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Using a Bridge Loan is Best Alternative to Fund a 1031 Exchange

Posted by Chad Mestler on Nov 21, 2017 3:01:37 PM

Using an alternative bridge lender for financing 1031 exchanges often provides the best solution.  This type of financing gives the most certainty for closing on time and is well worth the extra interest and fees that may be charged, when compared with the high taxes that could be incurred otherwise. 

 

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Topics: Advice, Brokers, 1031X

The ONE Killer Loan Product Every Commercial Mortgage Broker Should Have

Posted by Jennifer Foster on Nov 17, 2017 7:48:09 AM

 

Every commercial real estate and mortgage broker needs to have an alternative lender in their arsenal of loan products.  Today, bank underwriting has lost its reasoning: credit and debt service coverage are non-negotiable in loan approvals regardless of equity, liquidity, project viability or borrower networth.  

Here are a bunch of reasons to use an Alternative CRE Lender:

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Topics: Advice, Brokers

HELVETICA FUNDED BRIDGE LOAN | $900K ON LIGHT INDUSTRIAL ASSET IN MESQUITE, TX

Posted by Ben Wilson on Oct 23, 2017 4:28:49 PM
 
MESQUITE, TX - Helvetica was approached by a multi-national brokerage firm in search of another low LTV bridge loan for their client, who Helvetica had financed one year prior. The opportunity to work with with repeat borrowers, and a reputable brokerage firm, gave Helvetica great confidence that the deal would get done. The borrowers owned a muti-tenant industrial property in Mesquite, TX that had an existing note with an upcoming maturity date. The borrowers intend on selling the property but want to get occupancy near 100% before they sell. Through great coordination with the brokerage firm, Helvetica was able to quickly provide the borrowers with a 12 month bridge loan. With Helvetica’s $900,000 loan, the borrowers were able to pay off their existing note right before the maturity date. The owners will now have more time to fully lease up and stabilize the asset in preparation for the sale. Helvetica welcomes the opportunity to work with brokerage firms to assist with their clients' financing needs.
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Topics: Deals, Loans, Brokers, Small Balance

Loans That Match Lender Guidelines = Faster Closings!

Posted by Jennifer Foster on Oct 21, 2017 1:23:45 PM

One of the hardest jobs that a loan broker has is "matchmaking" their client's loan request with the right funding source. Additionally, one of the biggest setbacks to closing loans quickly is having a lender decline a loan, requiring that the process begin again with somoene new.  With these two challenges in mind, you can see how vitally important it is for the broker to understand the client's loan scenario, as well as potential lender's guidelines for approval as early as possible in the process.  

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Topics: Advice, Loans, Brokers

HELVETICA FUNDED LOAN | $1.766MM BRIDGE LOAN ON 3 NNN RETAIL PROPERTIES IN COLUMBUS, OH

Posted by Ben Wilson on Oct 21, 2017 1:21:23 PM
 
COLUMBUS, OH - Helvetica funded another broker originated  $1,766,000 bridge loan to refinance and consolidate maturing debt on three NNN retail buildings with complex title issues The subject collateral consisted of two Burger King restaurants and one two-tenant retail building which featured Sherwin Williams as the anchor tenant. 
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Topics: Deals, Loans, Brokers, NNN, Small Balance

Organization: The Key to Closing Commercial Real Estate Loans Faster!

Posted by Jennifer Foster on Mar 30, 2017 2:56:13 PM

Closing loans quickly can often seem like an unreachable goal.  However, there are some tips and tricks to keep the wheels of the loan machine turning and churning in the right direction, with an end goal of faster closing for your client's loans.  They all center around the basic idea of:

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Topics: Advice, Loans, Brokers

10 QUICK TIPS FOR A FASTER, SUCCESSFUL LOAN CLOSING

Posted by Chad Mestler on Jul 25, 2016 9:37:17 PM

If you are a commercial loan broker or a mortgage broker considering small balance commercial loans, a critical success factor when serving your clients, is certainty in your loan closing.  The ability to provide a reliable quote and a timely closing, should be the primary focus of every loan process.  However, several things get in the way of "certainty."  

These 10 easy tips will move your loan quickly through underwriting and make you a superhero in the eyes of your borrower and lender.

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Topics: Brokers

WHERE IS THE SANITY IN BANK LENDING?

Posted by Chad Mestler on May 28, 2016 4:46:15 PM

ARE BANKS BECOMING THE LENDER OF LAST RESORT?

Even with a great story and tons of equity, banks are declining loan applications because of strict guidelines.  

A few reasons a bank will reject a loan:

  • Borrower doesn't meet credit guidelines
  • Property does not cash flow or meet debt to income requirements
  • Property has high vacancy or is being stabilized
  • Borrower cannot document income
  • Borrower has Insufficient cash reserves
  • Borrower has a recent BK or foreclosure
  • Borrower has insufficient seasoning for cash out
  • Borrower doesn't want a prepayment penalty

Banks are quickly becoming the last choice for borrowers with commercial property.  The difficulty of getting a bank loan is driving many borrowers to alternative loan sources i.e., private money lenders.  And private money lenders are courting these property owners in an effort to gain attractive yields for their investors.  

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Topics: Loans, Brokers