3. The principal owned their current property free and clear. They wanted to buy a larger property. However, despite having enough income, no lenders would cooperate due to their very low FICO scores. What they needed was a jumbo down payment. One lender had committed to a 50 % loan, which meant the principal had to come up with 50 % down that they didn’ t have. Our firm provided the missing 50 % down payment money.
4. Seller Carryback Down Payment( DP): We supplied DP funding to the REI Pro because the current owner was highly motivated to sell now. The key was that the seller was willing to temporarily subordinate to a second position, sixmonth note for 80 % of the purchase price, allowing our firm to take a first position note for the down payment amount we provided. Once we were paid off, the second position note automatically assumed first position status.
5. A General Contractor Investor( GCI) owned two acres of prime residential real estate, free and clear, with no loans or liens against the property. The land
had already been successfully subdivided, entitlements were all in place, architectural drawings and plans were 100 % complete for all the multis he wanted to build. Further, the GCI has already arranged a construction loan with a major bank for all the new houses, to be built, one after another, in a series. The only thing left to do, prior to starting work, was to pay for the( already approved) permits on the first couple of units. The problem is that the GCI’ s wife recently filed for divorce, tying up all the CGI’ s assets, including the funds he had previously put aside to pay for the permits. We provided funds for the permits, using the land as collateral. By prearrangement, the bank providing the construction loan had agreed to“ overfund” the construction loan to provide payback to our firm.
6. A property was part of an estate. The owner died and the property went into probate. While the commercial property had a lot of equity in it, there was still an outstanding first mortgage with a modest amount still due. The court ruled that the mortgage had to be paid off completely before probate could close. The four heirs to the estate did not get along well.
Image from Canva Pro
Image from Canva Pro
The result is that, because of a total lack of trust, none of them would agree to pay off the amount due on the mortgage. It was a financial standoff. Our firm was referred into the situation by an attorney. We provided sufficient capital to pay off the current loan balance. Probate was able to close; the heirs got their money; our firm was paid off for its investment + standard markup.
7. Ultra shortterm funding: The principal in the deal needed $ 105,000 for just five( 5) business days. They needed the funds for about one month in the future— again for less than one week. Once the deal was done, our firm was paid off for its investment + standard markup.
E. If you believe you have a deal that meets our standard criteria, please send an email to creativetransactionfunding @ gmail. com and request a Deal Work Up Form.
Looking forward to hearing from you soon.
Sincerely, Tod Snodgrass Creative Transaction Funding LLC info @ creativetransactionfunding. com
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