Welcome to the Financing Revolution!

Many buyers are looking at "Hard Money" lenders versus the SBA or Home Equity loans due to the difficulty we are having in the market place. The interest rate is higher, but there are some real advantages. Here is how it works:

• Buyer puts 20% -25% down.
• The lender will finance 50% of the purchase price.
• Seller finances the balance of 25%-30% of the transactional price.
• The lender will finance from $100,000-$1,000,000.
• A third party valuation will be needed.
• There will be a fixed interest rate for full term.
• $500 non-refundable application fee (SBA's fee is $1,000) or $1,000 at closing the buyer’s choice
• 4% origination fee (same as the SBA's fee)
• Amortized for 6-7 years
• Collateral: Lien on the business & a lien on personal residence for only 2 years (SBA is collateralized for 10 years)
• Credit score must be at least 625 (SBA likes 725 and above).
  

If this sounds interesting, please contact Joan Young at Sunbelt Business Brokers for the referral of the "private label" lending program exclusively for Sunbelt Business Brokers: 408-436-1900 or jyoung@sunbeltbayarea.net.