Las Vegas, NV
This borrower owned a daycare and saw an opportunity to buy another daycare that she knew was being poorly run. Upon expressing interest to purchase the daycare, the seller agreed to give her the business essentially for free, leaving her to purchase the property for just $750,000. Upon examining her file, things looked great for SBA – we saw she had the experience, good credit (700+), and cash to put down.
Normally, this would be a strong SBA deal. However, she had tried several SBA lenders and they all denied her because she did not have two (2) years of tax returns on her current daycare. (The borrower had just started her daycare in 2020, right before COVID-19 hit. The business not only survived – but her 2021 numbers were great.)
This was a huge issue – SHE DID NOT HAVE TIME TO FILE THE 2021 RETURNS AND CLOSE QUICK ENOUGH FOR THE SELLER. Hence, she needed private money, fast. Enter…our private fund.
Her loan request came in at the beginning of February, and we needed to close by the 25th for the borrower to file for a necessary grant by the deadline of the 28th. This meant that we had three (3) weeks to close.
She had everything you want in a loan – low LTV, great credit, and good cash flow. Once she files her returns, it will be an easy refinance-to-SBA, which we will also facilitate for her (we underwrote the exit strategy beforehand and will help her with the refinance.)
We got all the third party’s approvals back, everything checked out, and were able to close it in the three (3) week timeframe. Now, this borrower is expanding her business, and because our payments are interest only, she can afford the low payments. Realtors win, seller gets what they want and our borrower is happy – and now hard at work building her daycare “empire”.
If you need money fast, and just miss qualifying for SBA or conventional, give us a call at (888)959-1648 or submit your deal through our fast Loan Finder App today.