$2. 8 MILLION-PRIVATE MONEY GOLF COURSE DEAL!

Posted by in Brian's Blog, Commercial Real Estate, Recent Closings, Site News, Tip Of The Week

Location: North GA Mountains

CLOSED IN 3 WEEKS WITH OUR OWN In HOUSE PRIVATE MONEY!

This borrower is a repeat borrower who bought a golf course with us last year that I placed with a credit union out of Atlanta.  Banks everywhere had denied it because it was a busted golf course development.  We got it done with great rates and the borrower got an opportunity to buy another busted golf course development in the North GA Mountains.  He felt the property was worth $7 million and he was buying it for $2.8 Million (in actuality, the appraisal came in at $4.2 Million, still-he got a good deal).  The borrowers had great credit and experience and over a million dollars to put into the transaction but the loan had to close in less than 3 weeks this time or he would lose the contract and the $250,000 non-refundable earnest money he had put down.    We found an appraiser to rush the appraisal, got the money lined up, and closed it on the set closing date as requested.

Now, very few private money lenders will do extreme special use properties like golf courses and marinas but we will and have had good success with golf course deals.  We funded this deal at $1.95 Million on his $2.8 million purchase which is a 71% loan to purchase price.  This is actually very high for a private money golf course deal.  Now, we were under 50% of appraised value, but barely.  And the cash flow of the golf course just covered our debt at a 1:1 coverage ratio, further increasing our risk on the deal.

Still, we felt good about the deal because the borrower had already successfully turned a similar course deal around successfully.  He had great credit and was willing to put $1 million of his own money into the deal.  And I knew I could place the exit strategy as I had already funded a golf course deal for this same borrower through a credit union last year.  We look at the nuances of each deal and see if we can make it work.  We WANT to fund deals, that makes us different than banks and credit unions who have fear of regulators on every credit decision.  That fear has banks denying over 50% of their applications…which is where we come in.

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.  If you have been denied or know someone who has been denied by a lender or bank, give me a call.  If we can close you conventionally, we will. But if you need speed, or you have problems that can not allow conventional financing, we also have our OWN private money, that makes us unique in this marketplace.  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 $2.0 million.  And we have lender partners that can close loans up to $50,000,000!  When speed is needed and certainty of funding matters, we are the BEST option available- so call today for a free pre-qualification or to discuss options that may be available to you at 866-355-1244.$