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  1. #1
    Senior Member Reputation points: 66298 Olderguy's Avatar
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    9 positions, $1.25M

    Broker/lender called about his client that was over extended and wondered if I could do anything for him.

    He owned a country store in Hawaii that was encumbered by three mortgage loans and also had 6 MCA's - claimed his primary residence on the right angle street was free and clear for a hard money loan.

    Upon doing some analysis, I was able to determine that all the loans were on the store but the lot was actually the two addresses, with two structures and thus loans were encumbered by both structures.

    None of my lenders would touch it as there wouldn't be any "comps" or comparable sales of like properties on the island.

    I got a hold of a broker on the island and had him look up the assessments - he found each was assessed separately for a total of $2.2M. That suggests $2.5M - $2.75 valuation wasn't out of the question. Thus we could be looking at a 50% Loan to Value loan.

    I submitted that assessment information to one of my lenders a second time and got an approval for $1.34M at 10.5% Interest Only for 24 months.

    New monthly payment would be $11,725
    9 loan payments were costing him $119,682 a month.

    Saving him $108,000 a month in payments.

    There are options....just have to ask questions....do they have any property?

    Ordered appraisal and we hope we can do this one. Hoping the cost analysis valuation on the appraisal will pass underwriting if comps don't

    Oh, if it funds we get 3 points which I split with broker.
    Last edited by Olderguy; 03-30-2022 at 08:40 PM.
    Steve Benjamin
    Professional Business Loans

    1012 Contessa
    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    Broker, Underwriter, general business loan expert
    949.228.1050


    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

  2. #2
    So you’re telling us about a preapproval…

  3. #3
    Senior Member Reputation points: 19024
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    I too once pre-approved a merchant

  4. #4
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    I cant speak to the facts but in the mortgage world a pre-approval is almost certainly going to close.
    Marcus Clapman
    Capybara Capital
    marcus@capybarausa.com
    www.capybarausa.com
    646-708-5986 (Text Friendly!)

  5. #5
    Senior Member Reputation points: 66298 Olderguy's Avatar
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    ...there was a pre approval and they requested some documents - wanted confirmation all the loans for the business....- got them copies of all the loan contracts - and then an approval. Appraisal order, and opening title and escrow.
    Last edited by Olderguy; 06-24-2022 at 12:07 PM.
    Steve Benjamin
    Professional Business Loans

    1012 Contessa
    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    Broker, Underwriter, general business loan expert
    949.228.1050


    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

  6. #6
    this is gold

  7. #7
    Senior Member Reputation points: 66298 Olderguy's Avatar
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    Sep 2021
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    Irvine, CA
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    Signed loan docs today for $1.2M....will provide details when it funds in a week. Tough one with issues we overcame.
    Steve Benjamin
    Professional Business Loans

    1012 Contessa
    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    Broker, Underwriter, general business loan expert
    949.228.1050


    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

  8. #8
    Quote Originally Posted by Olderguy View Post
    Signed loan docs today for $1.2M....will provide details when it funds in a week. Tough one with issues we overcame.
    Hi Steve. Is this deal already funded? If yes, can you provide some details of this deal? Like the total time frame to close the deal, what kind of docs are required, etc.
    Thanks.

  9. #9
    Senior Member Reputation points: 66298 Olderguy's Avatar
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    Quote Originally Posted by Americanbizfunding View Post
    Hi Steve. Is this deal already funded? If yes, can you provide some details of this deal? Like the total time frame to close the deal, what kind of docs are required, etc.
    Thanks.
    Yes it got funded as a "NoDoc" loan. Just need a 1003, credit and a doc order form to get into processing. Loan Approval was from basic loan app and credit report. Most of my lenders turned it down due to comparable issue - it was mixed use on an island. Had one lender do it but was limited to 55% LTV. When appraisal came in a bit low, they would NOT raise the LTV to keep the same loan amount. Since there were so many MCA loans, getting pay offs was a bit of a challenge. And title found out ex wife had a lien which we had to have attorney resolve....I got them to accept $20K and personal note for the remaing amount. They filed a UCC after this loan closed.

    Took 4 months - biggest issue was took 60 days to get the appraisal and borrower paid expedite fee. Also lender required septic inspection and water inspection.

    https://dailyfunder.com/showthread.p...ighlight=steve

    Buttonwillow 11-13, me, my bike and my truck.jpg
    Last edited by Olderguy; 09-16-2022 at 04:49 PM.
    Steve Benjamin
    Professional Business Loans

    1012 Contessa
    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    Broker, Underwriter, general business loan expert
    949.228.1050


    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

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