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
Tuesday, June 17, 2014
Tuesday, June 10, 2014
South End Capital Closes $3.2M SBA 7(a) Loan for Dentist Office Acquisition and Construction
SECC eclipsed national banks with flexible and aggressive SBA 7(a) program that bundled borrower’s property, debt refi, construction funds, equipment purchase and more.
Other lenders wanted more collateral, would not finance the non – real estate portions of the loan, and had unreasonable prerequisites for financing the construction aspect. SECC was able to provide a solution even the borrower hadn’t envisioned.
The latest SBA 7(a) loan closing from Boston-based finance innovator South End Capital Corporation (SECC) highlights just how different this lender is from its competition in the marketplace. For the purchase of an office condominium for a dental practice in Forest Hills, NY, SECC came through with a broad-based creative solution that also met numerous peripheral financing needs for the borrower. A score of national and regional lenders had not been able to offer the borrower a workable solution.
“The creativity of our loan structure is what made this work for the borrower,” explained South End Capital’s Founder and Managing Director Noah Grayson, who pointed to the firm’s exceptionally flexible and aggressive SBA 7(a) program. “Other lenders wanted more collateral, wouldn’t finance the non – real estate portions of the loan, and had unreasonable prerequisites to finance the construction aspect of the loan. But we work each loan request uniquely and were able to provide a solution even the borrower hadn’t envisioned.”
For the $3,215,000 loan (real estate purchase price of $2,250,000), the borrower put down only $232,500 or 7.2% of the total project costs. A 138% loan to real estate (LTV) purchase price, with NO loan points, was provided. Interest rate: 2.25% + WSJ Prime or 5.5% on a quarterly adjustable rate, amortized over 21.5 years. More details:
$216,697 was provided to consolidate existing debt
$168,245 was provided to purchase new equipment
$537,152 was provided for construction/renovations and office build-out
$90,408 was provided as working capital
Balance of funds covered loan and construction soft costs
“South End Capital was conceived expressly to provide solutions that other lenders simply cannot offer to the marketplace,” Grayson stated. “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. 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
Other lenders wanted more collateral, would not finance the non – real estate portions of the loan, and had unreasonable prerequisites for financing the construction aspect. SECC was able to provide a solution even the borrower hadn’t envisioned.
The latest SBA 7(a) loan closing from Boston-based finance innovator South End Capital Corporation (SECC) highlights just how different this lender is from its competition in the marketplace. For the purchase of an office condominium for a dental practice in Forest Hills, NY, SECC came through with a broad-based creative solution that also met numerous peripheral financing needs for the borrower. A score of national and regional lenders had not been able to offer the borrower a workable solution.
“The creativity of our loan structure is what made this work for the borrower,” explained South End Capital’s Founder and Managing Director Noah Grayson, who pointed to the firm’s exceptionally flexible and aggressive SBA 7(a) program. “Other lenders wanted more collateral, wouldn’t finance the non – real estate portions of the loan, and had unreasonable prerequisites to finance the construction aspect of the loan. But we work each loan request uniquely and were able to provide a solution even the borrower hadn’t envisioned.”
For the $3,215,000 loan (real estate purchase price of $2,250,000), the borrower put down only $232,500 or 7.2% of the total project costs. A 138% loan to real estate (LTV) purchase price, with NO loan points, was provided. Interest rate: 2.25% + WSJ Prime or 5.5% on a quarterly adjustable rate, amortized over 21.5 years. More details:
$216,697 was provided to consolidate existing debt
$168,245 was provided to purchase new equipment
$537,152 was provided for construction/renovations and office build-out
$90,408 was provided as working capital
Balance of funds covered loan and construction soft costs
“South End Capital was conceived expressly to provide solutions that other lenders simply cannot offer to the marketplace,” Grayson stated. “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. 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
Tuesday, June 3, 2014
Business Cash Flow Loans - No Real Estate Required
New Private Money, Small Business Loan Program from South End Capital Debuts with Two Swift Closings
Brand-new program rescues small business borrowers previously dependent upon credit card receivable loans, merchant cash advances and factoring.
- Before our new program launched, small business owners rejected by banks and SBA financing had only painful options: merchant cash advances, credit card receivable loans or factoring programs with daily payments and rates up to 130 percent.
Under a freshly launched Non-SBA Business Loan Program from Boston-based South End Capital Corporation (SECC), those who have been unable to finance expansion and other business needs finally have a welcome and affordable solution.
Prior to the new program announcement by SECC Founder and Managing Director Noah Grayson, the only options for small business owners who didn’t qualify for bank or SBA financing have been painful ones: merchant cash advances, credit card receivable loans, or factoring programs with untenable rates of up to 130%, often requiring daily loan payments.“Without owning hard collateral such as real estate or equipment, it’s been unspeakably difficult for many hard-working owners of profitable small businesses to get their hands on the capital they urgently need to grow their operations,” Grayson stated. “But our new Non-SBA Business Loan Program doesn’t require hard collateral. And this is a private money business loan program with much more manageable rates than other non-bank or non-SBA programs. There are bi-monthly or monthly payment options, and no prepayment penalties in most cases.”
Additional details of the nationwide, cash flow – based program include interest rates starting at 7.99%, loan terms out to four years, credit scores down to 600, and ultra-fast closings (as little as three days). Most businesses in the US will be considered, and business owners should be delighted by the limited documentation requirements and one-page application. More program information can be found on the SECC website.
SECC’s initial closings within the new program highlight the many benefits available: An accounting firm owner with a 715 credit score and healthy business income was seeking a $75,000 expansion loan but, because of the small loan size and borrower’s lack of hard collateral, the firm was turned down by all lenders approached. SECC, however, closed the loan in only seven days, based strictly on the cash-flow of the business. An added plus: zero out-of-pocket expenses to the borrower.
The second closing, for a dental practice, involved a loan amount of $150,000 to provide working capital and expansion funds for equipment and a new office location. The borrower had solid credit and business cash-flow but no real estate collateral. She needed the improvement funds quickly and didn’t have the time to jump through SBA or bank loan hoops. Working with SECC, her loan closed three days after she accepted the loan offer.
Grayson is proud of his company’s fair and innovative solutions for business and commercial real estate borrowers nationwide—a niche SECC has effectively carved out since 2009. “This closing and other recent SECC closings demonstrate just how well our expanded programs are delivering,” he offered.
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
Wednesday, May 14, 2014
South End Capital Provides Fannie Mae Multifamily Financing For Borrowers Regected by Banks
Flexible loan program offers new hope to multifamily investors with imperfect qualifications.
We've aggressively expanded our multifamily loan program to offer bankable terms for borrowers deemed unbankable by other lenders.
South End Capital’s mid-April $3.2 million closing on its clients’ purchase of a $4 million multifamily property is just the latest coup for the Boston-based commercial real estate lender specializing in “hard to finance” transactions.
The financing for the 86-unit multifamily property in Livingston, CA had hit a wall with conventional lenders. The property was in a less than desirable tertiary market with a population of only about 13,000 people; what’s more, the borrowers had limited multifamily ownership and management experience, yet wanted a high loan-to-value (LTV) of 80% and better-than-market terms.
“Clearly, this was a loan on which most lenders would have great difficulty competing,” South End Capital Corporation (SECC) Founder and Managing Director Noah Grayson pointed out. Grayson’s firm, however, was able to provide a 7-year fixed, non-recourse loan amortized over 30 years at 4.69% and with no loan points, to boot. But that’s not unusual: The company’s nationwide multifamily loan program (five units and up) now offers 5-year fixed loans as low as 4.12%, 7-year fixed loans as low as 4.5%, and 10-year fixed loans as low as 5.05%, all amortized over 30 years (longer fixed periods are available).
According to Grayson, SECC will consider multifamily loan sizes from $50,000 to $20,000,000 and higher, with the best pricing (down to par) available on loans over $1,000,000. Loan-to-value (LTV) can go up to 80% on multifamily purchase transactions and rate-and-term refinances, and up to 75% on multifamily cash-out refinances. The company also offers non-recourse loans (no personal guarantee on the loan required). All US markets are eligible, regardless of population size or geographic location, and SECC will also consider multifamily loans for foreign nationals and bulk residential transactions under similar but slightly more conservative programs.
“We’ve aggressively expanded our programs in the past months,” Grayson explained, “specifically to assist entrepreneurial property investors and business owners nationwide who feel they have been denied access to capital at every turn. Our recent SECC closings demonstrate just how well our expanded 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 SECC’s expanded multifamily loan program and the many innovative programs available through South End Capital Corp., contact Noah Grayson directly at (888) 268.7778 ext. 2, or joel@southendcapital.com
We've aggressively expanded our multifamily loan program to offer bankable terms for borrowers deemed unbankable by other lenders. The financing for the 86-unit multifamily property in Livingston, CA had hit a wall with conventional lenders. The property was in a less than desirable tertiary market with a population of only about 13,000 people; what’s more, the borrowers had limited multifamily ownership and management experience, yet wanted a high loan-to-value (LTV) of 80% and better-than-market terms.
“Clearly, this was a loan on which most lenders would have great difficulty competing,” South End Capital Corporation (SECC) Founder and Managing Director Noah Grayson pointed out. Grayson’s firm, however, was able to provide a 7-year fixed, non-recourse loan amortized over 30 years at 4.69% and with no loan points, to boot. But that’s not unusual: The company’s nationwide multifamily loan program (five units and up) now offers 5-year fixed loans as low as 4.12%, 7-year fixed loans as low as 4.5%, and 10-year fixed loans as low as 5.05%, all amortized over 30 years (longer fixed periods are available).
According to Grayson, SECC will consider multifamily loan sizes from $50,000 to $20,000,000 and higher, with the best pricing (down to par) available on loans over $1,000,000. Loan-to-value (LTV) can go up to 80% on multifamily purchase transactions and rate-and-term refinances, and up to 75% on multifamily cash-out refinances. The company also offers non-recourse loans (no personal guarantee on the loan required). All US markets are eligible, regardless of population size or geographic location, and SECC will also consider multifamily loans for foreign nationals and bulk residential transactions under similar but slightly more conservative programs.
“We’ve aggressively expanded our programs in the past months,” Grayson explained, “specifically to assist entrepreneurial property investors and business owners nationwide who feel they have been denied access to capital at every turn. Our recent SECC closings demonstrate just how well our expanded 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 SECC’s expanded multifamily loan program and the many innovative programs available through South End Capital Corp., contact Noah Grayson directly at (888) 268.7778 ext. 2, or joel@southendcapital.com
Friday, May 9, 2014
South End Capital Corp - Small Balance Private Money Loans
South End Capital to Fund Small-Balance Private Money Loans for ‘Challenged’ Commercial Real Estate Borrowers
Nationwide program focuses on private money niche ignored by other lenders
We're focusing on smaller private-money loans for commercial real estate because this niche has been overlooked by most, if not all, lenders.
Boston, MA (PRWEB) April 29, 2014
South End Capital Corporation (SECC) announced today that it has launched a new and unique small private money program designed to assist borrowers who are seeking small-balance or small-size commercial real estate loans of $50,000 to $500,000. The funding is designed to accommodate borrowers with imperfect credit who are self-employed or seeking a swift and painless loan process.According to SECC founder and Managing Director Noah Grayson, the firm will be lending on this program directly. “We are focusing on these smaller loan sizes specifically because they constitute a private money finance niche that has, to date, been overlooked by most—if not all—commercial real estate lenders. These lenders are ordinarily interested in closing private money loans of a million dollars and up; they shy away from anything under that, let alone under half a million.”
The program will also provide a financing option for commercial real estate owners and investors who fall out of bankable parameters because of their challenging credit or financial situations.
SECC’s new nationwide private money loan program has no population restrictions; primary, secondary and tertiary markets are generally allowed. Most commercial property types qualify, with loan-to-value ratios of up to 70 percent. Rates and terms start as low as 8.5 percent with no or low loan points. Loan closings can take place in as few as two to three weeks. Additional program criteria are available right now.
“This is a common-sense underwriting program with light documentation requirements,” Grayson pointed out. “It’s competitively priced and ideal for self-employed borrowers and small property investors who need custom-tailored loan terms.” SECC welcomes both borrower and broker inquiries (brokers working with SECC are protected). The firm also offers referral fees to approved partners.
To inquire about SECC’s new private money, non-conforming loan program and the many innovative programs available through South End Capital Corp., contact Joel Soforenko directly at (888) 268.7778 ext. 2, or joel(at)southendcapital(dot)com.
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.
Wednesday, November 13, 2013
SBA Business Only Loan Program - No Real Estate
Loan Terms:
Amouint: $50k - $350k
Recourse: Personal & Corporate
Loan Types: Business Expansion, Working Capital, Renovations,
Loan Types: Leasing, Equipment, Inventory, Business Purchase
LTV: Non - Cash Flow Based
Business Types: Any Type Existing Business (one year in business)
Territory: Nationwide
Collateral: Business Only (no real estate required)
DSCR Min: 1.25%
Credit: Troubled Credit OK - No minimum scores
Interest Rate: 6.0% (2.75% + WSJ Prime Rate)
Amortization: 10 years
Term: 10 years
Pre Pay Penalty: None
LOI Submission Requirements:
Personal Financial Statement
Credit Report
Tax Returns, most recent year
Letter of Explanation, Use of Funds
Amouint: $50k - $350k
Recourse: Personal & Corporate
Loan Types: Business Expansion, Working Capital, Renovations,
Loan Types: Leasing, Equipment, Inventory, Business Purchase
LTV: Non - Cash Flow Based
Business Types: Any Type Existing Business (one year in business)
Territory: Nationwide
Collateral: Business Only (no real estate required)
DSCR Min: 1.25%
Credit: Troubled Credit OK - No minimum scores
Interest Rate: 6.0% (2.75% + WSJ Prime Rate)
Amortization: 10 years
Term: 10 years
Pre Pay Penalty: None
LOI Submission Requirements:
Personal Financial Statement
Credit Report
Tax Returns, most recent year
Letter of Explanation, Use of Funds
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