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1.Same Day Service, Apartment Building $1,000,000.
2.Flexibility to go behind other lenders, Apartment Building $800,000.
3.Special Bankruptcy Opportunities, Commercial land $6,000,000.
4.Fleeting "Flipping" Opportunities, Church/school building $2,000,000.
5.Last Minute Legal Maneuvers, Commercial land $500,000.
6.Loans for Construction Purposes, Apartment building $2,000,000.
 

 
Equity Funding Example Loans

1.Same Day Service, Apartment Building $1,000,000.

Timing is everything. At about 9:00 one morning, a borrower contacted us about an opportunity that required a little over $1,000,000. that day. We were able to review the property, prepare loan documents and fund the loan by 3:30 that afternoon. While that is rushed, even for us, we do our best to meet our clients' needs.

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2. Flexibility to go behind other lenders, Apartment Building $800,000.

Real estate transactions come in many shapes and sizes and it is often necessary to be flexible. A client had spent many months posturing a transaction, which involved the purchase of a large apartment complex. The client only needed about $800,000 to complete the transaction but our security position would need to be subordinate to more than $17,000,000 of existing debt. Not an enviable position, but we felt that our client was getting an excellent property that would more than support the loan as well as any problems that might occur. We funded and the client has since sold the project at a substantial profit.

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3. Special Bankruptcy Opportunities, Commercial land $6,000,000.

A party with the right to buy a parcel of down-town property suitable for office development filed for bankruptcy. The seller sought to void the sale for nonperformance. Our client wished to purchase the property, but needed to be in a position to tell the court that financing was available for an immediate closing if approval was going to be granted. The hearing was 10 days away and the amount required exceeded $6,000,000. The court granted approval to go ahead, provided closing occurred in a matter of days. We were able to fund the entire purchase price and closed on time, utilizing the property being purchased, and some additional property as collateral.

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4. Fleeting "Flipping" Opportunities, Church/school building $2,000,000.


The borrower in this example had entered into one agreement to purchase a property and another to sell the property at a substantial profit. The problem was that their buyer was not in a position to close by the date required by the first agreement and, since the owner of the property was aware of the second sale, there was no way the deadline would be extended. The borrower needed over $2,000,000 in less than a week. Equity Funding made the loan and a few months later our borrower sold the property, realizing the gain that had been anticipated.

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5. Last Minute Legal Maneuvers, Commercial land $500,000.

Sometimes our borrowers wait until the last minute to get us involved. In this case, the borrower contacted us one afternoon with a problem. A real estate contract on which they were purchasing a large commercial property was subject to a court forfeiture hearing the next morning. Defenses to the action had been exhausted and the only realistic way to prevent forfeiture was to come up with the more than $500,000 required to pay the contract in full by the time of the hearing. By 10:00 the next morning, we had determined that the property was sufficient to collateralize the loan, had drawn loan documents, and placed funds in escrow. The borrower was then able to tender full payment at the hearing thereby preventing an order of forfeiture.

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6. Loans for Construction Purposes, Apartment building $2,000,000.


Borrowers often come to us for construction loans, and we can help, as long as there is enough existing equity in their collateral. In this case, a party had more than sufficient equity to justify a $2,000,000 plus loan for various improvements to the property. While we were willing to fund the loan on the date of closing, our borrower, in order to keep interest costs down, wanted to draw the loan down over time. We set up a procedure to accomplish this objective and made the loan. 

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