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Need a Bridge Loan? All 50 States- Commercial & Residential

This came in Thursday july 9, 2009 from Brian, a bridge lender. Bridge loans are short term loans normally a year in length though some can be extended to two years for an additional fee.

He wrote this material. I have not edited it.

Hello,

My name is Brian O’Shxxxxxxx and I am private investor that has a healthy appetite for Bridge loans. I am on the constant look out to deploy my personal capital, the capital of my family trust, and the capital of my fund (The Rxxx Fund) in to short term and low LTV loans on commercial income producing and n/o/o 2-4 unit residential properties.

I will lend in all 50 states and I am quick and efficient. So if you have a borrower that is in need of a bridge loan please make me your first choice. Stop dealing with large firms that have many layers of management between you and your answer. Why don’t you just deal directly with the guy who is actually going to fund your loan…..ME!

Also during this current lending climate, when so many people are representing them self’s as lenders and all they are, are pretenders, it is commonly asked of me to prove that I am a direct lender. This is a very fair question! So upon request I will deliver a recent list of fundings with property addresses so you can pull up my recorded deed of trust or mortgages and see that I am actually a direct lender! Below are some guidelines of what I do lend on and don’t lend on.

Properties I love for my fund or my own portfolio:

Multi family-5+units

Mixed use

Office

Warehouse

Light industrial

Groups of n/o/o condos

n/o/o 2-4 units

Rehabs loans for multifamily.

Properties I will consider:

Retail

Mobile home parks

Motel and Hotels flagged and non flagged-in conjunction with a capital partner

Gas Stations branded and non branded–in conjunction with a capital partner

Properties I will NOT lend on:

Land

Land

Land

And yes Land

O/O SFR

Development

Construction

Golf courses-yes even if its Tiger Woods personal course.

Marinas

Water treatment plants

Fish Farms

Coal deposits

Oil refineries

Geo thermal power plants

Nuclear power plants

Clean green alternative fuel power plants

Cruise ships

Disney Land-yes even if Mickey is going to personally guarantee it.

LTVs:

Up to 65% on really good deals.

Loan amounts

In house-up to 1 to 2 million and as low as 25K.

In conjunction with capital partners-50 million

Lien position:

1st only

Brian

Recently Closed Loans:

$216,000 1st Mortgage on a Owner/User retail building in Tacomoa, WA.

  • Borrower was ready to refinance the property and payoff some Corperate debt at the same time. We were able to get him the financing needed to get this job done.

$100,000 1st Mortgage on a mixed use 2 unit building in San Leandro, CA.

  • We were able to close this loan without an Appraisal.

$150,000 1st Mortgage on 9 Units in Portland, OR.

  • Property had a lot of differed maintenance but the LTV was good. We were able to close this loan with NO up front fee’s and NO Appraisal.

$325,000 1st Mortgage on 9 Condos in Palm Beach, Florida.

  • “Wild Deal” – This scenario started out completely different compared to the reality of where it wound up. That being said, we stuck it out and brought liquidity to these borrowers and we were able to get the deal closed.

$242.5K 1st Mortgage on a 5 Unit building in Huntington Park, CA.

  • 12.99% for 24 Months.
  • From the issuance of the LOI, to funding of the loan. This deal only took 2 weeks. Yes, ONLY 2 weeks. How is that for turn time?

$200K 1st Mortgage on a Office/Warehouse in Grand Ledge, MI.
Yes.. we said Michigan!

  • 13.9% 30 Due in 24 Months.
  • Borrowers lost 1.8 Million in business last year but had a decent plan to turn things around. The LTV was low and the property was in good condition. We made the deal work and got the deal closed.

$760K 1st Mortgage on a “Non” Branded Gas Station in Sacramento, CA.

  • 12.9% 30 Due in 18 Months.
  • SBA wont give you cash out? Take a Bridge Loan to get that cash out then let us take the Borrower to SBA financing after our Bridge Loan? You get the cash and the SBA Loan.

$600K 1st Mortgage secured by 2 condos on Ohau, Hawaii.

  • This was such a complex deal because of Hawaii law, one of the condos was unfinished and the project had a very complex ownership. Despite all the challenges Athas Capital Group was able to serve up a competitive Bridge Loan from our in house portfolio product. The terms were 11.99% for 24 months, No PrePay, Lender withhold for completion and a partial interest reserve.

In today’s environment the key to sound financial growth is through investment diversification. With the ever changing markets there is a real need and high demand for solid investments with yields that far exceed traditional depository and or CD’s yields. The Stock Market is and always has been a fluctuating vehicle and only those that have the where with all, knowledge, and for the most part time to spend serious energy on statistical and market trend analysis can achieve success.

However, even the most experienced investor is playing a game and risks the potential loss that can occur for may variables outside of their control. So how do you find an investment vehicle that provides a monthly return at a high yield? Certainly no depository, CD, or Bond can provide that yield you seek. The Stock Market can result in high yields but the risk is again tremendous. The happy medium lies in high yield with minimal risk. Investing in mortgage backed assets is a valuable way to increase your yield and realize little risk as in the majority of the options any risk is spread very broad across an entire pool of individual Mortgages or Trust Deeds.

Private Lenders offer this opportunity at varying levels of yield and associated risk detailed below. For a more in depth explanation of this opportunity please contact one of our friendly and informative Investment Counselors.

Isolated Fund

Individual Trust Deed investments

9%-12%+ Investor Yields

• Minimum Investment of $150K
• Direct Ownership of the Mortgage or Trust Deed.
• Low Loan to Property Value (LTV) Mortgages or Trust Deeds 40-65% LTV.
• The Loan is sold with servicing retained by ACG.
• Investor participation in the Prepayment Privilege (if any).
• Pro’s: Some investors insist on owning the individual investment and in this case you can.
• Con’s: Individual loans are a stand alone investment. The Performance of your payment stream is dictated by the one loan. That being said, in ACG’s investment of fractional ownership the risk is spread over the entire multiple investors. Holding multiple loans will minimize the impact of any defaults or slow pays that may occur.

JUMBO BRIDGE PRODUCT

LENDING PARAMETERS OVERVIEW:

Interest Rates: 9.99% ‐14.99%

Amortization: Interest Only

LTV: Up to 80% on income producing properties

CLTV: Up to 85% on income producing properties

Origination Fee: 3 ‐5% taken at closing from the loan proceeds

Loan Terms: 12 to 36 Months

Closing Times: 3 to 4 Weeks

Loan Size: $2,000,000 to $50,000,000 +

Credit: 600+ FICO

Subordinate Financing: Allowed.  Max CLTV is 85%

Cash Down: Minimum 15% down or equity in the property

Collateral types we ARElooking for:

Multi Family Complexes: Up to 80% LTV

Multi Family Rehab: Must be 50% Occupied  (ltv case‐by‐case)

Mixed‐Use Up to 80% LTV

Lite Industrial: Up to 80% LTV

Apartment Buildings: Up to 80% LTV

Warehouses: Up to 80% LTV

Office Buildings: Up to 80% LTV

Hotels: Flagged and a 3 Star rating up to 65% LTV

Grocery Anchored Retail: Up to 80% LTV

Student Housing: Up to 80%

Parking Garages: Up to 80%

Collateral types we areNOTlooking for:

Land, Land,Land, Land Gas Stations

Owner Occupied Properties  ThemeWater Parks

“White Elephants” (very large vacant facilities) Golf Courses

Hospitals Daycare Centers

Casinos Marinas

Assisted Living Heavy Industrial Facilities

Ground up Construction

When fees are mentioned these are the Lender’s Fees. In addition you will be paying a commission to Cash Flow Specialists, Inc. On hard Money and Bridge loans we ordinarily earn 4 points although our commissions are negotiable. Our fee agreement delineates our compensation.

Some choose to hire us for consultation: visit www.joetufo.com/consulting for more information.

One reply on “Need a Bridge Loan? All 50 States- Commercial & Residential”

We have access to hundreds of funding sources. This is an example of one Bridge Lender and what he will and will not do.

Whatever your scenario: send a one pager to me at joe@joetufo.com if you do not hear back from me pick up the phone and call me at 1-800-669-2700 M-F 7AM to 5PM Pacific. In business since July 1, 1999 my team and I are here to serve you and those whom you choose to refer.

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