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Investor

HARD MONEY LENDING BUSINESS


THE OPPORTUNITY

 

The lending program is very basic. Make loans in which the “worst case scenario” means the borrower pays as agreed. The ultimate security in each of these loans lies in the verification of adequate equity. It is also important for the lender to focus on loans that will be the easiest to collect, either through payments or foreclosure, avoid highly regulated RESPA transactions or avoid loans that are subject to government foreclosure intervention and “headline risk”. Borrowers include investors taking advantage of deep discounts on real estate or mortgages being offered today and willing to make substantial cash down payments. Other borrowers include property owners who are either taking advantage of discounted payoffs or are pulling out equity for other opportunist investments.

THE EXAMPLES OF THE DIFFERENT OPPORTUNITIES

Case studies:

Lauderhill Office


 Loan terms

  • $500,000 first mortgage
  • 2 years interest only
  • Rate 12%

Collateral

  • 50,000 sqft class “B-” office building- Oakland Park frontage
  • Paid cash and owned free and clear
  • Converting back to rental from condo (non-fractured)
  • Use of funds to stabilize building and ready for sale/refi
  • Present value $1m
  • Stabilized value $2.75m

Flagler Retail


 Loan terms

  • $400,000 first mortgage
  • 3 years interest only
  • Rate 12% floating

Collateral

  • 5,000 sqft class “C+” retail building- Flagler frontage
  • Owned free and clear
  • Spousal buyout from divorce
  • Present value $850k

Coconut Grove SFR


 Loan terms

  • $400,000 first mortgage
  • 3 years interest only
  • Rate 12% floating

Collateral

  • 5,000 sqft class “C+” retail building- Flagler frontage
  • Owned free and clear
  • Spousal buyout from divorce
  • Present value $850k

Palm Beach Warehouse


 Loan terms

  • $400,000 first mortgage
  • 3 years interest only
  • Rate 12% floating

Collateral

  • 18,000sqft owner occupied warehouse plus adjacent vacant lot
  • Balloon note due
  • Present value $800k
  • Stabilized value $1m

229 Unit Apartment building


Loan terms

  • $2,000,000 first mortgage
  • 2 years interest only
  • Rate 10.5%

Collateral

  • 229 class “B” apartment building
  • $4m purchase from Fannie Mae (REO)
  • Borrower escrowed additional $1m for repairs
  • Present value $4.2m
  • Stabilized Value $7.5m

Miami Lakes Office


 Loan terms

  • $422,500 first mortgage
  • 3 years interest only
  • Rate 10%

Collateral

  • 6,000sqft class “A” office well located in Miami Lakes
  • Purchase Price $650k
  • Stabilized value $800k

Miami Bay front bulk condo


 Loan terms

  • $3m first mortgage
  • 2 years interest only
  • Rate 11%

Collateral

  • 41 of 45 luxury condo units
  • Purchase Price $6.5k
  • Resale value $8.5m
  • Borrower escrowed $1.2m for repairs, marketing and interest

High end Condos


 Loan terms

  • $200,000 first mortgage
  • 2 years interest only
  • Rate 12.5%

Collateral

  • 3/3 Condo-1,800 sqft
  • $465k purchase
  • Investment
  • Present value $400k

Miami Beach Oceanfront Hotel site


 Loan terms

  • $3.2m first mortgage
  • 2 years interest only
  • Rate 12%

Collateral

  • 55,000 sqft site on Collins –direct oceanfront
  • Appraised $15m

Class “A” Miami Lakes office building


 Loan terms

  • $473.5k first mortgage
  • 3 years interest only
  • Rate 8.75%

Collateral

  • New 6,000 sqft office
  • Purchase price $675,000-short sale
  • Appraised $1.1m

Pompano Intracoastal


 Loan terms

  • $500k first mortgage
  • 2 years interest only
  • Rate 12%

Collateral

  • Commercial land direct Intracoastal
  • Purchase price/Value $1.5m

Normandy Isles Waterfront Townhouse project


 Loan terms

  • $1.5m first mortgage
  • 2 years interest only
  • Rate 12%

Collateral

  • Total 22k sqft under air
  • Total appraised value $3.5m

Four Seasons Condo


 Loan terms

  • $1.3 first mortgage
  • 3 years interest only
  • Rate 8.75%

Collateral

  • Three 2/2.5 condo units
  • One Studio
  • Total appraised value $3.8m