A dentist who wanted to start her own dental practice signed our commitment letter on July 11th and had a drop-dead closing date of July 22nd — giving us only ten days to close.
To be ready for business, the building needed interior remodeling, which required permits, plans and specs. Those necessities were going to take a few months to obtain, and the SBA lender could not close until a building permit was submitted. Things were looking grim as the seller was not willing to extend and had other backup offers, but the property was perfect for this dentist and she didn’t want to lose it.
With such a tight turnaround, we turned to our private fund to get this one done. Since the borrower was strong and had an SBA takeout, we were able to provide up to 90% LTV. We did a small four (4) month pre-pay penalty so she could refinance out once she obtained all the permits.
When we receive a fast loan request for a special-use property or a new property with no cash flow, we send the deal to our $20 million private fund for consideration. To accommodate for the risk, we simply adjust the LTV. We have gone as high as 90% for strong borrowers with SBA takeout and as low as 25% for challenges such as rural vacant land. If you have a deal that has good collateral but requires a keen business sense to see the potential (and especially if it needs to close quickly,) send us a quick inquiry through Loan Finder or give us a call at (888) 959-1648.