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What the client was up against:
As usual, this loan was referred to us by one of our referring brokers. Their client had purchased this distressed, uninhabitable 7-unit property at a steep discount. He invested a substantial amount of his own money into the rehab but needed additional funds to get the project over the finish line. The rehab had tied up much of his available cash, and to make matters worse, another property he had already completed was under contract but hadn’t closed yet, leaving him short of the funds he needed to finish this one.
Solution:
While many lenders won’t touch an incomplete rehab, this deal made sense. The borrower was an experienced contractor with a successful track record, the loan was at a low as-is LTV, and once completed, the property is expected to generate approximately $8,000 per month in rental income, providing a clear and realistic exit strategy. Again, the deal made sense and as a result we were able to put the file together quickly and close
The story doesn’t end there. Once the rehab is complete and the property is stabilized, the referring broker will have the opportunity to place the permanent DSCR loan as well, creating a win for the borrower, the broker, and our team.
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This wasn’t the biggest loan, but I handle every loan the same way. Whether it’s big or small, every successful closing is a win, and I hope it keeps you sending loans my way.
As is typically the case, this was a stated loan, required minimal paperwork and once we had everything from the borrower the loan closed quick.
If you have a client who fits any of the situations below, give me a call me at 510-463-4876. If the loan makes sense, the LTV works and the borrower has the ability to repay, we can fund it. Our loans require minimal documentation and typically close within 10–14 days
Loan Scenarios we see include:
- Cross Collateralized loans (100% purchase / Bridge Loan purchase / cash-out)
- Cash out for Business Purpose on Owner Occ
- Investor Purchase Loans
- Investor Rehab Loans
- Time constraints - Borrower needs quick close
- Borrower with unseasoned funds needs to close on purchase
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Loans on Residential, Commercial, Condo, Duplex/Triplex/Fourplex, mixed-use, Condo-Warehouse, Gas Stations, Vacant Land etc, etc
- Foreign Nationals
- Lease-option purchase with little or no money down
- Divorce, Probate, Partner Buyouts
- Borrower w/good credit wants to buy property, but is a few months away from having the taxes he needs completed for a conventional loan.
- 1031 Exchange and Reverse Exchange
Unlike other companies you get emails from, we're not a "Johnny-come-lately" lender. We have been a leader in the private lending space since 1999. I myself have been in Private Lending for over 30 years.
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