For Educational Purposes Only—Not a prospectus or offering
What are we talking about?
Linville Consulting Services LLC seeks to remain on the cutting edge of mortgage and equity financing solutions for businesses and projects. In our quest to find safe, secure and financially rewarding solutions to bring mortgage and/or investment money to a business or project, we have developed a program that utilizes unique financial instruments. This innovative program assures that the initial investment is returned regardless of the ultimate success of the project or business. The safety and soundness of these financial instruments are not influenced by any financial markets, (stocks, bonds, commodities, etc.) nor are they influenced by political or economic upswings or downswings. All financial instruments are issued by A-rated or better multi-billion-dollar domestic (United States) companies. In addition to the protection of the investor’s investment capital, the investor will generally enjoy additional collateral, revenue streams, and profitable business activities thus making the investor’s ultimate return extremely attractive and lucrative while minimizing any chance of losing the initial investment capital.
This funding method was envisioned by Linville Consulting Services LLC in February 2007 when several worthy projects could not get funded because our investors would say, “I want to invest in this project, but I cannot afford to ‘risk’ my principal.”
With this obstacle all too well known to developers, business owners, mortgage brokers, and investors, we set out to find a solution to this situation once and for all. We made a diligent 18-month search, learned all that we could about the niche industry, and settled on only two organizations that have the resources, experience, track record, and business acumen coupled with sound investment insight to solve our clients’ funding challenges.
Here’s how Linville Consulting Services program works
Our client (borrower) presents a development, mortgage need, or business opportunity to LCS requesting that LCS secure the mortgage, equity funding, or requested capital for that need.
If the opportunity does not readily lend itself to routine mortgage, equity funding, or angle/venture capital funding, LCS submits the request for funding to our financial instrument provider and asks the provider to submit a pricing and terms quote.
Generally, for every dollar of capital the client needs for the project, loan or opportunity, the parties should plan on an investor requiring twice that amount in capital—about half to purchase the financial instruments through the instrument provider (Platinum affiliate) that have been carefully vetted and selected to meet the particular needs of the funding request and the other half of the investment to go directly to the funding need (borrower’s project).
The deal (underlying project financing transaction) must then be structured among the instrument provider, investor, and client (borrower). It might be a straightforward purchase of financial instruments with lending or equity participation in the underlying project (purpose for the funding request). Or parties may negotiate a joint venture, trust, limited liability company, royalty or other arrangement that would best serve the collective needs of the client and the investor. The financial instrument provider maintains a significant role in these recommendations based on investment, tax, fairness, and other considerations that should be weighed by the parties (client and investor) at the time of contracting with an eye toward maximizing the investor’s return and minimizing the borrower’s costs.
As the funding request “matures”, the investor receives the value of the object of the initial investment—the repayment of the mortgage, the buyout of the equity position, or the royalties/profit-sharing of the new or expanded business (e.g., the client’s project) as initially negotiated among the parties.
As the financial instruments reach their full term the investor is further assured to always receive sufficient amounts to cover one hundred (100%) percent of all principal and in most cases additional interest return as additional collateral from this source.
To protect all parties, invested funds and all related documents are processed through a third party holding trust/escrow established through the instrument provider.
Client has an urgent need to refinance a $3,000,000 first mortgage that has just been called. The property appraised for approximately $7,000,000. The Client’s underlying business is in a downswing and either traditional mortgage lenders are leery or the cash flow of the project/business is insufficient to cover the debt servicing during the economic downturn.
Linville Consulting Services makes a request to our Instrument Provider for approximately $6,000,000 in financial instruments to meet the needs of this specific project. The suggested timeframe for the investment is five years.
Our Instrument Provider identifies, analyzes and structures financial instruments to the specific needs of the Client’s need or project.
Client introduces an investor who knows with certainty its/his principal is ultimately safe. The structure of the transaction is then critical—does the investor take a simple mortgage position on the $3,000,000; an equity position in the property and underlying business and become essentially a co-owner with the Client; or do the parties establish a trust that owns the financial instruments and the property to be disbursed in accordance with an operating agreement that is mutually acceptable to the investor and the Client.
In the end, the $6 million investment is placed into the newly established entity, purchases a debt-free $6 million face-value instrument that matures in five years, pays off the $3 million debt of the Client business, and the title of the debt-free $7 million business is also placed into the new entity. For $6 million investment, the investor and the Client together create a $13 million debt-free business that is robust and able to grow without the lag of debt service!
NOTE: Linville Consulting Services LLC, Ltd is not a licensed financial planner or insurance agent. Linville Consulting Services LLC, Ltd has established strategic alliances with licensed professionals that enjoy years of experience in this field.
Linville Consulting Services, LLC is not a licensed financial planner, broker/dealer or insurance agent. Linville Consulting Services, LLC has strategic alliances with licensed professionals that enjoy years of experience in these fields.
