Success Stories with Aggressive Lending Programs
Below are a few of the deals that were thought to be unfinanceable…But we got them done!
Million Dollar Laundromat Acquisition That Was Losing Money!
Loan Type: Start Up Business
Using our extensive knowledge of Advanced Credit Analysis, we were able to uncover the true cash flow value of this business in order for a lender to approve it. We were able to recast their expenses and capitalize them. This allowed us to amortize them over a ten year period which greatly improved the cash flow of the business. We also had to line up a lender who could do an equipment-only loan of that magnitude. The terms we were able to secure were a 10 year 5.75% Rate on Equipment Only.
After-Market Car Accessories Store Purchase of Building $800K... Multiple Banks and the SBA Turned it Down...
Loan Type: Commercial Real Estate
This business was losing money in 2012. Another challenge was this store does a lot of cash sales which is hard to prove. We had to do extensive underwriting to determine true cash-flow for the 2012 loss and also document all the cash sales before any lender would truly be serious about financing the property. The car stereo store owner wanted to buy the building because it would basically cut his rent payment in half with the collection of the rents from the other tenants. This was a savings of over $30,000 per year he could keep in his pocket if we could get it done for him! We were able to secure 65% LTV and the use of a seller note of 10%. 30 year Amortization, 3 year fixed, and his rate was 8.49%.
Purchase of Chiropractic Practice - This Business Had a Negative $200K Net Worth...
Loan Type: Commercial Hard Money
The buyer had been working at this practice for the past year. The seller’s wife was diagnosed with Cancer and wanted to sell. The borrower had a negative $200,000 net worth due to student loans, 694 credit score, and did not own a home. The wife worked outside the practice. The total project cost was $179,500. We were able to secure a bank loan for $143,500 with a $36,000 equity injection from the buyer. The rate was 6% variable for 10 years!
Liquor Store Purchase - Only Open 2 Years...
Loan Type: SBA Loans
Liquor Store Purchase (buying out the other 50% partner) which was a relative and they had two different ideas of how to run the business. The business had only been open two years. We were able to use the money he had originally put into the business as the equity. The buyer did not own a home. We were able to secure a bank loan for $150,000 with an interest rate of 6% variable for 10 years.