Analagous to co-signing loans, Opportunity Investment Capital provides credit enhancements to principals in commercial real estate transactions. Situations that can call for a credit enhancement could include:
- Bank calls the loan (for banks internal reasons, unrelated to property)
- One of principals on the note has below ideal credit
- Debt to Asset ratio out of bank’s comfort zones.
- Type of property not in accordance with norms which traditional financing source seek.
- Hard money covenants or other refinancing requirements bring about significant time pressures.