HARD MONEY LOANS:
1) $2 million at 13.5% with a 2.73x global DSCR and 70% financing for the acquisition of two new large cranes for a growing business. The issue was because the company had less than two years experience they would not qualify for standard equipment financing. However, cash-flow is very strong with solid contracts in the oil and gas industry and a very strong guarantor with additional businesses and very strong global cash-flow.
2) $600,000 at 13% and a 60% LTV with a 2.73x global DSCR to refinance an existing owner-occupied property with cash-out for business investment. The issue is the cash-out on a completely owned property with a portion of the land not used by the occupant partially developed with pads for future construction of industrial buildings.
3) $2.9 million at 13% with a 64% LTV and 0.90x DSCR today but projected DSCR once construction is completed at 2.5x. This loan funded leasehold improvements for a retail center where the owners had plenty of equity but little cash to fund those leasehold improvements. Already setup for take-out once completed.
4) $2 million with a 63% LTV and a 1.47x DSCR and 1.45x global DSCR even at a rate of 13%. Issue is that it is a discounted note payoff on a combination gas station and retail center.
5) $1.5 million with a 45% LTV and a 2.67x DSCR at a rate of 13%. Issue is that it is a discounted note payoff on an industrial building with large vacancies in the retail portion of the building. The building is also an older industrial building.
6) $17 million with a 61% LTV and well over a 1.4x DSCR at a rate of 12%. This is a very large Church with over $2 million in liquidity and only $4 million in existing debt on almost $30 million in real estate looking to build a new entertainment, educational, and training facility on its very large campus. Issue is it is construction financing. Church needs an 18 month term and has committed to raising an additional $4 million to pay down debt by the time the project is done taking the LTV well under 50% and with $2 million in reserves we have end lenders ready.
7) $5 million with a 65% LTV and a global DSCR of 1.56x at a rate of 13% for the construction of a new hotel. The owner already owns several other hotels that can service the debt, and there is an SBA take-out in place once done. The issue is traditional banks do not want to fund a $5 million construction loan in this market.
8) $1.8 million with a 64% LTV and a DSCR of 2.32x at a rate of 13% to fund the acquisition of an existing Bed & Breakfast. The borrower needs to close quickly and is struggling to get the financing he needs because he is new to the area and because of the property type. However, the borrower has a significant net worth and substantial liquidity, and there is a USDA loan program to take the loan out, but it takes time to get the loan closed.
9) $1.5 million with a 54% LTV and a DSCR of 3.58x at a rate of 14% to fund the acquisition of three gas stations. The buyer has already put $1 million into the acquisition and needs to finance the remaining purchase, which is a discounted purchase off of the Bank. They are currently managing the stations for the Bank and have more than sufficient cash-flow to pay the loan. The issue is that the gas stations are located out of state and they are gas stations in this market with a quick close needed.
10) $700,000 with a 37% LTV and a DSCR of 2.71x at a rate of 11% for the refinance of a retail center. Issue is that the center is located in Michigan and the market is tough and the borrower owes nothing on the center and is looking to cash-out in this market. Needs time to season and once cash is out can get refinanced into a conforming loan (possible the Conforming Private Equity Fund).
11) $800,000 with a 64% LTV and cash-flow above 1x with projections much higher than that and a rate of 12%. The issue is that the borrower could not complete a retail project due to his bank failing and not getting funding. Because of that he lost tenants and the project got stalled. He now has signed up tenants and has worked out a note discount with the Bank, and needs the money to complete the retail center tenant build-outs and to payoff the Bank. The loan also includes as additional collateral an industrial building he owns.
12) $17 million with a 61% LTV but no cash-flow and a rate of 14%. The Borrower is getting a note discount on a large residential development in one of the wealthiest counties per capita in the United States. He already has sufficient lots pre-sold with qualified and health national builders with substantial deposits in place to fully repay this loan, which will cover a discounted note payoff and the remaining development costs for the project.
13) $3.5 million with a 65% LTV, cash-flow of 1.45x and a rate of 12%. The Borrower was getting a discounted note payoff on an apartment building and needed the money to take advantage of that payoff. The property can then be flipped to Fannie Mae six months later.
14) $4.7 million with a 60% LTV / LTC, cash-flow of 1.50x as projected (break-even based on today’s cash-flow), and a rate of 12%. The Borrower is in need of financing to construct a large sports complex. The owner already runs a sports complex he will be moving and expanding into this site, and already has rental agreements with sufficient sports clubs to support the cash-flow projections. There is also an SBA approval in place to take the construction loan out. The issue is construction financing for a large new project in this market.
CONFORMING PRIVATE LOANS:
1) $1.4 million at a 48% LTV with a global cash-flow of 1.35x at a rate of 6.50% to refinance a retail center. The issue is the Banks are not excited about refinancing retail centers in this market.
2) $960,000 at a 60% LTV with a global cash-flow of 1.35x at a rate of 6.50% to refinance a retail center. The issue is the Banks are not excited about refinance retail centers in this market.
3) $920,000 at a 54% LTV with a global cash-flow of 1.35x at a rate of 6.50% to refinance a retail center. The issue is the Banks are not excited about refinance retail centers in this market.
4) $840,000 at a 49% LTV with a global cash-flow of 1.35x at a rate of 6.50% to refinance a retail center. The issue is the Banks are not excited about refinance retail centers in this market.
5) $461,000 at a 34% LTV with a 6.46x global DSCR at a rate of 6.50% to refinance a partially owner-occupied industrial building. The issue is that the Borrower paid cash and is looking to get cash back out after improving the property.
6) $4 million at a 63% LTV with a 1.35x DSCR at a rate of 7% to refinance existing business debt at a discount. The borrower is in a forbearance agreement, and this refinance will cure that forbearance and give them time to show another year of improved financials before getting replacement financing with another lender.
7) $720,000 at a 70% LTV with a 1.45x DSCR at a rate of 6.75% to finance the acquisition of an investment property master-leased to one tenant on a ten-year lease. The borrower lives out of state from the property, so local banks are not interested, out of state banks are not interested, and the deal is too small for national banks.
8) $2.2 million at a 68% LTV with a 1.67x DSCR at a rate of 7% to refinance seller financing and to purchase additional land for an existing combination gas station, apartment building, and hotel. The issue is that the uses don’t meet most of the lender’s expectations.
9) $700,000 at a 52% LTV with a 1.78x DSCR at a rate of 7% to refinance two owner-occupied buildings, one industrial and one office. The issue is that the company has a negative net worth because they are primarily in the intermodal business and have huge equipment depreciation. The banks do not like the large negative net worth, but cash-flow is strong.
10) $1.4 million at a 70% LTV with a 1x DSCR at a rate of 7% to refinance an owner-occupied car wash. The property was purchased at a steep discount, and now the operator wants to take out his private equity partners. The property is producing positive cash-flow, which just started, but the owners global cash-flow is strong, his industry experience is very strong, and he is strong personally.
11) $425,000 at a 65% LTV with a 1.31x global DSCR and a 2.9x DSCR on the specific property at a rate of 6.50% to do a cash-out refinance on an existing mixed-use primarily apartment building. He paid cash to buy and improve the property and Banks are not interested in doing a cash-out refinance in this market.
12) $705,000 at a 56% LTV with a 1.53x DSCR at a rate of 7% to refinance two existing Jiffy Lube locations. Due to market conditions and the fact these are investment properties, traditional lenders are not interested in financing these properties.
13) $935,000 at a 50% LTV with a 1.52x global DSCR and a 7% interest rate to refinance an existing apartment building with cash-out to help fund the construction of a new mixed-use building. Issue is that the borrower is cash poor because they already started construction on the new property and lost their loan approval when their bank got into trouble, so Banks are nervous about lending someone with only real estate equity money, even though she has plenty of equity.
14) $550,000 at a 65% LTV with a 1.52x global DSCR and a rate of 7.50% to finance the construction of a new mixed-use building. Issue is that the borrower is cash poor because they already started construction on the new property and lost their loan approval when their bank got into trouble, so Banks are nervous about lending someone with only real estate equity money, even though she has plenty of equity.
15) $1.95 million at a 51% LTV with a 1.35x DSCR at a rate of 6.50% to refinance an existing retail center. Banks were hesitant to provide the financing because the center was smaller and had a large vacancy, and some maturing leases in the next couple of years.
16) $3.85 million at a 64% LTV with a 2.51x DSCR at a rate of 7% to refinance a very successful large restaurant franchise. The issue is that the property is a restaurant that is less than two years old and lenders were hesitant to put $3.85 million on a restaurant in this market, despite the guarantor strength and the performance of the restaurant.
17) $960,000 at a 65% LTV with a 1.81x global DSCR at a rate of 7.5% to refinance a retail center. The issue is the borrower did not have a lot of liquidity and mainly just real estate equity, and was being pushed out by the lender that took over when his Bank went under and his note was sold.
18) $340,000 at a 65% LTV with a 1.81x global DSCR at a rate of 7.50% to refinance a retail center. The issue is the borrower did not have a lot of liquidity and mainly just real estate equity, and was being pushed out by the lender that took over when his Bank went under and his note was sold.
19) $2.1 million at a 55% LTV with a 1.22x global DSCR at a rate of 6.50% (has one new center not yet leased which is not the subject) to refinance a retail center. Issue is that the borrower’s global cash-flow is only 1.22x, although the subject center’s cash-flow is very strong. The guarantors are also strong with substantial liquidity and outside assets.
20) $750,0000 with a 63% LTV with a 1.5x global DSCR at a rate of 7.50% to refinance a gas station. The center is performing well and the borrower is looking to refinance to get some cash-out to make improvements to the gas station.
21) $380,000 with a 58% LTV with a 1.5x global DSCR at a rate of 7.50% to refinance a gas station. The center is performing well and the borrower is looking to refinance to get some cash-out to make improvements to the gas station.
22) $5 million with a 55% LTV with a 2.40x DSCR at a rate of 6.50% to refinance a retail center. The center has a higher level of vacancy, and some upcoming lease turnover, which is why some traditional lenders did not move forward with the request.
23) $4.6 million with a 69% LTV and a 1.48x DSCR at a rate of 7% to refinance a hotel with cash-out to make improvements and upgrades to the hotel. The hotel has been doing well despite the downturn in the economy and is owned by a very experienced group who manage the property themselves. The issue is that with the downturn in the economy it is hard to get financing for this type of project. However, there were lenders interested in taking out the loan once the construction was completed.
24) $3.5 million at a 50% LTV with a 2.88x DSCR at a rate of 7.5% on an apartment complex. The borrower was looking to refinance the complex and take significant equity out (roughly $3 million). Banks were not interested because of the large cash-out and the fact the subject center had a higher level of vacancy (at about 22%) due to improvements the owner had been making to the property. The guarantors are very strong and the cash-flow is also very strong.
25) $250,000 at a 63% LTV with a 1.4x DSCR at a rate of 8% on an owner-occupied industrial building to take-out a lender that was hassling the borrower. The issue is the Bank misapplied the clients payments on the loan and filed for foreclosure despite the fact he could prove he had paid the loan. They then refused to renew the loan and he needed to move it quickly.
26) $800,000 at a 70% LTV with a 1.69x DSCR at a rate of 7.5% on a partially owner-occupied mixed-use property. The Borrower was looking to take cash-out of their property to improve the property. Lenders were not interested in doing cash-out refinance at 70% LTV, which was required to complete the proposed improvements which would enhance cash-flow.
27) $7 million at a 58% LTV with a 2.18x DSCR at a rate of 7% on a partially owner-occupied retail center. The issue was that the center had some higher level of vacancies and was located in Michigan, which many lenders stayed away from.
28) $1.3 million at a 54% LTV with a 1.61x DSCR at a rate of 8% on an owner-occupied office condominium. The issue was the borrower was looking for cash-out to payoff other debts and to invest into his business. It was all cash he had put into the property.