Our Borrower’s Success Stories
Spec builder turns to hard money lender after running out of construction funds
Our borrower intended to finish using his own funds but ran short and needed to get the structure closed in before winter.
With the house unfinished our client knew that conventional lenders were likely to drag their feet on financing and turned to us. In addition, he planned to do all the work himself and wanted to take his time, another reason a bank loan would be a problem. We worked out with the borrower a simple two stage construction disbursement schedule that fit his needs. He is now well on his way to closing in the house and will be able to work on the interior throughout the winter at his own pace.
Customer needed a hard money loan on a commercial building
Our client purchased the building with an adjoining rental house five years ago and spent over $100,000 updating and renovating the property. Even with the substantial remodeling the main structure was too old for conventional lenders and the borrower turned to private money to generate the short term capital they needed.
Their plan was to sell the real estate within two years and pay off our loan but in the meantime they needed to pay off some accumulated debt and make some final updates. Since it was clear to us during our inspection that a considerable amount of updating had gone into the property we were able to forgo an appraisal. Our first lien loan was well secured and we knew the borrower had a reasonable exit strategy to pay off the loan. Funding for this hard money loan took 10 business days from the initial contact without requiring financial statements and tax returns normally required by traditional lenders.
A Private Money Loan Was Just What The Doctor Ordered
Our client had inherited a rental property along with a mortgage on the property that needed to be paid off.
The customer was self-employed and his financial statement and tax returns were not quite up to speed for conventional lenders. A hard money loan looked like the best solution. The rental property was in great condition and our research of comparable properties in the area confirmed that we would be able to loan him enough to pay off the existing mortgage plus obtain cash out to pay off some bills and credit cards. The borrower was not interested in a short term interest only loan with a balloon payment so we structured a fully amortizing loan that called for principal and interest payments that would pay the loan off in 16 years. By paying off his bills our borrower freed up enough cash flow to easily make the new monthly payment and in addition he was able to pay off the bank mortgage.
Idaho Client Needed Equity Cash Out Loan For Business Startup
Our borrower had the opportunity to launch a startup magazine and was looking for capital.
The loan request was a good fit for us since the borrower not only owned an unencumbered rental house in northern Idaho but had over 10 years of experience in the publishing business. It didn’t hurt that this client had worked with us before on prior financing and already knew that a hard money loan looks primarily at the real estate security in deciding to make the loan. We were able to obtain a title report, do some quick checking on current market values and close the loan within 10 days.
Hard Money Lender Needed to Cash Out Co-Owner
Our Idaho borrower owned a 50% interest in a rental property with a partner. The partner wanted to be cashed out and was pushing our borrower to put the property on the market. Our client reluctantly agreed to list the property since he was unable to find conventional financing to cash out his partner. He was self-employed and the banks wouldn’t talk to him. Fortunately for him he contacted us. He needed to come up with a loan for 50% of the value of the property. Since the real estate was free and clear we were able to move quickly and secure a loan with terms that worked for him. He now owns 100% of the property and plans to generate good long-term rental income.
Hard Money Loan to Rehab Rental Property
Our borrower came to us with a residential rental property in need of serious updating. It had been built in the 1970s and still had the 70s look throughout. Wanting to optimize his rental income immediately as well as possibly putting the property up for sale at a later date he knew that a major remodeling made good business sense. He came to us because his credit rating was not up to conventional bank standards and to make things worse he was self-employed which can make it even more difficult to obtain traditional financing. This loan was essentially a slam dunk for us. Although the property needed some TLC it was structurally sound and best of all it was paid for. We are able to make him a loan of 50% of the value of the property without looking closely at his credit rating and were able to close his loan quickly. This was a win-win situation for everyone.