Since we’re an Equity Lender, we look at more than just a credit score and income tax returns to determine whether or not we can lend to you. Since we primarily lend on the equity in your property, we look first at your assets. We review your credit history and your other financial information, but the equity rules the day.
This loan was on a lovely Italian-style mixed-use building housing a hotel and restaurant. When you’re running a hotel, you often take all of your available deductions to keep your tax burden low, so your returns may barely show a profit. We’re able to look at the property, the investor, and the equity to determine if we can lend.
In this case, we also saved our client $25,000 in financial penalties by closing the escrow right before New Year’s Day. It was a happy new year for our client. Since the people you’re speaking with in our office are the people who make the decisions on your loans, we could help even when the big, institutional lenders were closed.