Considering a hard money loan? Hard money loans, or private loans, get a bad wrap. But there are genuinely appropriate lending scenarios when a hard money loan is the best option. Take a look at the following hard-money lending situations and borrower profiles. These are just some of the critical times when a hard money loan can save the day and the deal:
Read moreHow to Compete with Cash Buyers
Competing with cash buyers? Consider a bridge loan for the win.
Over the past 18-24 months, we’ve closed dozens of bridge loans.
Many of our clients are pulling cash out of their existing homes to buy new homes. In order to compete with cash buyers, we will cross-collateralize our loan to fund enough so that the homebuyer is effectively paying cash for the new home.
This allows the buyer to close within 10-14 days (the same as a cash buyer) with no financing contingencies. This could be huge for many of your clients.
A recent client success story:
As an example of a recent transaction, our borrower owned a home in Saratoga. The home is worth $4.5M, they owe about $500k. The home they were buying was on the market for $3.9M, also in Saratoga. They did have some cash to put down but wanted to keep some as reserves and some for the improvements they want to make to the new home.
We funded a $3.8M loan secured by a first mortgage against the new home and a second against the existing home. They will do some improvements before moving into the new home. Likewise, once they’ve moved, they will do some clean-up and painting prior to staging and placing the existing home on the market.
The freedom of a bridge loan.
This bridge-loan home buying scenario provides borrowers with:
- the freedom to work within their own timeline
- the ability to compete with “all-cash” buyers
- the option to avoid jumping through the mountains of paperwork that conventional lenders require.
If you would like to close your transaction within a few days without all of the hassles conventional lenders require, please give us a chance to show you just how seamless and easy we can make this process.
Sheldon Perry,
Founder, VP Investment Lending
Excel Trust Deed Investments
Sheldon founded Excel Trust Deed Investments (formerly Excel Financial) in 1986. Specializing in expedited and efficient loan closings, he applies creative problem-solving skills to every facet of the private lending process for his clients.
The Beauty and Benefits of Bridge Loans
For the last two to three years, we’ve been getting a lot of requests from agents for bridge loans. Here’s why:
The typical scenario is that an owner wants to sell their house and downsize by purchasing a property that better meets their needs. They have equity but not a lot of savings to compete with the many “all cash buyers” out there these days.
We work with the owners, and once they identify the area and dollar range they’re looking for, we formulate a “battle plan” for them to make a competitive offer. Most go in and offer what is essentially an all-cash offer with a 2-3 week close.
Once their offer is accepted, which is more likely to happen with parameters like this, we instruct the escrow company for the home they’re buying to open an escrow on the home they already own. We then provide a loan to purchase the new home and cover all closing costs.
Depending on the scenario, we may just secure this loan with the property being sold (if the LTV is low enough) but in some cases, we may cross-collateralize the loan with the property being purchased. Once the old home is sold they pay off our loan. If the sales price of the old home isn’t enough to cover the payoff the referring broker will provide permanent financing.
Bridge loans have been a very successful and hot product with many benefits to the homeowner:
- It allows the owner to compete with all-cash buyers.
- It allows them to move into the new home at their own pace.
- It allows them to make any repairs or improvements to the old home to better position it on the open market.
Most importantly, in this current economic environment, their old home continues to increase in value over the course of the time they take that, more often than not, covers the expense of our loan.
We just had a new spin on the bridge loan program.
We had a business owner in San Jose, CA who runs their business out of their home. They were at a point of growth where they wanted to buy a building for their business. They had enough equity in their present home to cover the cost of the building they are buying.
We provided the business owner/buyer with a $1,350,000.00 loan secured by both properties. They were able to compete with all-cash buyers and closed in 10 days. The referring broker will be able to secure a permanent 30-year fixed loan within the next year, and they will be able to grow their business to cover their expected growth over the next several years.
So consider a bridge loan, and if you have a borrower that needs to close FAST, please give us a call.
In many cases, Excel Trust Deed Investments is able to close loans up to $5,000,000.00 within two weeks with receipt of a complete package, verification of all material facts, and investor approval. Excel Trust Deed Investments has been in the private lending industry since 1986 and can help you through each stage of the lending process.
Sheldon Perry,
Founder, VP Investment Lending
Excel Trust Deed Investments
Sheldon founded Excel Trust Deed Investments (formerly Excel Financial) in 1986. Specializing in expedited and efficient loan closings, he applies creative problem-solving skills to every facet of the private lending process for his clients.
A Unique Lending Opportunity
We need borrowers.
At the end of 2017, we received several large loan payoffs. Add this to our backlog of investors with funds to invest and we’ve found ourselves in a unique position with a unique private lending opportunity- we need loans.
Why you should consider private lending with Excel TDI, Inc.
Over the past three years Excel TDI, Inc. has established itself as one of the leading private lenders in the San Francisco Bay Area. We can fund many loans that our rivals simply cannot. We approve most loans by the end of our first discussion with our brokers, pending receipt of the loan package. We do not take days of your time to make life-changing decisions, but moments whenever possible. Our lending limits are much more generous than traditional lenders as our investors are able to choose their own lending parameters (within lending regulations.)
If, as an agent, you are being strung along through a never-ending approval process or your clients are being turned down by other lenders, please take a moment and call Excel TDI or email us. Give us a chance to close your loan. Over the last several years, in many cases, we’ve had loan docs in escrow within 24 hours. We have hundreds of closed loan success stories to share. Let us add your client to our growing list.
Call +1 (408) 564 7690 or contact us at loans@exceltdi.com
Excel TDI, Inc. Closes $2.5 M Bridge Loans in 7 Days
Excel Trust Deed Investments (formerly Excel Financial) is quickly becoming the Bay Area’s bridge loan leader. Just last week we closed a $2.5MM 1st bridge loan in Atherton. We began the process with a bare-bones file. We were ON RECORD 10 days from the day we got the call from the broker.
The borrower found a home outside of the Bay Area and was set to retire. Because of the impending retirement, their income has been reduced and therefore couldn’t qualify for a conventional loan. We provided them enough cash out to pay cash for their dream home and cover the cost of the move. The Atherton home will be cleaned up, staged and listed for sale. Once sold they’ll pay off our loan and pocket the difference.
Many brokers are running into scenarios similar to this and have no idea where to turn. They end up advising the seller to sell the home and wait to buy the new home. With an appraisal, prelim, basic financial info and a solid exit strategy we’ve been able to help dozens of Bay Area home Realtors and Brokers get their listings sold and keep their clients satisfied.
In addition to bridge loans, we’re able to close business-purpose loans self-employed borrowers) with multiple needs, equity loans for any purpose and debt consolidation loans.
Since we’re a private lender our loans are based on equity more than credit or job history.
If your client cannot qualify with an institutional lender, please give me a call. We’ve closed hundreds of tough loans over the past 32 years.
Excel TDI, Inc. – Your Leading Private Lender in SF Bay Area
Good morning!
We have a good problem to report! Over the past few weeks we’ve received several large payoffs…add this to our backlog of investors with funds to place and we’ve found ourselves in a unique position. We need loans.
Over the past 3 years we’ve established ourselves as one of the leading private lenders in the San Francisco Bay Area. We can fund many loans that our rivals simply cannot. We approve most loans by the end of our first discussion with our brokers, pending receipt of the loan package. We do not take days of your time to make life changing decisions, but moments whenever possible. Our lending limits are much more generous as investors choose their own parameters (within lending regulations.) If you are being strung along or your clients are being turned down by other lenders, please take a moment and call me or email me and give me a chance to close your loan. In many cases over the last several years we’ve had loan docs in escrow within 24 hours. We have hundreds of closed loan success stories…let us add your client to our growing list.
Warm Regards,
Sheldon