Boston-based lender navigates persistent obstacles to deliver previously unattainable financing for self-storage facility borrower.
Virtually no challenge was absent from this SBA 7(a) real estate loan request: subordination negotiation, debt ratio shortfall, collateral risk, prohibitive insurance, you-name-it.
Boston-based finance innovator South End Capital Corporation (SECC) has once again stepped up to the plate with a commercial finance solution no bank could bring home.
The borrowers were seeking a commercial mortgage on an NJ self-storage facility, plus working capital and closing costs. As far as the other lenders the borrower had approached were concerned, the barriers presented were insurmountable.
Once SECC was consulted, however, the whole picture changed for the concerned mortgage-seeker.
According to South End Capital’s Founder and Managing Director, Noah Grayson, “Virtually no challenge was absent from this SBA 7(a) real estate loan request: subordination negotiation, debt ratio shortfall, collateral risk, prohibitive insurance, you-name-it. But our team just doesn’t give up easily.”
For the $578,000 loan amount, details included:
Refinance of a $624,000 first mortgage (SECC negotiated the subordination)
$40,500 working capital and the balance to cover closing costs
6% interest (2.75% + prime), amortized over 25 years and adjustable quarterly
“The hours we put in on tough transactions like this one would scare most lenders away,” Grayson declared. “But South End Capital is in the business of providing solutions that other lenders simply cannot offer to the marketplace. This closing and other recent SECC closings demonstrate just how well our uniquely structured programs are delivering.”
South End Capital Corp. works directly with borrowers and routinely with brokers, paying referral fees to its approved partners. To inquire about the many innovative programs available through South End Capital Corp., contact Joel Soforenko directly at (888) 268.7778 ext. 2 or joel@southendcapital.com
Showing posts with label Self Storage Lending. Show all posts
Showing posts with label Self Storage Lending. Show all posts
Tuesday, June 17, 2014
Wednesday, April 9, 2014
SECC Secures SBA 7(a) Funding for Self Storage Facility & Plagued Borrower
Impossible-to-Fund’ SBA Loan Closed by Undaunted South End Capital
The borrower needed SBA funding for an unbankable situation, and SECC's unrestricted SBA loan program came to the rescue.
“This kind of funding effort is what we’re all about. We offer the kinds of flexible programs that are designed to help real people with real problems—the 80 to 90 percent of potential borrowers who don’t have immaculate financial pictures but work hard every day to make their businesses succeed. Then we go to bat for them the way no one else will.”
SECC’s flexible loan program offered the self-storage facility borrower bankable terms for what other lenders would deem an unbankable situation. Among his firm’s assistance efforts, said Grayson, “We utilized debt-service projections and were able to waive the YTD data requirements; then we secured an exception for the life insurance coverage requisites. We got behind our Preferred Broker on this transaction because we value our client relationships and know how to work out of the box to close our brokers’ loans.”
Closing details: On the unrestricted SBA 7(a) loan for the 161-unit New Jersey self-storage facility, the interest rate was 6% (2.75% + WSJ Prime) and was quarterly adjustable, the loan was amortized over 25 years and SECC charged 0 loan points. Loan proceeds went to refinance the borrower’s first mortgage, cover closing costs and provide him with $25,000 in working capital.
To inquire about SECC’s unrestricted SBA 7(a) loan and the many innovative programs available through South End Capital Corp., contact Joel Soforenko directly at (888) 268.7778 ext. 2, or joel@southendcapital(dot)com.
ABOUT SOUTH END CAPITAL CORPORATION
With offices on both the East and West Coasts, SECC is a direct commercial real estate lender providing private money loans up to $500,000 nationwide, and offering SBA, multifamily, bridge and bankable loans up to $20 million in participation with third-party investors. SECC also provides training and marketing services to commercial mortgage brokers through all stages of their business development. Additionally, SECC offers same-day term sheets, excellent service and prompt responses, is broker-friendly and pays referral fees to approved partners. For additional information, visit http://www.southendcapital.com or contact Joel Soforenko toll-free at (888) 268.7778 x 2 joel@southendcapital(dot)com.
Via Unrestricted Program and Firm’s Story-Based Approach, SECC Secures SBA 7(a) Funding for Plagued Borrower
The borrower needed SBA funding for an unbankable situation, and SECC's unrestricted SBA loan program came to the rescue.
Recently, a borrower seeking a high six-figure small business loan for his self-storage facility struggled to find a lender; at every turn he was impeded by his unbankable situation. Yet for commercial real estate and small business lender South End Capital Corp. (SECC), headquartered in Boston, the loan scenario was transactable. In fact, for SECC, such "impossible" loans are the bread-and-butter business that conventional lenders usually throw away.
This latest SECC closing is a case in point: The borrower needed $775,000 in SBA funding but had a recent bankruptcy (dismissed in 2012), business cash flow that was just break-even and didn’t meet underwriting guidelines, and property that was only 70% occupied. The client’s credit score hovered at 641, he couldn’t get his hands on YTD financials during his tax-season crunch, and his term life insurance policy didn’t meet SBA requirements.“This kind of funding effort is what we’re all about. We offer the kinds of flexible programs that are designed to help real people with real problems—the 80 to 90 percent of potential borrowers who don’t have immaculate financial pictures but work hard every day to make their businesses succeed. Then we go to bat for them the way no one else will.”
SECC’s flexible loan program offered the self-storage facility borrower bankable terms for what other lenders would deem an unbankable situation. Among his firm’s assistance efforts, said Grayson, “We utilized debt-service projections and were able to waive the YTD data requirements; then we secured an exception for the life insurance coverage requisites. We got behind our Preferred Broker on this transaction because we value our client relationships and know how to work out of the box to close our brokers’ loans.”
Closing details: On the unrestricted SBA 7(a) loan for the 161-unit New Jersey self-storage facility, the interest rate was 6% (2.75% + WSJ Prime) and was quarterly adjustable, the loan was amortized over 25 years and SECC charged 0 loan points. Loan proceeds went to refinance the borrower’s first mortgage, cover closing costs and provide him with $25,000 in working capital.
To inquire about SECC’s unrestricted SBA 7(a) loan and the many innovative programs available through South End Capital Corp., contact Joel Soforenko directly at (888) 268.7778 ext. 2, or joel@southendcapital(dot)com.
ABOUT SOUTH END CAPITAL CORPORATION
With offices on both the East and West Coasts, SECC is a direct commercial real estate lender providing private money loans up to $500,000 nationwide, and offering SBA, multifamily, bridge and bankable loans up to $20 million in participation with third-party investors. SECC also provides training and marketing services to commercial mortgage brokers through all stages of their business development. Additionally, SECC offers same-day term sheets, excellent service and prompt responses, is broker-friendly and pays referral fees to approved partners. For additional information, visit http://www.southendcapital.com or contact Joel Soforenko toll-free at (888) 268.7778 x 2 joel@southendcapital(dot)com.
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