How we’ve helped our borrowers
Investor has multiple uses for hard money lender
Our borrower was a well-established investment property owner in the Renton area. He decided to use a hard money lender rather than bank financing in order to expedite his loan and bypass all of the paperwork required by his bank.
He came to us for an equity loan on his newly remodeled rental and planned to use the loan funds for three purposes. First, he wanted to finish the remodeling on the rental house and begin receiving income in order to service the new loan. Secondly, he wanted to use some of the funds to purchase a second rental property in the neighborhood and use the remaining proceeds for improving other land he owed. Since he wanted a 50% loan on a free and clear property we had no problem moving quickly to funding.
Private money loan to renovate commercial property leads to increased cash flow
This customer owned almost a full city block of commercial real estate in a small town in central Washington.
Since some of the buildings were in need of updating including electrical and plumbing they were looking for financing to do the work as well as securing some operating capital. They owned a considerable amount of property and were hesitant to pledge the entire piece as security so they asked if we could lien just one building for the loan and leave the remainder unencumbered. After some investigation we were able to determine that one building would be sufficient security and went ahead with closing. This loan turned out to be ideally suited for a direct hard money lender like ourselves wherein loan decisions are based on the individual merits of each loan and not by a set of standard underwriting guidelines. Last we heard our borrower was busy with his remodeling project and was looking forward to a better cash flow that was sure to follow.
Borrower has balloon due and turns to a hard money loan for quick refinance with more favorable terms
Our borrower had a balloon coming due on rental property in the San Juan Islands and needed to move fast.
The client had been shopping the conventional lenders for some time but found it impossible to obtain a commitment. There always seemed to be additional requirements and delays in obtaining approval and the borrower finally gave up and turned to a hard money lender. Since the borrower was only requesting a 50% first position loan on a newer rental property completed only 10 years ago and had a reasonable plan for repayment it was a perfect fit for us. We were able to give our commitment within 24 hours, did a walk-through of the property over the weekend, ordered a title report on Monday and had docs ready for signature by the end of the week. The deal was funded and closed with the balloon payment paid in full prior to the due date.
A hard money loan was the right choice for our borrower in Auburn, Washington
After a frustrating experience with his local community bank, who ultimately turned him down, he decided to turn to a hard money lender.
Our client had a vacant commercial building in need of updating and renovating in order to get it leasable as a professional office and command premium rents. The client already had a complete cost breakdown of the work he intended to have done on the building but preferred not to have the lender monitoring his construction process so that he could go at his own pace. After sitting down with the customer we decided the best approach would be to secure our loan with another rental property owned by the borrower thus allowing him progress with the construction unhampered by our oversight. Since the rental property we were loaning on was paid for we were able to fund his loan quickly and with a minimum of documentation.