy an old apartment complex. Borrower purchased and renovated over an 18-month period. He then refinanced and Harvest was paid in full.