$3.35 Million Purchase and mild renovation of Golf Course and Land!

Posted by in Brian's Blog, Commercial Real Estate, Recent Closings

Location: North GA Mountains

This loan first came to us in early February looking for a private money loan.  We liked the deal so much, we were going to issue a commitment on the loan from our private money fund when I told them that I could get the deal done conventionally for them if they had time.  The borrowers had great credit and experience and over a million dollars to put into the transaction.  The golf course actually MADE a net income of over $300,000 so the golf course alone was worth the $3 Million price at a 10 cap but the kicker was the clients also got all the lots around the golf course-like free land that they could develop-it was a very solid deal.  When I told them I could get them conventional they told me that many banks had denied the loan but I KNEW I could get them done.

I took the loan in and immediately called local banks in the North GA mountains and none of them would touch the deal because the developer had gone under and they saw it as a failed development-despite the fact that the Golf Course cash flow supported the loan all by itself.  I noticed that the borrower had almost $1 Million with a local bank in GA and I knew the VP’s at that bank and discovered that the client had already applied there and been denied because they did not want to take a chance on a golf course 75 miles away-DESPITE ALMOST A MILLION DOLLARS ON DEPOSIT AT THAT BANK.  I knew conduits and life companies were not going to be interested in a golf course/development deal but I found a credit union willing to do the deal.  I packaged it, submitted it, talked it through underwriting and got the approval.  A 5 year fixed at 4.95% on a 25 year amortization at 65% LTV and NO pre-payment penalty.  They came to me desperate looking for Private Money close to 10% and I got them fixed under 5%!  The loan closed in less than 2 months start to finish!

ALMOST EVERY LOAN I CLOSE GOT DENIED SOMEWHERE ELSE BEFORE COMING TO ME and yet usually, I can get them approved at the same rates they were hoping to get at the place that denied them.  The big banks are denying 80% of their loans and the local banks are denying 50% yet many of those deals are STRONG deals.  They just don’t have the right lender.

If you have been denied or know someone who has been denied by a lender or bank, give me a call. We close 80% of the term sheets we issue so your chance of success is MUCH greater with us and usually, the rate is the same or better.  Just one call does it all at 866-355-1244.  Be blessed!

Brian

P.S.  Don’t forget about our PRIVATE MONEY LOANS:

Sometimes loans can NOT get done conventionally or through SBA.  Whether it is because they have to close in 2 weeks or the credit is horrible or some other factor, sometimes no bank will touch a loan.  In those cases, private money may be an option.  We have our OWN private money and we have a lot of money to lend.  I underwrite the deals and my brother is credit committee and if we both like it, we will issue a commitment and close the loan as long as appraisal and title come in fine.  We WILL accept bank ordered appraisals if they are recently done and in those cases, we can close lightning quick, we actually closed a loan once in 5 days!  Although 3 weeks is more the norm.  We will do loans as small as $100,000 and as large as $1.5 million.  And we have lender partners that can close loans up to $50,000,000!  When speed is needed and certainty of funding matters, we are the BEST option available- so call today for a free pre-qualification or to discuss options that may be available to you at 866-355-1244.