Every once in a while I like to highlight recent closings so you guys can get a feel for the types of loans that are closing. In general, we are seeing a HUGE demand for commercial loans and business only loans especially start up franchise opportunities. It appears that not all of the people who lost their jobs are going back to work. Instead, many are launching off and starting their own business…franchising is probably the safest avenue for such a thing as you have proven systems that work. Really, you can find a franchise for almost anything you want to do. In the end, at least from my perspective in the day to day commercial and business arena, there is strong demand for borrowing. The money IS available which is generally bullish for continued expansion. Below are just a smattering of recent loans…..
$1.2 Million Start up Wedding Event Facility
Location: Georgia
Strong borrower had a dream of building a barn type wedding facility. It was a purchase and build out of the facility. Although the borrower was strong, and the property was well located, getting a wedding event facility done during Covid when restrictions and lock downs are in place is very tough. But, they funded out last month. All Covid restrictions have now been lifted in GA so when they open they will have clear sailing. Even good loans can have trouble funding if they are the wrong property or business but we have GREAT lending sources that can look at the bigger picture. MOST of our closings got denied somewhere else before coming to us. This borrower got the same SBA rate that they would have gotten at any other bank, even the banks that denied them. With no difference in rate, but a big difference in execution, why would someone not choose us? It is the smart decision….
$600,000 Apartment refinance
Location: California
Borrower had 2 short sales, a foreclosure AND an IRS Tax Lien. Not a very finance able borrower-BUT WE GOT BANK FINANCING FOR HIM! 4.5% interest rate fixed for 5 years with a 30 year amort. HOW? The property appraised at $1.4 Million so they were under 50%. The bank required a banking relationship plus 12 months payments in an account with them and auto debits of the mortgage payment. The tax lien needed to be paid prior to closing of course but for that type of borrower to get fixed rates in the 4’s is tremendous. Again, we are the place to go when the banks say ‘no’, but you DON’T have to sacrifice rate to get the ‘yes’ from us!
$1,250,000 Purchase of Business and Real Estate
Location: FL
Retiring chiropractor selling his business to a young chiropractor. The purchase was $850,000 for the office, $350,000 for the practice and we rolled in $50,000 of working capital. We did the loan at 90% SBA but the lender allowed the seller to carry a 5% second so the borrower actually only came with 5% down. When you consider he was going to get $50,000 back in working capital, the net outlay on this transaction was less than $15,000 for a $1.2 Million deal! WOW! All our SBA loans are done with no points and you get the same rates as the banks so why would anyone go anywhere else?
I will likely do more of these over the next few weeks as we have had a slew of closings with many more about to close. We close more loans in a month than a typical local bank closes in a year. It’s true. When you factor that type of experience, with all these sources, and there is NO additional cost to move forward with us.. it just makes sense to run with us. If you or anyone you know needs a commercial or business loan, whether it is stated, private money or SBA, just give me a call at 512-354-5949 or complete this form to get started.
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