Golf Course Loans - Golf Course Finance

Golf Course Financing- Lending Guidelines

Loan Types

• Acquisition loans
• Refinance
• Construction loans
• Forward commitments

Property Types

• Private Equity Clubs
• For-Profit Private Clubs
• Daily Fee Golf Courses
• US Golf Resorts
• International Clubs and Resorts
  

Loan Amount

Loan amounts between $2 million and $100 million are preferred

Earn-outs

Loans may be structured with an initial funding at closing, plus an "earn-out" of one or more future advances. For instance, a loan might have a $5 million initial advance plus subsequent advances up to $8 million based on the future performance of the project

Loan Term

Most loans are for 5 to 10 years with negotiable prepayment structures

Amortization

Loan balances are generally amortized over 20 or 30 years

Interest Rates

Vary depending on loan structure, past performance and borrower strength. Floating over prime or LIBOR or fixed rates offered

Commitment Fees

Usually 1% of the loan amount. However, commitment fees can and will vary with the interest rate, perceived risk and other factors

Good Faith Deposit

An application deposit is collected upon signing of a proposal letter (size varies depending on transaction) and is applied to the Commitment Fee. The application fee is generally refundable if we are unable issue a commitment.

Studies

Phase I environmental study and engineering repost are required prior to closing. We may also require an appraisal, water report or other site specific report.  Consult with us at the beginning of the financing process as many reports we see can be easily updated, saving you time and money.