Why do some real estate investors succeed at getting and completing the best deals while others may flounder? The answer is simple - BY USING A RELIABLE HARD MONEY / PRIVATE MONEY SOURCE TO MAKE ALL CASH OFFERS and PROVIDE REHAB MONEY TO COMPLETE PROJECTS. The process starts with a phone call - an investor has found a promising property with upside potential TO FIX AND RESELL. The investor's concern is, because of the lack inventory for such deals, the property may go quickly - and probably with multiple offers. Often, the investor's capital is tied up with other projects and therefore they do not have the liquidity to make an all cash offer and/or fund the construction component of the deal. However with a PRIVATE, HARD MONEY BRIDGE LENDER LIKE EQUITY BRIDGE CAPITAL, their problem MAY BE SOLVED IN FIVE NOT SO EASY, BUT DOABLE STEPS.
HERE'S HOW WE DO IT:
STEP ONE - ASKING BASIC QUESTIONS: What is the address, the asking price, how long has the property been on the market, how much does the Borrower plan to offer, how much do they plan to put down, how much do they want to borrow, when do they plan to close, how long do they need the loan for, what is the extent of work being considered and the estimated cost of construction, what is the timeline for completion, and what is the estimated resale value after completion. As to the BORROWER'S FINANCIAL SITUATION we need to know about their: cash in the bank, sources of income, ability to make payments, credit history, and other real estate holdings they may have. As to their LEVEL OF EXPERIENCE WE WANT TO KNOW: how many projects like this have they done, where and how did they turn out - and who is on their team for this one? ( general contractor, architect, subs, realtor, stager, etc )
STEP TWO: GETTING THE DEAL. Prior to making their offer, the Borrower usually asks us to provide some type of FINANCING LETTER that they can show to the Seller. In this regard, we can write for the Borrower a conditional Letter of Interest that summarizes the approximate terms and cost of the loan ( loan amount, loan position, collateral being used, interest rate, origination fees, closing costs, length of term, interest reserve, etc ). subject to our due diligence which will be done once the Borrower's Offer has been accepted. It is not unusual for a Seller's agent to contact me directly to ask about this process.
STEP THREE: BORROWER AND LENDER DUE DILIGENCE: The Offer has been accepted - now what? At this point, both the Borrower and Lender need to do their due diligence. And it is not uncommon to hear from a borrower that our second "set of eyeballs" looking at the deal often helps them better understand and plan accordingly for some of the risks associated with the project.
STEP FOUR: CLOSING ON THE PURCHASE - Once the due diligence has been completed and we all agree on moving forward, we produce loan documents, the borrower signs, the loan gets funded, and the purchase and loan closes.
STEP FIVE: CONSTRUCTION LOAN COMPONENT - Once the purchase closes, the Borrower will next need to provide the following: approved plans and permits from the City or County, a detailed budget, an agreement with their General Contractor, a finished value appraisal, and a builder's insurance policy Once these items are provided and accepted, we then can fund the construction component for their project.
In summary, the path to success in real estate starts with identifying a buying opportunity and then seizing upon that opportunity. Having the right team in place is fundamental to this process. Equity Bridge Capital has been focused on this niche, successfully helping all types of real estate borrowers, professionals, and investors pursue rare opportunities in the marketplace. We provide 1st and 2nd Position Bridge Loans - from $200,000 to $10,000,000+ throughout Northern California, the San Francisco Bay Area and Southern California
If you are interested in getting more information on Private, Hard Money Bridge Loan options, please contact: Art Gilberg, Broker/Owner at 415-760-2338 or via email: Art@EquityBridge.com , Website: www.EquityBridge.com .. Art Gilberg, Broker/Owner dba Equity Bridge Capital Ca BRE# 01868465