Loan structures vary widely for term financing collateralized by the types of fixed assets listed above. A sampling of characteristics from deals Essex has closed in the past include:

Owner Occupied Real Estate Financing

• Traditional 70%-80% LTV financing based on appraised value
• Company performance / debt service coverage important
• Long term deals available (up to 25 years) at very competitive interest rates
• Personal guarantee usually required

First mortgage on owner occupied or investment real estate based on collateral value alone

• Company (tenant) may have had a difficult recent financial operating history
• Lower LTV (typically 50-65% of appraised value)
• Often shorter term than traditional real estate financing (between 1-3 years)
• Interest only payments available
• No prepayment penalties
• Personal guarantee usually required

Investment Property Loans

• Underwriting based on the property cash flow, or Net Operating Income
• Tenant credit and length of leases considered
• Principal's personal credit often reviewed

Equipment Financing

• Loans and leasing products available
• Types of collateral readily being financed today include yellow iron, fixed assets, vehicles, other
• Varied terms and pricing depending on owner credit, debt service coverage, etc