Real Estate purchase 90% LTV SBA failure but have 90% CLTV hard money success..
Two brokers recently reached out to me about their SBA failure try to get a 90% LTV deal SBA 504/7A financing.
One was a $3M purchase on a $4M value office building. They were trying to finance the $3M without success.
So here's how I restructured.
Purchase price $4M 70% LTV = $2.8M to seller (short $200K)
20% seller carryback note of $800K= 90% CLTV.
Buyer brings 10% to the table $400k + fees + short to buyer $200K = $600K plus fees.
Loan is 10 year Interest Only at 10.99% then amortized 20 years.
Compared to SBA = extra cost the 200K
Interest only that is fixed for 10 years vs. SBA Adjustable and amortized. (depends on the program)
No income documentation vs. Full Docs
Mimimal underwriting vs. full underwriting
Closed in 4 weeks vs. 45-60 days.
After closing the seller throws the note away and removes the lien as he got his $3M.$2.8M plus the $200K.
Reach out if you need help restructing dealsSFR and multi would be at 75% LTV, 15% seller carryback for 90% CLTV
Last edited by Olderguy; Today at 12:33 PM.
Steve Benjamin
Professional Business Loans
522 Contessa
Irvine, CA 92620
https://probizloans.net/Broker, Underwriter, general business loan expert
949.228.1050