Types of Lending

Types-of-lendingResidential Loans – These loans will be secured by first and second mortgages against residential property. Principal and interest payments on the loans will be payable monthly, unless otherwise agreed by Realty Investments Corporation.

Project Equity Loans – these loans are advanced to bridge the “gap” between the amount of equity which is provided by a developer and the amount available through conventional financing in the construction and development of residential, commercial or industrial property. Interest payments are usually due monthly or quarterly.

Construction Loans – These loans are advanced to finance the construction and development of residential, commercial, office or industrial property. Interest payments are usually due monthly or quarterly and may be deducted from progress advances on a work-in-place/cost-to-complete basis. These loans are higher risk than loans on completed buildings.

Interim Loans – These loans are advanced to finance a complete or substantially completed residential, commercial, agricultural, office or industrial building with potential for higher returns as a result of renovation, redevelopment, new tenancies or other circumstances. Interest payments are usually due monthly or quarterly. While the construction risk is substantially eliminated, the success of these projects is subject to market conditions.

Land Servicing Loans – These loans are advanced to finance the development of land zoned or approved for development to a condition suitable for construction. The development process includes, without limitation, clearing, grading, road construction, installation of sewer and water systems, underground utilities and other improvements such as roads, curbs and gutters. This will involve, where applicable, the funding of progress advances on a work-in-place/cost-to-complete basis. The initial advance under a land servicing loan may be made before development commences, but generally not before the subject property is zoned or approved by the municipality for the intended use. Interest payments are usually due monthly or quarterly and may be deducted from progress payments. Principal repayments are usually made as, and when, individual lots or parcels are sold. Land servicing loans tend to be higher risk because they are made at an early stage of project development.