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.    


Acquisition of Non-Performing, Sub-Performing, Performing Notes

  • $5 million to $75 million
  • 2-year loan terms, plus extensions
  • 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

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.

Lending experts

Our team of professionals can offer note-on-note financing solutions for opportunistic projects.

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