What’s Closing Now!

Close Commercial Loan Fast!

One loan came to me last week, needing to close by month-end, the borrower was a super-strong borrower but banks would not be able to get him closed in time.  We are going to get him done by month-end with private money.  Although this guy has never paid private money before, he is accepting 12% and 5 points and signed on and is going to get closed.

Remember, he can refinance away soon after the private money closing. 12% a year is 1% a month.  IF he refinances in 3 months he only pays 3% interest.  Obviously, the value of what he is buying is far greater then the 3% he is going to pay.  Oftentimes the borrowers will have large due diligence money at stake and being past the due diligence period, that money is lost if they don’t close on time.  There are many reasons why it may actually be a very smart move to go private money.

Do people love the rate? No.  But when the alternative is worse, it makes absolute sense.

– Loan Amounts $250,000 to $20 Million and up

– Rates can start as Low as 8.5% interest only and just 2.5 points

– Real Private money-Fast Closings – Real estate based

– Story matters

– No strings on cash out

– Derogatory credit needs explanation

– Collateral and exit strategy is most important

Give me a call today to discuss your deal at 512-358-1511