[ZERO UP-FRONT FEES] AT LAST "REVENUE & ASSET BASED LOANS FOR REAL ESTATE INVESTORS" [ZERO DUE DILIGENCE FEES]

CASE STUDY 1

*** $30K REAL ESTATE INVESTOR /FLIPPER

 

BORROWER:                       REAL ESTATE INVESTOR /FLIPPER

GROSS REVENUE:            $12K/MONTH

COLLATERAL:                     2 PROPERTIES IN CONTRACT

USE OF FUNDS:                 ACQUISITION OF 2 FIX AND FLIP REO PROPERTIES

FICO:                                     580 AND 650

NEGATIVES:                       CASH FLOW

POSITIVES:                          EQUITY IN COLLATERAL, CLEAR USE OF PROCEEDS, 2 PARTNERS

REVENUE QUOTE:            $24K (BASED ON $12K GROSS MONTHLY REVENUE)

COLLATERAL QUOTE:      $40K (BASED ON 50% EQUITY)

FINAL LOAN AMOUNT:  $30K

 

NOTES:  The investors went into contract on 2 residential properties.  Because they are in contract on the properties they pledged the target properties.  They purchased bank owned properties for 25 cents on the dollar.  We are making an exception and lending 250% of monthly gross because they were sold by the bank for 25 cents on the dollar.  If they default we own properties worth $120K on a $30K loan.  we also made an exception because there are 2 signors.  The investors also have a short but documented track record of making good deals.  They also made several referrals before we closed.  Their previous hard money lender was charging them 10% per 30 days.

-END-

FINANCING OVERVIEW

We have a fantastic no-out-of-pocket, no monthly payment, and no balloon payment lending platform for ANY business including real estate investors.

 

It also constitutes a powerful additional revenue stream for ISOs, business brokers, real estate wholesalers, realtors, marketers and hard money lenders who send us referrals: 

We pay 1.5% of the loan amount per referral!  Just send us the client’s name and telephone number!

FOR BUSINESSES: Merchant Cash Advances are dead!  You will NEVER take another Merchant Cash Advance again!  MCA companies lend only 20% - 100% of monthly gross – WE LEND 200% OF MONTHLY GROSS!  And our cost is ALWAYS lower!

FOR REAL ESTATE INVESTORS: We can lend you the money TO GET hard money – OR – we can provide “Gap” funding to complete a project when the hard money runs out!

  

BENEFITS:

- NO OUT OF POCKET COSTS!

- NO MONTHLY PAYMENT!

- NO BALLOON PAYMENT!

- NO MERCHANT PROCESSING!

- WE LEND 200% OF MONTHLY INCOME!  UP TO $5MM!  WE GIVE MORE BECAUSE WE ASK FOR TEMPORARY LIENS ON HARD ASSETS (REAL ESTATE, EQUIPMENT, VEHICLES)

- PAY BACK VIA DAILY ACH INSTEAD OF ONE LARGE MONTHLY PAYMENT – NO TAKING MONEY FROM YOUR CREDIT CARD INCOME LIKE MERCHANT CASH ADVANCES! CRITICAL FOR YOUR CASH FLOW!

 

OUR LENDER'S CEO: DOUG NAIDUS, SOLD HIS LAST COMPANY TO DEUTSCHE BANK FOR $500MM!

WE JUST RECEIVED $25MM FROM HEDGE-FUNDS!

 

BOTTOM-LINE:

WE HAVE MORE MONEY THAN ANY OTHER PRIVATE ASSET BASED LENDER, HARD MONEY LENDER OR CASH ADVANCE LENDER!

WE ARE MORE AGGRESSIVE THAN ANY OTHER PRIVATE ASSET BASED LENDER, HARD MONEY LENDER OR CASH ADVANCE LENDER!

WE LOWER THE COST EVERY TIME WE FINANCE YOU!

WE INCREASE THE AMOUNT WE LEND EVERY TIME WE FINANCE YOU!

 

LOAN TERMS: 3 – 12 MONTHS

 

COST*: (NO OUT OF POCKET COSTS, NO MONTHLY PAYMENTS, NO BALLOON PAYMENTS)

3 MONTHS = 12 COTD (CENTS ON THE DOLLAR)

4 MONTHS = 16 COTD

5 MONTHS = 28 COTD

6 MONTHS = 34 COTD

 

*These are base guideline costs that DO NOT take into account credit, years in business, use of proceeds or quantity and quality of collateral pledged.  The higher your FICO, the number of years in business, use of proceeds for growth and the amount of collateral pledged will allow us to lower the cost and increase the loan amount.

 

AGGRESSIVE:

- “GIFT OF REVENUE” – A SEPARATE BUSINESS OR ANOTHER BUSINESS OWNER CAN GIFT A GIFT OF REVENUE BY CO-SIGNING.  WE WILL LEND 200% OF THE COMBINED MONTHLY GROSS REVENUE FOR BOTH COMPANIES!  WE CAN EVEN USE W2 INCOME!

- “GIFT OF ASSETS” – ANY BUSINESS OR PERSON CAN PLEDGE HARD ASSETS ON BEHALF OF THE BORROWER SO WE CAN LEND MORE MONEY!

When pledging real estate: appraisals(s), mortgage statement(s), deed(s), title(s)

When pledging equipment: picture(s), serial number(s)

When pledging vehicles: picture(s) of the vehicle(s), odometer(s), license plate(s) and VIN number(s)

 

AVAILABLE STATES: AL, AZ, DC, DE, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MN, MS, MO, NE, NH, NC, NM, OR, PA, UT, SC, VA, WA, WV, WI, WY. MINIMUM $100K: NJ, GA, CO. MINIMUM $50K: DC, NE, OR. ***IN A FEW MONTHS WE WILL LEND IN ALL 50 STATES!

 

QUALIFY YOURSELF!  ANSWER THESE 3 QUESTIONS TO SEE HOW MUCH WE WILL LEND YOU IN 5 DAYS:

WE ARE REVENUE –AND- ASSET BASED! = MORE MONEY FOR YOU!

 

1 - *** In which States do you operate?

AVAILABLE STATES: AL, AZ, DC, DE, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MN, MS, MO, NE, NH, NC, NM, OR, PA, UT, SC, VA, WA, WV, WI, WY. MINIMUM $100K: NJ, GA, CO. MINIMUM $50K: DC, NE, OR. ***IN A FEW MONTHS WE WILL LEND IN ALL 50 STATES!

 

2 - *** What is the company’s gross monthly or annual revenue?

Formula: AVERAGE GROSS MONTHLY REVENUE  X  2  =  LOAN AMOUNT OR

Formula: ANNUAL GROSS INCOME  X  16.6% = LOAN AMOUNT

 

3 - *** What is the total value AND balances of the company’s hard assets?

(REAL ESTATE, EQUIPMENT, VEHICLES)

 

AGAIN: We will pay you 1.5% for all referrals!

 

THANK YOU!

 

***More case studies*******************************************

*** $3.5MM HOTEL PACKAGE ACQUISITION

 

BORROWER:                       HOTEL DEVELOPER

GROSS REVENUE:            $900K/MONTH

COLLATERAL:                     2 HOTELS

USE OF FUNDS:                 ACQUISITION OF 2 INCOME PRODUCING HOTELS

FICO:                                     750

NEGATIVES:                       CASH FLOW

POSITIVES:                          OK CASH FLOW, CLEAR USE OF PROCEEDS, COLLATERAL

REVENUE QUOTE:            $1.8MMK (BASED ON $900K GROSS MONTHLY REVENUE)

COLLATERAL QUOTE:      $8MM (BASED ON 50% EQUITY)

FINAL QUOTE:                   $3.5MM

 

NOTES:  The developer wants to purchase 2 hotels with a total FMV of $8MM.  Based on his current gross monthly income of $900K we can lend $1.8MM.  We are making an exception by purchasing the hotels and holding a note.  His daily payment is $16.5K, 21 days per month (monthly payment equals $350K).  $350K represent a Payment To Deposit Ratio (PDR)  of 38.8%.  Our typical PDR can not exceed 30%.  The borrower will receive the $3.5MM in seven tranches of $500K each per week over seven weeks.  We are making several exceptions because the target properties are income producing and although his current income exceeds our PDR but he will have immediate additional income which we do not calculate but we anticipate.  If he defaults we own 2 properties worth $8MM on a loan amount of $3.5MM.                                                                                                                                                                                                                                                

-END-

*** $100K REAL ESTATE INVESTOR AND RESTAURATEUR

 

BORROWER:                       RESTAURANT OWNER (2 RESTAURANTS), REAL ESTATE INVESTOR (3 HOUSES)

GROSS REVENUE:            $160K/MONTH

COLLATERAL:                     3 HOUSES, 2 CARS, RESTAURANT EQUIPMENT

USE OF FUNDS:                 EXPANSION

FICO:                                    550

NEGATIVES:                       FICO, FEDERAL TAX LIENS, IN FORECLOSURE ON ONE PROPERTY

POSITIVES:                          GREAT CASH FLOW, CLEAR USE OF PROCEEDS, PLENTY OF COLLATERAL

REVENUE QUOTE:            $320K (BASED ON $160K GROSS MONTHLY REVENUE)

COLLATERAL QUOTE:      $75K (BASED ON 57.5% EQUITY)

FINAL QUOTE:                   $100K

 

NOTES:  This borrower has great revenue but is delinquent on several accounts that have adversely affected their credit.  We will lend up to 200% of monthly gross.  Based on 200% of monthly gross we could lend $320K.  Unfortunately their negatives including 2 vacant investment properties and federal tax liens do not allow us to lend 200% of monthly gross.  Their equipment, aside from ovens and broilers, are not very valuable.  Their real estate is in a rural area and has little value.  Their vehicles are not old but are not new or have significant value.  They are in foreclosure and owe $60K in back mortgage payments.  They received a quote from our competition for $50K.  We are financing them with a $100K facility, paying off the tax lien.  Best term: 6 months, another $50K tranche every 3 months for a total of $300K over 366 days.

-END-

*** $20K MECHANIC

 

BORROWER:                       AUTO MECHANIC

GROSS REVENUE:            $12.5K/MONTH

COLLATERAL:                     5 CARS

USE OF FUNDS:                 EXPANSION

FICO:                                    618

NEGATIVES:                       FICO, CURRENT CASH ADVANCE BALANCE OF $7K

POSITIVES:                          OK CASH FLOW, CLEAR USE OF PROCEEDS, COLLATERAL

REVENUE QUOTE:            $25K (BASED ON $12.5K GROSS MONTHLY REVENUE)

COLLATERAL QUOTE:      $25K (BASED ON 50% EQUITY)

FINAL QUOTE:                   $20K

APPROVAL:                        $20K, NOT PAYING OF THE CURRENT CASH ADVANCE, 9 MONTH TERM

 

NOTES:  This borrower has OK revenue but has a current cash advance.  We will lend up to 200% of monthly gross.  Based on 200% of monthly gross we could lend $25K.  Unfortunately having a cash advance is a red flag so we can not do $25K.  The 5 cars are not very valuable BUT 5 cars makes the underwriter very comfortable.                                                                                                                                                                                                                                              

-END-

*** $50K TRACTOR AND TRUCKING SERVICES

BORROWER:                       TRACTOR AND TRUCKING

GROSS REVENUE:            $100K

COLLATERAL:                     3 VEHICLES, CAMPER, 4 TRAILERS

USE OF FUNDS:                 PAYROLL, MARKETING, INVENTORY

FICO:                                     551

NEGATIVES:                       CREDIT SCORE, MULTIPLE UCCs, UNFAMILIARITY WITH DAILY ACH

POSITIVES:                          REVENUE, COLLATERAL, CASH FLOW      

REVENUE QUOTE:            $200K

COLLATERAL QUOTE:      $100K

FINAL QUOTE:                   $50K

NOTES: The borrower has a low FICO score which is not our main concern but his explanation for his low score is unsatisfactory.  We understand that numbers do not always tell the whole story.  Borrowers incur personal and business challenges that detrimentally affect their personal credit.  But when someone does not pay their bills and will not provide a satisfactory explanation we have to be cautious.  This borrower also has several liens and judgments. 

END

*** $50K REAL ESTATE INVESTOR, CAR DEALERSHIPS, MECHANIC SHOPS

 

BORROWER:                       REAL ESTATE INVESTOR, CAR DEALERSHIPS, MECHANIC SHOPS

GROSS REVENUE:            $50K/MONTH

COLLATERAL:                     SEVERAL CARS

USE OF FUNDS:                 WORKING CAPITAL

FICO:                                     510

NEGATIVES:                       NO REAL ESTATE COLLATERAL, FICO, NO SPOUSAL COSIGNOR, LIENS, JUDGEMENTS, NSFS, PAST AND CURRENT MERCHANT CASH ADVANCES

POSITIVES:                          CASH FLOW

REVENUE QUOTE:            $100K (BASED ON $50K GROSS MONTHLY REVENUE)

COLLATERAL QUOTE:      $23K (BASED ON 50% EQUITY)

FINAL QUOTE:                   $50K

 

NOTES:  The client has real estate but does not want to lien it which is a red flag for the underwriters.  His credit is bad.  His wife is not a cosignor.  He is willing to lien several cars that do not have much value because he sells used cars.  He has several NSFs per month.  He is pledging the vehicles that are critical to his businesses in case of default.  Based on his revenue we want to lend him $100K (based on 200% of monthly gross income).  It is not his FICO that is an issue it is the number of unpaid accounts.  This is a high risk loan.  We are lending him $50K because he is pledging vehicles critical to his business.  If he defaults he will not have the vehicles necessary to operate.  This is a very high risk loan.  The bottom line is he has diversification and collateral which offsets our risk.  Our competition offered him $20K.

-END-

 

 

*** $100K REAL ESTATE INVESTOR AND CEMENT SUPPLIER

 

BORROWER:                       REAL ESTATE INVESTOR AND CEMENT SUPPLIER

GROSS REVENUE:            $40K/MONTH

COLLATERAL:                     1 HOUSE, 1 PARCEL OF LAND, 2 CEMENT TRUCKS

USE OF FUNDS:                 EXPANSION, MARKETING, WORKING CAPITAL

FICO:                                    550

NEGATIVES:                       CURRENT CASH ADVANCE

POSITIVES:                          CLEAR USE OF PROCEEDS, PROVIDED ADDITIONAL REAL ESTATE AS COLLATERAL

REVENUE QUOTE:            $80K (BASED ON $40K GROSS MONTHLY REVENUE)

COLLATERAL QUOTE:      $50K (BASED ON 57.5% EQUITY)

FINAL QUOTE:                   $100K

 

NOTES:  This borrower has phenomenal upward trend in bank deposits.  As a cement company he is taking advantage of the new real estate boom.  One year ago he was doing less than $20K per month.  He pledged his house and two critical vehicles.  The initial offer was for $80K because of the borrower’s credit.  His mother pledged a parcel of land worth $50K.  His mother and father also cosigned which offsets our risk.  His ex-wife did not want to sign off on the real estate but at the last minute signed off.  His credit is bad and he only has a business that has trucks as collateral but the upward trend makes us comfortable and we have put him on a schedule over 366 days to receive an additional $50K+ every 3 months.

-END-

 

 

*** $50K AND $20K HOTEL OWNER

 

BORROWER:                       HOTEL OWNER

GROSS REVENUE:            $80K

COLLATERAL:                     NONE      

USE OF FUNDS:                 MAJOR REHAB

FICO:                                    720

NEGATIVES:                       NO COLLATERAL

POSITIVES:                          FICO, USE OF PROCEEDS, CASH FLOW

REVENUE QUOTE:            $160K

COLLATERAL QUOTE:      NONE

FINAL QUOTE:                   $50K AND 20K

 

NOTES: The borrower owns a discount hotel on a highway across from a brand name hotel.  The borrower has a long term lease on the property and therefore does not have any collateral but owns several trailers but could not provide titles for the vehicles.  Her credit is excellent and her cash flow is excellent.  We gave her $50K because of the lack of collateral and another $20K 60 days later when she pledged the trailers.  We will give her $50K every 6 months for a total of $170K

-END-

 

 

*** $150K Farm

BORROWER:                       FARM

GROSS REVENUE:            $150K

COLLATERAL:                     FARM

USE OF FUNDS:                 EXPANSION

FICO:                                     610

NEGATIVES:                       TWO MORTGAGES, MAXED OUT ON HELOC, OK CREDIT, 25 UCCs

POSITIVES:                          USE OF PROCEEDS, CASH FLOW, DIVERSIFICATION/MULTIPLE REVENUE STREAMS

REVENUE QUOTE:            $300K

COLLATERAL QUOTE:      $150K

FINAL APPROVAL:           $150K

 

NOTES: The borrower has a farm that was established over 60 years ago.  He has many trade lines but has maxed out his HELOC.  He has many UCC liens but he has so much farm equipment that this is an understandable exception.  His credit is OK (610).  Based on his revenue we could do $300K, BUT – because he can not go to a bank or another private lender we have greater risk and his less than perfect FICO is a concern when the facility ($150K) is 10 times the average private financing facility.  He has been seeking financing since January and time is of the essence.  From application to funding only takes 72 hours.  We could give him more and look at all of his varied collateral but he only needs $100K and we are giving him $150K.  We will give him another $75K in 90 days and another $75K or more every 90 days thereafter. -END-

 

 

*** $2.6M Loan Defense Contractor

BORROWER:                       Defense Contractor

GROSS REVENUE:            $150K Monthly

COLLATERAL:                     $10MM Home      

USE OF FUNDS:                 Equipment purchase

FICO:                                     650

NEGATIVES:                       Low Gross Revenue

POSITIVES:                          FICO, USE OF PROCEEDS, COLLATERAL

REVENUE QUOTE:            $300K

COLLATERAL QUOTE:      $10M Home

FINAL QUOTE:                   $2.6MM

NOTES: This file is an anomaly but it illustrates a critical aspect of our lending platform: the more collateral pledged the more we will lend.  This borrower just received a multi-million dollar multi-year contract with the government.  Although his revenue ($150K/month) would qualify him for $300K – we are making very rare exception and lending him 17 times his monthly income because his client is the government, and – he is pledging his residence which is worth $10MM. 

-END-

 

 

*** $85K DENTIST

BORROWER:                       DENTIST

GROSS REVENUE:            $45K Monthly

COLLATERAL:                     HOUSE, CAR, EQUIPMENT, EQUIPMENT      

USE OF FUNDS:                 EQUIPMENT PURCHASE

FICO:                                     500

NEGATIVES:                       CREDIT, HIGH INTEREST DEBT

POSITIVES:                          USE OF PROCEEDS, COLLATERAL

REVENUE QUOTE:            $90K

COLLATERAL QUOTE:      $100K

FINAL QUOTE:                   $85K

NOTES: The borrower has bad credit.  The reason why is because of a very serious medical emergency of a family member.  The borrower documented the medical emergency.  Although we can not ignore his credit, providing documentation of a true medical emergency helps us in terms of comfort.  The dentist wanted to buy a very expensive laser.  It is state-of-the-art and is only made by one manufacturer and has increased other dentist’s revenue by 30%.  In order to offset our risk we are purchasing the equipment for the dentist. 

-END-

 

 

 *** $500K REAL ESTATE INVESTOR

BORROWER:                       REAL ESTATE INVESTOR

GROSS REVENUE:            $583K

COLLATERAL:                     IN CONTRACT ON COMMERCIAL REAL ESTATE        

USE OF FUNDS:                 ACQUISITION

FICO:                                     650

NEGATIVES:                       LESS THAN PERFECT CREDIT, UNFAMILIARITY WITH DAILY ACH

POSITIVES:                          REVENUE, COLLATERAL, CASH FLOW      

REVENUE QUOTE:            $1,166,000

COLLATERAL QUOTE:      $1MM

FINAL QUOTE:                   $500K

NOTES: Borrower is a seasoned real investor with over $7MM in annual gross revenue, a ton of real estate to pledge.  His hard money lender charges 12% over 6 months and 3 points.  We are offering 11% over 6 months with 2 points.  No out of pocket.  We usually do not charge points but because he usually pays 3 he has no objection to paying 2.  We are making an exception from the typical 34 factor rate over 6 months because he is willing to pledge over $1MM in real estate, has a schedule to acquire and flip and hold over 100 properties this year and send dozens of referrals because he is a lender.

-END-

FOR MORE INFORMATION OR TO SUBMIT A LOAN REQUEST.

CONTACT:

Calvin Butler
CEO @1st Choice Financial Inc;

fcfinancial@ymail.com

850-570-6479
http://cloans.webs.com/

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