619 Boardman Flats (2023)

Not all loans fit in the Bankers Box

The Borrower had an incredible plan, and the Bank didn't like it. The Borrower looked for lenders that were willing to take a chance but also understood the detailed business plan, which was to acquire a 12-unit apartment building, record a new Plat to convert the units from apartments to condominiums, and eventually resell the condos at a market value price.

The Bank didn't fully comprehend, but with our business background and development experience, we could already see the profits for the Borrower, and we jumped at the opportunity to fund a $1.2m loan to acquire the property within weeks. Within 12 months of our bridge loan, the Borrower had sold 8 of the units, fully repaying the loan prior to Maturity.

The structure was extremely unique, as we allowed the Borrower to partially repay the loan based on each unit sale for a minimum amount while retaining a risk-adjusted loan to value on the property. Ultimately, it was a successful loan for both Borrower and Lender. We understood the deal, understood the risk, and listened to the Borrowers needs versus trying to fit the deal into one box or another. We got creative again.

Rough Terms

$1.2m Loan to Acquire an Apartment Complex
3 PT Origination
15% I/O until the loan fell below $800k
12% I/O for the remainder of the loan
Borrower could prepay the loan with $150k of minimum paydown upon each unit sale

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231 Garden Lane (2024)

A Refinance Default Structure

The Borrower acquired an island-style home in SW Florida and utilized it as a vacation rental for tourists in the area. When acquired, the Borrower accepted seller-financing terms with a short maturity (6 months). Ultimately, the Borrower was not able to procure the refinance in the 6 months and requested an extension. The Lender was not willing to extend their maturity for personal reasons. At this stage, usually a long and drawn-out Foreclosure would have occurred, but we were contacted because we were a well-known local investor in the area and knew the property well. Since the negotiations were at a standstill, we decided to purchase the Note from the existing Lender at full value, renegotiate terms with the Borrower and hold the Note until the Borrower could execute on his payoff plan. Ultimately, it was our local knowledge of the asset's value and our willingness to provide the Borrower ample time to execute on their refinancing activities.

Terms

4 Pt Origination (carried through payoff)
15% Interest Only (Accrued through payoff)
4 month maturity, with extension options which were granted 2x.

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Stateline Speedway (2025)

An Acquisition needing a creative solution

The Borrower (a tech founder) whose liquidity was frozen in his startup wanted to pursue the acquisition of a side-venture; acquiring, revitalizing, and operating his local childhood speedway race track with his wife. He was searching for ways to source funding for the acquisition, and many lenders turned him down, yet as a current investor in his startup, we already knew he was the real deal. He requested a short-term financing solution to acquire the park, so we got creative. We allocated a conditional cross-collateral funding against secondary valued shares of his startup along with collateralizing the underlying asset, the land and real estate associated with the speedway.