Private Money Rocks!

This is a heartwarming story of how our private money fund helped an entrepreneur fund her dreams of owning another daycare center when no one else would lend to her.

This loan closed in Las Vega, Nevada, using our private money funds.  The owner already owned a daycare center but wanted to buy another center that she knew was being poorly run.  This borrower was a gem, as he had experience in daycare operations and a 700-credit score. She was able to get the daycare business for free but needed to purchase the property at a sales price of $750,000.

Normally this would be an SBA deal. However, she tried several SBA lenders, and they all denied the loan requests because she did not have two (2) years of tax returns: (she started her daycare center in 2020 just before COVID-19 hit). The business not only survived, but her 2021 numbers were great! But she did not have time to file the 2021 returns quickly enough to close for the seller.  So, she needed private money. 

The deal came in at the beginning of the month and had to close by the 25th for the borrower to file for a necessary grant by the deadline of the 28th. We had to close in three (3) weeks. She had enough money to put down, so our loan amount was only $462,500 on a $750,000 loan.

We had everything you'd want in a private money loan:  a low LTV, great credit, good cash flow and a great exit strategy. We got all the third-party due diligence checks back quickly – everything checked out and we were able to close in the three (3) week timeframe. This borrower is expanding her business and because our payments are interest-only, she could afford the payment. 

All in all, the realtors won, the seller got what they needed, and our borrower is happy and is now hard at work building her daycare empire! Once she files her returns, it will be easy for us to refinance her to a SBA loan.