Rockwick Capital

Saving Your Real Estate Development Project or Building

Saving Your Real Estate Development Project or Building

Standby Letters of Credit and Bank Guarantees are the only solution for real estate developers in this frozen credit market. We are in a lending environment when borrowers, such as real estate developers with creditworthy projects, who in a better banking climate would have no difficulty in obtaining conventional financing for their projects, now are required by their lenders to provide additional collateral in order to secure their financing.

Standby Letters of Credit and Bank Guarantees are secondary collateral, which means that they are only called upon in the event of default by the borrower AND after the lender has pursued its normal remedies to collect from the borrower. At that time, the bank issuing the Standby Letter of Credit or Bank Guarantee, will, after presentation of the Standby Letter of Credit or Bank Guarantee, pay any shortfall the lender may have incurred, and will be made whole.

Standby Letters of Credit and Bank Guarantees, which are bank instruments, are primarily obtained through Standby Letter of Credit/Bank Guarantee Attorneys, who have investment groups that back these instruments from their cash reserves, and are paid a fair return for the risk they are taking.

The typical cost is 18% per year. Once an owner of commercial real estate or a real estate developer obtains a Standby Letter of Credit or Bank Guarantee, they can have the SBLC or BG monetized by any lender, and save their property or project.


Categories: Economy

Tags: commercial default, investment banking, real estate development


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Joseph Schmotsky
Rockwick Capital

302-540-5030
Rockwick Capital
1000 N West St
Wilmington, DE 19806