Long Term & Tiered Financing


Going to a single loan source (particularly a commercial bank), you may get only one loan product. This is usually a 5 to 10-year loan, possibly with a 20-year amortization and a 5-year reset on the rate.

Banks put the “interest rate risk” on the borrower, squeezing your cash flow for the duration of your ownership. So, when a local banker tells the client “I’m sorry, but this is the market,” most borrowers shake their heads, sigh and sign the loan docs.

Remember, the banker works for the bank – GPS Capital works for you. Because “Cash flow is the life-blood of any business,” interest rates directly affect your monthly payment amount and each payment impacts your cash flow (Finance 101).

Through its years of experience and relationships, GPA Capital can source your capital needs through multiple sources - each of which has their own unique “user/client” advantages.

Tiered Loan Types

“Capital” is a tool in business, and like any tool, each has a specific purpose. Most, if not all businesses, gain access to capital through loans. Examples of loan types are:

Investor/Lender Specialization

Banks are mandated by federal law to satisfy their CRA (Community Reinvestment Act) requirement by providing capital (usually via loans) to help meet the needs of their surrounding area. However, one must be aware of lenders who specialize in each of the tiers referenced above. Banks generally like construction loans if they are knowledgeable of both the area and the borrower because they can closely monitor the progress of a tangible asset. This qualifies as a short-term asset on their balance sheet - which is how banks are rated by the Fed.

Intermediate term loans can also be arranged through that bank, or, if over a year, we will source with a lender specialized in that arena. This may be the need for an investor which is savvy in tenant build out and income stabilization.

The long-term loans are best sources through a portfolio lender who purchases your loan as part of its long-term investment strategy. Long-term “take-out” loans replace interim financing, such as a short-term construction loan. These are usually mortgages with fixed payments that are amortizing.

Advantages with No Disadvantages

GPA Capital will underwrite your loan and show you your options, potentially saving you thousands, 10’s of thousands or even 100’s of thousands of dollars (depending on project size). We handle the packaging and submission - from the application to the closing - and can be accommodated in one closing, or alternately, the execution of a tri-partite agreement by the various investors/lenders.

In other words, why risk the changes in the economy and the resulting uncertainty. This is your business, take control – and we’ll get you there. You are our client.