News & Deals

Private Money Is Sexy Again: The Rise in Importance Amid Credit Tightening, Bank Liquidity Crisis, and Securitization Market Shutdown

In the wake of recent economic challenges, the landscape of finance has witnessed a dramatic shift. With the tightening of credit, a bank liquidity crisis, and the shutdown of securitization markets, private money has reemerged as a compelling and enticing alternative. In this article, we delve into the factors contributing to the renewed allure of private money and the implications it holds for the financial ecosystem.

Topics: Fix and Flip, Loans, Brokers, NNN, 1031X, Alternative Financing, Bridge lending, Bad Credit, Credit Challenge

When applying for a commercial real estate loan, there are several reasons why the loan may be rejected. Here are the top 10 reasons why a commercial real estate loan may be denied:

1. Insufficient credit history or low credit score: Lenders will typically check the credit history of the borrower and co-borrowers, and a low credit score can be a red flag.

2. Lack of experience or insufficient assets: Lenders will also look at the borrower's experience in the real estate industry and their assets. If the borrower does not have enough experience or assets, the loan may be denied.

Topics: Loans, Brokers, 1031X, Alternative Financing, Bridge lending, Bridge Loan, fast closing, CRE, Insights

When applying for a commercial real estate loan, it's important to make sure that you have all the necessary information to present to the lender. A well-prepared loan submission can increase your chances of being approved, and can make the process go more smoothly. Here are the top 10 things you should include in a commercial real estate loan submission to a lender:

Topics: Loans, Brokers, 1031X, Bridge lending, Bridge Loan, CRE, Insights

Big banks like to drag their feet. Especially with most banks still working remotely, it can be a struggle to get a loan on time. This has been a huge struggle when trying to meet your 1031 deadline. This is where a reliable bridge lender comes into play. 

Topics: Brokers, NNN, 1031X, Alternative Financing, Bridge lending, Bridge Loan, Quick Close, CRE

 

 

VARIOUS LOCATIONS, TX -  Helvetica Group worked with broker Marcus & Millichap to provide purchase financing for the acquisition of a 3 store, Dollar General NNN portfolio. This bridge loan helped their client meet a 1031 exchange, hard closing date and avoid a large tax liability.  The loan was for 12 months and did not have a prepayment penalty. 

 

Despite some temporary credit challenges, Helvetica was able to fund this loan in the middle of the COVID pandemic while banks and institutions were temporarily closed to new funding. 

 

 

Topics: Deals, Loans, Brokers, 1031X

Vacant buildings have become a common issue in today's economy and an all too familiar reason for loan declines by traditional banks. Whether it be a multi-unit, a strip mall, apartment complex, or a property with a former big-box store attached, when buildings do not have full occupancy, they are just harder to finance.

Vacant properties can also be linked to higher crime rates such as squatting, theft, and arson. When you are the owner of said buildings you don't want to be stuck in a spot where you watch your property decrease in value and lose money in the process, all because you can't obtain financing needed to get new tenants.

Why not consider a bridge loan?

Unlike a traditional loan, a bridge loan can step in immediately, bridging the gap between vacancies and fully occupied time frames!

Topics: Rehab, Brokers, Investing, Alternative Financing, Low Occupancy Property, Bridge lending, Bridge Loan, Insights

 

 

SAN FRANCISCO, CA - The Helvetica Group, originated a cash out loan for a recently completed construction of a new multifamily property that was rented with short-term, AirBnb tenants. The borrower was previously turned down by 3 banks.  Helvetica worked with a broker to source a three-year, fixed-rate loan at 5.35%.  The borrower was given an interest-only option for the first two years to help with early cash flow and to support a strategy to sell the property within 3 years. The loan was underwritten using higher AirBnb rents and with limited seasoning.

 

The complex nature of the multi-family property being used for AirBnB rentals, the need for a quick close, and limited seasoning prevented this borrower from obtaining a bank loan.  

Topics: Deals, Loans, Brokers

 

 

PACIFIC GROVE, CA - The Helvetica Group, originated a cash out loan secured by mixed collateral including real estate and chattel to enable the borrower to pay for tenant improvements required for a new lease.   The collateral included a lien on the ownership interests in a newly renovated building in Pacific Grove that was adapted from an old iconic department store known as the Holman Building, to new luxury ocean view condos.  The loan was also secured by ownership interests in an industrial building located in Oakland, CA across from the Colosseum.  In addition, the loan was secured by a junior trust deed on an office building in San Diego, CA.  

 

The complex nature of the mixed collateral, the need for a quick close, the lack of income documentation and vacancy, prevented this borrower from obtaining a bank loan.  

Topics: Deals, Loans, Brokers

 

 

BALTIMORE, MD  - Jaden Jeter with The Helvetica Group, originated a refinance loan secured by an office building in downtown Baltimore, MD just one short block from the courthouse. The borrower will use the loan to pay off current debt and provide a bridge to a construction loan to re-purpose the building as mixed use, including retail, hospitality, and office. High vacancy, short term leases, and time constraints prevented the borrower from obtaining a bank loan.

Topics: Deals, Loans, Brokers

 

 

SAN DIEGO, CA   - Helvetica funded a $3,380,000 purchase loan secured by an office building in San Diego, CA.   The property was occupied by a licensed cannabis dispensary.   The borrower was a multi-state cannabis operator soon to be listed on the Canadian Stock Exchange.  A complicated corporate structure, large net losses, and cannabis dispensary use prevented this borrower from obtaining bank financing.  

Topics: Deals, Loans, Brokers