[premierecapitalfunding]

Who does assets based funding in MCA industry? Except WBL
Preferably accepting land as a collateral
Construction (flooring), 20+ years in business, 3.5Ml annual gross sales, 2 Ml in collateral. Looking for 0.8-1 Mln
Thank you!

[Kevin Henry-Seacoast]

Who does assets based funding in MCA industry? Except WBL
Preferably accepting land as a collateral
Construction (flooring), 20+ years in business, 3.5Ml annual gross sales, 2 Ml in collateral. Looking for 0.8-1 Mln
Thank you!

I just closed a deal for a flooring business. We did a factoring deal using AR and Inventory as collateral. Kevin.Henry@SeacoastBF.com

[Zach]

Who does assets based funding in MCA industry? Except WBL
Preferably accepting land as a collateral
Construction (flooring), 20+ years in business, 3.5Ml annual gross sales, 2 Ml in collateral. Looking for 0.8-1 Mln
Thank you!

Utilizing land as collateral is rare, although there are some private institutions who can facilitate that sort of transaction. I recommend trying to find private investors who will do it, if the borrower isn't comfortable with WBL's product line.

[Zach]

Utilizing land as collateral is rare, although there are some private institutions who can facilitate that sort of transaction. I recommend trying to find private investors who will do it, if the borrower isn't comfortable with WBL's product line.

Of course, since they are construction, their AR and equipment might be better avenues to traverse for this deal.

[omegafund]

Who does assets based funding in MCA industry? Except WBL
Preferably accepting land as a collateral
Construction (flooring), 20+ years in business, 3.5Ml annual gross sales, 2 Ml in collateral. Looking for 0.8-1 Mln
Thank you!

What is the collateral? Not all assets are equal

[Kevin Henry-Seacoast]

I just closed a deal for a flooring business. We did a factoring deal using AR and Inventory as collateral. Kevin.Henry@SeacoastBF.com

Are they installing flooring or are they manufacturing/distributing flooring????

[RichardGerard]

If it doesn't fit into Kevin's box I suggest giving Sean @ Liftforward a call.. They like to attach to Real Estate as a second trustee.. If they like the business and collateral they can get you up to $1M.. The rates will be infinitely more affordable than an advance

[Davincinc]

I PMd their link from lift forward to him. Or search Sean Najieb

[MCABroker]

Liftforward doesn't do construction, even with collateral.

[Jstarr]

Hard money lenders or " Private Lenders " dont have any interest in financing or collateralizing land because for two reasons,

1) the valuations are inflated both by the appraiser and Borrower.
2) if the deal goes south the probability of selling the land is considerably less -VS- if it had a structure on it, and most of the time when someone borrows against land they walk away from the deal. Trust me when i tell you we have about 35 Ac that we can't give away for 50% ltv, Nobody wants it.

On a side note for the brokers that are receiving Real Estate requests, you really need to understand the deal and what the borrower has and what they are expecting.

We will lend on almost anything if it makes sense and you just need to ask some simple questions

Refinance / or cash out

1) tell me about the property and do you have a mortgage on it, if so what is the balance ? and are you current ?
( is it a SFR, Multi Family, Commercial, Industrial, Warehouse, Mixed use etc.. )
2) What is it worth and how did you come to this conclusion?
3) Do you own any other real estate other than raw land? if so we need a REO list. and balances.
4) What rates and points are you expecting, (this isn't conventional financing so 4% and 2 points won't work)
5) We are asset based not credit driven but we need to know if they have any open BK's


Purchase

It's basically the same as above but if they are just getting into real estate investing the rates and points will be higher.

and please dont bring me a "Clown Deal" that is a deal where the buyer is looking to purchase a $2M property and they have $10,000 down. or someone that brings me a SFR transaction that's a purchase for $80k and they need $300k for rehab... these types of emails or calls won't be returned.

If you want to get into asset based lending i would be happy to fund almost anything that makes sense, if you dont know what to ask call me first and i will be glad to help.

[bdshaw]

premiere capital funding:
As far as I know there is no one on this forum that will use raw land as collateral other than Jerry at JStar.
Asset Based Lending (ABL) generally applies to personal assets as opposed to real assets (real estate).
I can't imagine your client having any significant inventory but how about accounts receivable and paid for equipment?

Bob Shaw
rshaw@ironhiorsecredit.com
734-929-3800

[I_Fund_Deals]

(Please excuse any grammatical errors, posting from my phone)

Hello Everyone,

Although I am new to this forum, I have 10+ years experience in ABL and specialized in Construction Deals. Land aside, what portion of the revenue is overstated? In construction, it is few and far between where the contractor provides 100% of the work in house and pays cash for the materials (COD). With that said, via Mechanic Lien Laws, Id estimate the gross revenues should be discounted at least 20% - 30% for materials alone. If the contractor is acting as a General Contractor and Sub-contracting the work out, revenues should be discounted an additional 20% - 30%. Lastly, retention receivables are often removed or discounted 75% where looking at their assets.

Raw Land is a tough one too. The question is, where is the land located? Downtown, Commercial, Residential. Is it permitted? Can it be added to city services (water/power)?

If the account pencils out, Id be interested in the deal. Send me a PM if you want to discuss it further.


-Robby