Seeking short term note on note financing for NPLs secured by CRE

[Jean G.]

My company purchases non performing loans from banks secured by commercial real estate with high equity. We then liquidate these loans, and do it again.

Is there any bridge lender here who would be interested in discussing providing leverage against these assets, so we could buy more of them in parallel and scale up?

How this would typically look for you as a lender, is:

- You would loan 70 to 80% of our purchase price of each individual loan which would have you sit below 50% LTV against the collateral property. Sometimes much lower. We regularly come across loans at 25% LTV where you would then be sitting under 20% LTV against the collateral

- Typical loan duration is 2 to 8 months

- Typical individual loan amount in the $400k to $800k range

- Majority of assets that fit our criteria seem to be in Texas at the moment. Other states could include CA, AZ, UT, NV (I know that one is tough for most lenders). Typical asset is located in a suburban areas with low crime and growing population.

- All collaterals are CRE, no residential. Typical assets could be retail shopping center, medical office, flex, free standing restaurant, daycare. Rarely any specialty properties unless the metrics are extremely attractive.

- Your direct security would be in the form of a "collateral assignment" that is recorded against the APN and basically puts a lien against the deed of trust that we are the beneficiary of. During a payoff transaction of our loan insured by a title company (sale or refi of the collateral property), the title company would not clear title without paying off your loan to release the security assignment recorded against the collateral.

If we manage to obtain direct title to the property through foreclosure or deed in lieu, your security turns into a normal deed of trust (like a normal loan that you make every day).

- We can build an interest reserve into your loan to provide additional security, so from your point of view it's sort of a performing asset

Loans could be done on an asset by asset basis, or in the form of a guidance line with strict criteria that you define.

We have active deal flow for the above.

Please message me if you're able to help with this unique lending requirement.

[Jay Hinrichs]

Quote from @Mike Grudzien:

This is cool and creative!  I'm following this for more comments.

this is how most HML that are large are set up with thier guidance lines.. pretty common set up on the arrange of the collateral etc etc.