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• Sale of existing promissory notes and deeds of trust to thirdparty investors: The sale is usually at a discount, whether the promissory note is performing or nonperforming. A deal will free up cash.
• Hypothecation or pledge of a promissory note and deed of trust: A borrower who owns a promissory note and deed will assign them to a thirdparty investor as collateral for a new loan.
• Crosscollateralization of more than one property:
• Crosscollateralize multiple properties that are used to meet lender equity requirements. The borrower would sign one promissory note but have recorded liens that encumber two or more properties.
• Small mobile homes or trailer parks: properties that don’ t meet the underwriting standards of institutional lenders.
• Airbnbtype rental income properties: Financials and history are necessary to prove the ability to make payments.
• New groundup construction or construction completion for a partially completed project: Most requests result from borrowers needing to fund more money to complete the task when their capital or existing construction loan proceeds are depleted.
• Collateral combines real and
personal property with mini markets, such as a motel, restaurant, carwash, or gas station. The valuation and the decision to make the loan must be based on the real property only. A trust deed is recorded to encumber the real property, and a UCC1 financing statement will be filed with the Secretary of State to encumber the personal property.
• A longterm lease on commercial property has or is expected to expire soon. The lease expiration could cause a vacancy and a disruption in rental income. If the master tenant vacates the property, this will disrupt
25 other smaller inline tenants because the master tenant is responsible for the primary draw of foot traffic to the center. Banks will usually not make this loan. This loan is generally a bridge loan until the owner obtains a longterm lease with a creditworthy tenant and manages the center back into stabilization.
• Credit approval is subject to highly sophisticated lease analyses, with multiple tenants having different lease terms, including length, lease rate, and lease provisions. Some tenants are on longterm leases, and some are on monthtomonth tenancies. Lease documents may include godark provisions for the anchor tenant or provide for lease cancellation in the event of excess vacancy or loss of an anchor tenant.
• Some properties require mutual property access easements for ingress / egress or complex usage rights, such as reciprocal parking agreements. Many properties, such as churches and retail shopping centers, sign contracts with multiple property owners to use the entry / exit of the property or the parking in specific ways or at certain times.
• Foreign nationals with and without a Social Security number need loans. The borrower must have a US bank account( s). The borrower must have a process agent service arranged during loan processing.
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