Bail Out Funding: Short Term Bridge Equity Financing
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By Tod Snodgrass
Are you working on any deals in need of shortterm financing? We are happy to pay for referrals!
Joint Venture Funding Amounts:
$ 25,000 $ 500,000 Term: Six Months or less Security: 1st Position or equivalent
A. A partial list of potential scenarios we will consider funding includes:
1. Preforeclosures
2. Tax delinquencies
3. Properties in probate
4. Divorce
5. Liens
6. Clouded title
2. There needs to be a substantial amount of equity and / or profit in the deal for the REI Pro
3. The principal must have already worked out their exit strategy
4. Our normal markup is 50 percent(%). Thus, if we provide $ 50,000, we receive $ 75,000($ 50,000 + $ 25,000) in return. The markup can go higher if the deal involves more risk.
C. We pay a 2 % referral fee with full account protection to loan professionals.
D. Here are some examples of deals we are prepared to fund, where we are dealing a REI Pro i. e. the“ principal”:
1. The principal had a small amount due on their rental property mortgage. Some of the units were in disrepair which meant they could not find good renters or charge market rates. They needed funds to upgrade the property. However, since their credit score was low( due to financial overhang from COVID when some tenants stopped paying rent), they could not get a refi loan. A loan broker referred them to us. We paid off the current mortgage and provided enough funds so they could upgrade the property. Based on a substantially higher CAP rate, once all the units were rented( at higher rental rates), they were able to secure a favorable refi loan and pay us off.
2. Cure( bring current) a NOD( in preforeclosure) first position loan. We paid off the overdue balance, thereby preserving the equity in the property. This involved a deedinlieu, cashforkeys transaction because the owner could no longer afford the property. Once the property was sold, our firm was paid in full and the owner walked away with a good amount of money as well.
7. Properties in need of upgrades to boost the CAP rate
B. Here are our general funding parameters:
1. We only work with experienced real estate investors( REI Pros)
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