Ferguson & Brewer specializes in forming private investment groups to make loans secured by income property.

Summary of FBIC Loan Program

Our company forms private investment groups to make loans secured by income property. Summarized below is information about the types of loans that we make. A private loan funded by FBIC allows the borrower to do the following:

• Close the loan quickly, in about 30 days

• Avoid the hassle and uncertainty of an institution, and

• Obtain a loan that may not be available from an institutional lender, such as secondary financing
or a loan for the purpose of borrowing some of the property's equity.


The loans are secured by existing income property under the following general guidelines:

Amounts of $500,000 to $2,000,000 secured by first or second liens. 4 to 6 points, up to three-year term, interest only at 12%-16%. No prepayment for one year. Borrower pays closing costs, title fees and loan document legal fees.

Existing income-producing conventional property with multiple-year history.

Excellent or good location in thriving local economy.

Total loans to value ratio less than 80%; real equity at risk.

Debt coverage ratio on actual NOI over 110%.

Substantial financial statement of guarantor.

Property type that can be managed conventionally.


It is not essential that each loan has all of these elements, but the more there are, the easier it will be to commit and fund promptly. Under normal circumstances, funding is completed within four to six weeks from initial inquiry.