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Barnett REI Finance is primarily an asset
based lender focused on short term loans (12
months), and lines of credit. However, in our
interview Vince Pace pointed out several unique
and magnetic features, which stand out on the
lending landscape.
• No recent deal requirement for flippers and
rehabbers who may be returning to the mar-
ket after a break
• Ability to finance portfolios of lower value
units nationwide
• New construction loans with up to 85% of
total cost in select markets
• Lines of credit on existing free and clear
properties
• Liquidity-based credit lines
MORE REASONS TO LOVE
BARNETT REI FINANCE

1. Short-term financing for flipping houses,
and stabilizing income properties
2. Equity release from existing portfolios
of properties
3. Construction loans, including new
construction
4. Auction financing
5. Lines of credit for investors
6. Loans for foreign nationals
profitability for investors. While they may not be
planning any more extreme reduction in borrow-
ing criteria, he says they do not see any need for
tightening lending in the near future either.
THE TEAM
Pace tells us that the construction program
normally offers a “two-day inspection,” for draws
in most markets, which can give builders a
substantial time and cash flow advantage. Bar-
nett’s financing is typically interest-only, allowing
investors more flexibility, until they exit or obtain
permanent financing. That interest is only paid
on the active portion of the debt, not the total line
or loan. Lines of credit typically give investors
access to capital on a roughly 1:3 ratio. So if you
have $250,000 to work with, Barnett would typi-
cally extend approximately $750,000 in credit.
Personal credit is also rarely a factor, “unless
related to your planned exit.” For example: you
plan to get a personal loan or mortgage on an
income property. What’s really cool is that Bar-
nett does not charge points. That means a lower
APR, and cheaper cost of money for investors.
These commercial-style loans may even get from
application to closing in as little as “two days with
a very responsive borrower.”
Barnett is also open to a wide variety of prop-
erty types. That may be renovating a historic
house, an industrial space, or taking over and
completing new construction providing you’ve got
a “weather-proof box.” Looking ahead Vincent
says the company is confident in its loans and
Realty411Guide.com
Six Loan Products from Barnett Capital
Barnett REI Finance has an
extensive team. Joel Barnett, as
chairman and president of Barnett
Capital, sets the overall strategy
for Barnett REI Finance and all
other Barnett Capital portfolio
companies. Ken Fixler serves as
chair of Barnett REI Finance’s credit committee
and brings his experience in building and renovat-
ing hundreds of single-family homes as the head
of Barnett Homes. Elan Peretz, general counsel
and managing director of Barnett Capital, also
serves on Barnett REI Finance’s credit committee.
Vincent Pace manages Barnett REI Finance,
and is also part of Barnett Capital’s in-house legal
team. Vincent found himself at Barnett after prac-
ticing securities law for major international law
firms in Tokyo, New York, and Beijing. He holds
multiple degrees earned both in the U.S. and
abroad. As one of the firm’s multilingual staff he
speaks Japanese, Chinese, Portuguese, Spanish,
and English.
Find out more about Barnett REI Finance’s loan
programs or submit an application online at:
www.barnettcapital.com.
PAGE 50 • 2017

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