PARK CITY, UT (June 19, 2010) — David M. Disick, private residence club pioneer and fractional finance expert, announced today that his company, Securities Based Fractional Funding, LLC.(SBFF) and Equities First Holdings, LLC. (EFH), have formed an alliance to provide securities based financing to domestic and foreign buyers, owners and developers of luxury fractional properties.
Steve Gordon, SBFF partner, noted that “today’s fractional investor requires a product that fills the gaps created by the credit crunch. Lending against the borrower’s securities portfolio eliminates those gaps and provides many other unique financing advantages over a traditional mortgage, margin loan or cash such as”:
- 100% Non-Recourse
- Below-market, fixed rate loans ranging from 2.5% to 4.5%. Rates are based on the performance of the security.
- Quarterly interest-only payments which are offset by any declared interest/dividend.
- Borrower retains all beneficial interest in pledged securities.
- Loan to securities values ranging from 35% up to 80%. The more liquid and actively traded, the higher the LTV.
- No Appraisals, Credit reports or Project Approvals.
- Not income or credit driven.
- No maximum loan amount (100k min.)
- Simple application process; consists only of a review of the most recent portfolio statement(s).
Despite the credit crunch and while access to liquidity through traditional capital markets is difficult, the SBFF loan enables borrowers to obtain funding at below-market rates by pledging the securities they own, under a collateralized re-purchase agreement, as collateral for the loan.
Eligible securities are publicly traded stocks, mutual funds, fixed income securities as well as foreign positions on certain international exchanges. Ineligible securities are securities owned in a privately held company and securities held in retirement accounts.
Successful stock-lending transactions have been executed involving the American Stock Exchange, NASDAQ National Stock Market, NASDAQ Small-Cap Stock Market, New York Stock Exchange, Over-the-Counter Bulletin Board and certain foreign exchanges.
EFH is a direct lender specializing in securities-based lending to investors, worldwide, in need of prompt funding. SBFF will be the exclusive worldwide fractional lending representative for EFH.
SBFF is a specialized fractional financing and consulting firm. Mr. Disick, a former Wall Street attorney, was recently named by Fractional Life to its list of The Top 21 Fractional Real Estate Professionals of 2010. Mr. Gordon has been originating mortgages for 30 years and was most recently the founder of Carteret Mortgage Corporation’s Fractional mortgage division
Readers wishing further information should feel free to contact Mr. Disick or Mr. Gordon at the contact points below.
David M. Disick, Esq.
SOURCE: Securities based Fractional Funding, LLC.