Church and Non-Profit Lending
Churches and Non-Profits often have a difficult time securing traditional lending due to a lack of consistent cash flow or a huge revenue stream. We’re able to lend on equity – even creatively – and can easily service these types of loans.
The property securing this loan was a former funeral home on a lovely street in the Bay Area. A local church purchased the building and turned it into a perfect church. Not only were we able to finance the loan on the equity in the building, we were able to turn it around quickly so that the pastor and congregation could move directly into their new spiritual home.
Mixed-use Money Saver
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.
Investment Property Equity Lending Saves the Day
While most institutional lenders balk at anything involving construction, we are able to creatively assess an entire property portfolio and work to solve problems – even mid-construction.
This construction loan was for a single family home, (investment property), being built with the client’s own money. It was halfway completed when the money ran out, and the owners were stuck. Not only did they have a construction project a big lender wouldn’t touch, they had a halfway-built house just sitting there with contractors and vendors waiting. Even if they could secure a traditional loan, the time it would take to close it would be disastrous.
They had no cash, but plenty of equity in another completed property. We were able to lend them the money they needed to finish the construction using the equity in the second property as security. With our ability to make decisions in-house after looking at the entire picture (and not hampered by the hoops a loan serviced through an institutional lender must jump through), we’re able to lend in challenging situations.
Fastest Loans in the West – A 1031 Exchange That Turns on a Dime
Since we don’t have to go through the kinds of committees and review processes that hinder big lenders who frequently take weeks or months to make a decision, we can get information from the borrowers, make decisions quickly, and fund their loans.
Our client on this loan was doing a 1031 exchange on a 4-unit building that had to close in less than 2 weeks. There was a lot of money riding on this deal, and if the client didn’t meet the fixed time deadline, the client would have had serious tax problems causing the client to either lose the deal or a large sum of money.
We got it done in plenty of time, even closing escrow within 10 days!
Quick and Creative Estate Distribution Lending
Our flexibility and speed allow us to tackle creative lending situations where an institutional lender would be stymied. This property was a 4-unit building that was part of an estate with several other properties, but not a lot of liquidity. The due date on the estate was fast approaching, and the trustees were confronted with distributing the assets of the property-heavy estate without enough cash to make it equitable.
Roza Real Estate Loans stepped in and structured a 2-year loan to allow the trustees to provide a cash distribution in addition to the property distribution. This allowed them the flexibility to even things out, get the numbers right, and enable the court to release the estate. The trustees were able to use the loan to work out the distributions to be of equal value, and we were able to lend on the equity in the property, close it quickly easily meeting the court deadline.