AU MIN Africa PTY Ltd. (GRYEF)

[Geccos Greed]

What you get is the Letter of interest first, Then the term sheet, then the commitment. Once you get the commitment, the loan is usually locked up. Also, they use hard money lenders that look at the value of the property, not so much of what the business is doing. The loan to value is low. Usually 60%. They also go off of a value that they feel that they could sell the place to a cash buyer in a 3 to 6 month period of time. And the lender usually holds back an interest reserve that covers the mortgage payments for 2 to 3 years. This is how it works.