[TedFundy]

We have a client that owes about 100k to Swift paying 1200 per day for the next 4 months or so. Been paying this MCA for 3 months now with no default. He won't survive another week or so. Monthly sales equal about 120k. He has a house (homestead) in Texas worth about 500k that he only owes 40k on. I am not familiar with the laws in Texas but from what I am reading and hearing, it is impossible to do home equity loans in this state.

Any advice?

Zack is that you?

[nrh1lp]

Definitely looks like a WBL deal to me

[TedFundy]

Update- Credit is south of 600

[omegafund]

owner occupied homestead in TExas. No private lender will do it. Get his fico up a little and take him to local mortgage co to get a loan

[TedFundy]

owner occupied homestead in TExas. No private lender will do it. Get his fico up a little and take him to local mortgage co to get a loan

No private lender will do it or CAN* do it?

[Zach]

We have a client that owes about 100k to Swift paying 1200 per day for the next 4 months or so. Been paying this MCA for 3 months now with no default. He won't survive another week or so. Monthly sales equal about 120k. He has a house (homestead) in Texas worth about 500k that he only owes 40k on. I am not familiar with the laws in Texas but from what I am reading and hearing, it is impossible to do home equity loans in this state.

Any advice?

Zack is that you?

Hahaha! Thank you for the shout out! Unfortunately, utilizing a primary residence in Texas is problematic. The Homestead Exemption Act makes it extremely difficult to collect in the event of a default.

Does he happen to own a commercial property, or perhaps an SFR/investment property?

Also, what industry is he in? There are a few advance companies that do 100% payoff, which might allow this borrower to extend his term and lower the PDR of his daily payment.

[TedFundy]

Hahaha! Thank you for the shout out! Unfortunately, utilizing a primary residence in Texas is problematic. The Homestead Exemption Act makes it extremely difficult to collect in the event of a default.

Does he happen to own a commercial property, or perhaps an SFR/investment property?

Also, what industry is he in? There are a few advance companies that do 100% payoff, which might allow this borrower to extend his term and lower the PDR of his daily payment.

He does not own anything but this house which is pretty useless at this point. It puts a roof over his head but he won't get a penny out of it until he sells it. Pretty ridiculous laws in Texas.

[Zach]

He does not own anything but this house which is pretty useless at this point. It puts a roof over his head but he won't get a penny out of it until he sells it. Pretty ridiculous laws in Texas.

It's unfortunate how those laws can impact a borrower's ability to access capital. It sounds like a perfect WBL deal except for the Homestead situation. Sorry man.

[AdvanceFund]

We have a client that owes about 100k to Swift paying 1200 per day for the next 4 months or so. Been paying this MCA for 3 months now with no default. He won't survive another week or so. Monthly sales equal about 120k. He has a house (homestead) in Texas worth about 500k that he only owes 40k on. I am not familiar with the laws in Texas but from what I am reading and hearing, it is impossible to do home equity loans in this state.

Any advice?

Zack is that you?

How much is merchant looking for and what terms?