Seattle Funding Group recently sent out marketing information on this very topic…the occasional land loan that fit within SFG’s portfolio. And here it is; the case in point just a week or two later.
Interesting to note the text of that earlier marketing email: SFG’s portfolio is light on land loans, by design, so it is important to know when and why a particular land loan works within our lending models. Great locations, high demand submarkets, most development approvals in place, strong sponsorship, solid exit…these are the keys.
So why does your client need SFG with all that? Deal certainty and responsiveness they cannot possibly achieve with conventional sources.
Now here was the reality of this recent $2.7M closing: A 16-lot finished, recorded residential subdivision of half-acre parcels, located in a desirable neighborhood in one of San Diego County’s largest cities. High demand, supply constrained on new home product…ready to submit plans and start building. Very strong, experienced sponsor with a big balance sheet, low leverage and excellent credit. The consequence of not having the required liquidity, however, was much greater than the nominal cost of private money and deal certainty. After waiting for a bank for months, and with less than two weeks to go, his financial advisor knew the one call to make. Called us on Friday. Met on Sunday morning. Sprinkle in a little additional security. Deal certainty by Monday afternoon. Underwrite and validate for a week. Went to docs and closed early the following week.
Deal certainty and responsiveness they cannot possibly achieve with conventional sources. And whether it’s hundreds of thousands or millions at issue, SFG is the bridge lender to call.