- Point Center has been a reliable private money source for years
- The loan request does not qualify for conventional financing for any reason such as:
- Less than perfect credit;
- Lack of stabilization or seasoning;
- High vacancy / low debt coverage ratio;
- Cash out / low cash reserves; or
- Corss Collateral.
- Borrower needs a short term bridge loan to purchase, refinance, or pull cash out for business purposes.
- Bank liquidity is scarce.
- Point Center's ability to make larger loans with more flexible terms than most banks.
- A percentage of the down payment will be in the form of subordinated seller financing. (Point Center requires a minimum of 20% cash investment in the subject property.)
- Borrower has an opportunity to make an investment in a new property using the liquidity in the real estate he/she owns. Point Center can cross-collateralize both properties.
- Borrower has circumstances which make it difficult to obtain institutional financing, including but not limited to:
- Complex financing structures (LLCs, partnerships, trusts, and corporations);
- Credit problems (minor to moderate);
- Tax liens (Federal and state taxes, estate taxes, etc.);
- Past Bankruptcy;
- Other liens (judgment, Homeowners Association, property tax, etc.);
- Property held in probate, trusts, family limited partnerships, irrevocable trusts, corporations, etc.;
- Divorce, medical emergency, or unemployed.
- Property has characteristics making it difficult to obtain an institutional loan including, but not limited to:
- Property improvements or rehabilitation;
- The property is legal but non-conforming to zoning ordinances;
- The property is newly built and has not reached stabilized occupancy; or
- The property is newly rented and institutional lenders require income to be seasoned for a minimum number of months.
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