Hello Fellow
Dealmakers:
Credit Enhancement Overview:
The following opportunity is a credit enhancement using real estate
collateral to secure a Stand
by Letter of Credit
to pledge to a deal that is secured by a bond district. The accurate,
candid description of what we are to do: We are to use the client’s
pledged assets to enhance deals that don't really need enhancement, and
collect as much rewards as we can for driving these deals forward now.
Further, we are to create instruments which the client can use to do it
again and again and further magnify his considerable wealth.
Providing an immediate 5% Fee to the client on all Financings aided by
the client’s asset pledges
Providing a 2.5% Fee to the client on all Financings aided by the client’s asset pledges every 6 calendar months (Semi-Annually) the pledge remains outstanding.
Obtain whatever equity kickers or residual benefits to the client that we can accumulate for him on the deals the asset pledges assist.
Please consider the nature of the enhancement as structured:
If $10,000,000 in enhancement occurs derived from the client's asset
pledge;
What does the Client get paid? 5% on $10,000,000 immediately =
$500,000.00
What
does the client get paid during the first year? 2.5% per 6 months on
$10,000,000 every year semi-annually = another $500,000.00 ...So during
the first year the client's "$10,000,000 credit enhancement"
paid him
$1,000,000 bucks. Now observe: What is the MAXIMUM PAYOUT the client's
pledge could be drawn on via the "credit enhancement"? ZERO!
The exposure is always limited to ensuring payments of interest and
during the first year those payments are escrowed in the supported
financings. The exposure in a given year is simply that years interest
payment (if it is not already escrowed); and he knows that the deal he
cuts brings him annual fees GREATER that years interest expense true
enhancement!
Further,
the Land Value already exceeds even the nominal enhancement figure; so
the client would make-out-like a bandit if we ever claimed title for
them. Further a tax assessment agreement which commutes to the client
and puts them in the absurd position of a future default which enables
the Land to be taxed for the client's benefit until the end of time or
total shortfall recovery. Further, Improvement Bonds can be stretched
thirty or forty years which means that if the client ever needed to
they could simply run tax free 4.5% carry on the property while it
became more and more valuable until they sold to clear or refinanced.
The client would pledge the assets to a Single Purpose Entity
which they would have a stranglehold on via Operating Agreement and UCC1 or whatever
device
including Super-Priority-Preferred the
client wishes.
Our
company would take that Pledged Asset(s) and create a plain vanilla
universally accepted standing letter of credit at the Single Purpose
Entity level. By doing this we protect the client from constant
examination and re-examination of their assets. We make the Bond Issues
fly through and get quickest fees and best equity kickers to the
client. Importantly, it also positions us to take advantage of a George
Bush parting gift whereby we can roll even a single-A Bank LC into a
AAA FHLB Guarantee WITHOUT DISRUPTING THE TAX FREE STATUS of the
Improvement Bond used for Infrastructure.
I have a current example of what we are doing. Please email for particulars:
Sincerely
Bill Perez
Wellington Capital Group Inc.
12797 Pineacre Court,
Wellington,Fl 33414:
561-784-7955 Local
Fax: 775-251-8840
Sincerely
Bill Perez
Wellington Capital Group Inc.
12797 Pineacre Court,
Wellington,Fl 33414:
561-784-7955 Local
Fax: 775-251-8840
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