I recently funded a loan in Pocono Lake and I had a few people ask me about the story behind it. Every loan has a story and as a lender, I love hearing the stories behind the loans. So I thought I’d share the story of this one with you as well. By the way, if you need funds for your next deal, I would love to help. Feel free to visit www.wingspreadlending.com or give me a call. :) The Deal As always, each loan starts out with a conversation with a RE investor who is interested in becoming a borrowing partner. They were looking for funding on a property in Pocono Lake that they wanted to fix up and turn into a Short Term Rental. They were purchasing the property for $132,000 with an estimated rehab budget of $43,000 including furnishing for the property. Experience Matters This couple, a husband and wife team, had reached out to me months before they contacted me for a loan. I love when investors do this because we get to know each other better and see how we can help each other in the future. It's an excellent way to start a relationship. (Pro Tip for RE Investors reading this: It never hurts to reach out to a PML and start building that relationship - even if you don't have a deal lined up.) We had talked about their experience in REI. They were able to demonstrate Rigorous Process for Selecting Profitable Deals as well as their Disciplined Project Management approach. They presented photos of past projects as well as scope of work and profitability. They were very well prepared which is always a plus for investors who are looking for a lending partner. Credit Story As you may already know, credit score is not a deal breaker for me. I want to understand the story your credit history is telling. In this case, the borrowers had great credit. This is always great to see and something that gives confidence to lenders that loans will get paid back because the borrowers could demonstrate their financial responsibility. Financial Situation The borrowers were also in a strong cash position and had already purchased materials out of their own pocket. They were also willing to put money down on the property and cover the closing and holding costs for the project. This is something that is important. Having a borrower who is already planning to have a financial stake in the deal shows they are serious and committed to the project before it starts. Outcome After talking to the borrowers and validating through doc review and underwriting, I was very happy to lend on this opportunity and start forming a partnership with this very professional couple. We agreed to a loan of $175,000 on a 6 month term with monthly interest-only payments and we closed in 22 days!
This was a great example of a win-win situation. The borrowers were able to get the funding they needed quickly and I was able to lend on a good deal with a new borrowing partner. I’ll be sharing updates of the construction project in an upcoming communication. But if you have any questions in the meantime, please don’t hesitate to reach out. Hope this was helpful for you. If you're looking for a loan on your next deal, please feel free to reach out to me or apply online at www.wingspreadlending.com Not ready to apply for a loan? We're always happy to connect with people to see how we can help in the future! By the way, feel free to share this message with others who you think may find this helpful Thanks!
This is so cool!!!