Closing of the Week – Commercial Hard Money!
Loan Amount: $520,000
The Story: This was actually a purchase of $390,000 that we got him CASH OUT on. But like most of the deals that are done with our private money fund, there was a story. The deal came to us from a broker in my network. It was a flea market type of property, not one that many people want to lend on. The borrower had bought it cheap, fixed it up and rented it out-it was cash flowing and appraised for about $1.1 Million. Prior to coming to us, his business had gotten into trouble and he owed the IRS money. He “sold” the property to his accountant to get quick money and then had an agreement to buy it back at a higher price later down the road. His credit, still dinged up, precluded him from getting any type of conventional financing and the type of property and rural location kept the alternative lenders from doing the loan. Enter our private money fund.
We heard the story. We got proof of almost $500,000 of his own money invested into the property, and we gave him a commitment letter for the $390,000 purchase plus 6 months of escrowed payments plus some cash out. We got him his property back. But really, when you look at it, we did a cash out purchase on a special purpose asset in a tertiary market. That kind of money is hard to find, ESPECIALLY under $1 Million. But our private money fund specializes in small balance deals. We understand that just because a market is small, does not mean successful businesses and properties can not exist there. We will look at ANY asset class and listen to ANY story. If we can believe the exit strategy and are comfortable with the LTV on the asset, we will consider the deal. In this case, we were at a 50% LTV and were comfortable with that.
We are quick, I am the underwriter and my brother is credit committee, and we get the deal to the closing table. What’s your story? What type of tough deal are you working on? It costs nothing to send the deal in and see what we can do. Give me a call today! Commercial Capital, we are the place to go when the banks say no! Call Karen at 512-650-8630 today or get started by filling out this form!