Sometimes responsible commercial mortgage brokers get thrown into situations that are not all that pleasant, and also even more complicated. However, when it comes to clients’ interests we believe in committing ourselves to help them through thick and thin. Well, thin describes it when – try as a property-owner entity may – it can’t service the loan and things head south from there. When the situation gets really bad the troubled entity with its commercial, industrial, and mixed-use real estate faces bankruptcy and is placed in Chapter 11. That’s where we can stand steadfastly by to help with a category of leverage known as DIP Financing (or Debtor In Possession Financing). Read on for more information on how DIP Financing works.
Typical Terms for DIP Financing
- Amounts from $1 million up to $40 million
- companies must currently be in chapter 11 bankruptcy reorganization
- Any commercial real estate assets can be used as collateral so long as there is sufficient value
- Use of funds can vary, however must be approved by bankruptcy court
Clopton Capital is a nationwide mortgage broker focused on the needs of private investors, small/middle market real estate entities, and family offices. When they run into difficulties our agents are hard-pressed to deal with their partnerships, trusts, corporations, LLCs, Delaware Corporations, and estates (even foreign national holdings). It’s at times like this that DIP loans provide a valuable resource to actually benefit all parties if introduced with professional guidance.
Our relationships with lenders all over the USA are legendary, based on 10 years and billions of dollars of closed deals under our belt. If your real estate is in Chapter 11, we are well positioned to give you direct access to the most competitive DIP lenders active in every city, town and rural district from coast to coast. Our professional loan officers can approve applications from $1 million to $40 million for any arrangement that’s asset-backed with enough equity reflected. It makes no difference how, when, or where the problems emanated from. We deal with DIP situations that have affected commercial mortgages, construction loans, cash-outs, refinancing loan vehicles, CMBS, bridge lending, preferred equity, and real estate private equity for every property category that includes factories, mobile parks, self-storage, retail malls, and offices – to name but a few.
When bankruptcy hits a real estate development and it goes into Chapter 11, a restructuring traditionally ensues. At this point, it’s undecided even with certain accommodations approved by the court whether the trouble can be resolved or not. A willing DIP lender will be allowed to enter the picture if both the courts and existing lenders agree that the cash injection has a fighting chance to get the beleaguered real estate over the hump. Notably, the DIP lender ranks as the first claimer so mutual consent of all parties is imperative.
Asset-backed DIP financing is here to help investors save their real estate value after all else fails. It applies to every commercial lending situation gone wrong as long as there’s a Chapter 11 scenario in effect. It covers anything from original straightforward purchase transactions to original arrangements for construction, bridging and refinancing loans. To learn more contact one of Clopton Capital’s commercial mortgage DIP lenders by calling 866-647-1650 or using the Contact Us form available from the menu. You’re always welcome to work with us to find the DIP loan rates and repayment plans to suit every Chapter 11 possibility. And with low closing costs attached to a straightforward documentation and underwriting process, your DIP loan process will release a lot of your stress.