Frames Lose Your Deals!
As a lender, there is nothing more stressful than trying to hit a closing date knowing that if you don’t hit it, the deal is gone as the seller refuses to budge. Now sometimes, this is just a bluff by the Realtor, but many times it is legitimate. To work your tail off and get the loan approved and then to lose it because you can not hit the closing date because key people were out for Covid, vacations, or just everyone being backed up. Sometimes it is the third parties that are delaying it, sometimes it is the fact that you can not close until you get a permit for the interior build, and a number of things can delay. But if the seller is legit and you truly are going to lose the deal if it does not close and you absolutely can not make it happen-WHAT DO YOU DO?
Enter, Our Private Money Fund. We are a group of investors who will lend money out quickly to close those loans EVEN UP TO 90%. We will use the same attorneys, title searches, and appraisals you have ordered and just bring the money to the table to close. We recently did this for a Division of Citizens First and it SAVED the deal for both the borrower AND the lender. You see, they can, even on an SBA loan, pay off a high-cost interest loan so we closed the purchase, and then the SBA Lender is refinancing us once they get the permits. Here is the story….
The borrower is a dentist buying a building in FL for her practice. A good loan, an SBA Lender had the commitment letter but they could not close until the permits were issued for the interior build-out that was needed to make it a dental office. As you know, this is a process. Architect renderings, bid the construction cost out, apply for the permit, and make any corrections they want. This process, even for interior builds ONLY can take 4-6 months depending on the state. But the seller had a backup offer and refused to extend the contract, the client was going to lose big-time earnest money and the lender was going to lose the deal they had worked two (2) months on. So the broker called on us. We got the call on July 11th, it had to close on July 22nd. We had ten (10) days. We issued commitment within a day, got the title, appraisal, etc. all the organizational docs, and had the loan cleared and the package delivered to the title company on July 21 for the 22nd closing. The borrower got the property and is making monthly interest-only payments until they get their permit. The lender is just waiting on the permit to close. EVERYBODY WINS.
The lender still gets a good dentist loan, the borrower gets the property, and the payment, because it is interest only, is affordable. We keep our pre-pay very short so that the borrower can refinance to their lender as soon as possible. Everyone wins. IF YOU ARE A LENDER AND YOU ARE ABOUT TO LOSE A DEAL BECAUSE OF A DROP-DEAD TIMELINE YOU CAN NOT HIT, GIVE ME A CALL. We may be able to step in, close that loan and let you refinance it out when you are ready…and everyone will be happy.
Call Karen at 512-358-1511 today or get started by filling out this form!
Karen Schimpf
(512)-359-358-1511
karenschimpf at gmail.com
Give me a CALL TODAY at 512-358-1511 or get started by filling out this form!