$4,523,400 Construction Loan to Build a New Restaurant!

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

Location: Dallas, TX

Borrower had been with another bank on an SBA loan to build out a new restaurant to move their existing restaurant into.  The demographics at their current location were getting worse and their income and sales were declining.  They had a lot under contract in the perfect location and were supposed to close on an SBA construction loan.  But the bank could not come through and canceled the loan at the final hour due to declining income and profits.  Not wanting to lose the location, which was perfect for their business, they got a hard money loan to close on the land.  After multiple banks denied them for the same reason, declining income, they came to us.

We packaged the deal and really played up the new location and helped them craft an excellent business plan.  The borrowers also had great credit and cash reserves of a couple of hundred thousand, so we felt the deal had enough strength to close.  We took it to an aggressive west coast bank and got the approval at $3.5 Million to pay off the private money loan and get the money for the buildout.  Of course, when they were done getting all the plans and specs, they needed an extra million to finish building it out.  All of a sudden, it was a $4.5 million ground up construction loan for a restaurant with declining revenues-a pretty tough deal.  But we fought for it and got the approval through credit committee.  The loan closed last week.  We can do SBA construction loans on both the SBA 7A program and the 504 program up to 90%!  The borrowers were ecstatic.  The ground is being cleared now and in 4-6 months, they will be opening in the great new location!

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!


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.