Loan Programs > Commercial Real Estate > Note-on-Note Financing
Note-on-Note Financing
For opportunities to acquire both performing and non-performing debt, Ready Capital offers note-on-note financing for experienced opportunistic sponsors.  Â
Overview
Acquisition of Non-Performing, Sub-Performing, Performing Notes
- $5 million to $75 million
- 2-year loan terms, plus extensions
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Future advances available for interest shortfalls and business plan execution
- Flexible prepayment
- Future fundings available for property improvements and other capital needs
- Structured as note-on-note participation
- Conversion to first mortgage feature
- Revolving facilities available for portfolios or future acquisition
Future advances available for interest shortfalls and business plan execution
Note-on-Note Representative Transaction
- $28 million loan for the acquisition of a non-performing note collateralized by a 887-bed, student housing property serving Washington State University
- Non-recourse
- 24-month term with extensions
- IO during initial term
- Flexible prepayment
- Conversion to first mortgage feature
- Future funding for interest shortfalls and soft costs
Why Note-on-Note Financing with Ready Capital?
We are actively working with clients to structure the right solution for experienced opportunistic sponsors.
- Ready Capital is a leader in non-recourse bridge lending, offering competitive, customizable solutions for transitional, value-add, and event-driven commercial and multifamily real estate.
- Our team brings clients certainty of execution through a collaboration of production and credit experts for a streamlined, up-front credit process.
- Post-closing, we strive to exceed clients’ expectations through our in-house, client-centric portfolio management platform.
Note-on-Note Lending Experts
Our team of professionals can offer note-on-note financing solutions for opportunistic projects.