The following is an example of a common opportunity for a bridge loan to help you achieve your real estate goals. This hypothetical case study is based upon real life value add opportunities where the owners/investors made tremendous profits.
Case Study #3 Office Conversion
Real estate investors sometimes create great projects through converting a property from one use to a more desirable/profitable use. One of my favorite examples is an office building conversion to apartments in the New Jersey/New York area by a local experienced contractor.
Investor purchased a Bank office building with the vision to convert it to a multi-family building. The investor purchased the building for a great price but needed private money to both fund the purchase and to complete the construction. In total a $1,470,000 loan amount was needed. The building was in an area that was in short supply of housing (every city these days, housing shortages across the whole county) so the property value upon completion made great sense; however, traditional banks and loan companies often make it difficult to get a loan for these types of projects. At WE Direct Lending, we are happy to make such loans. The loan was structured with 100% financing of both the purchase and the constructions as the borrower had another multi-family property that he used as collateral for this project. Creative use of cross-collateralization with a private money loan allowed this project to become a reality. Once the construction is completed and the property is leased up and stabilized, the owner can refinance at a much lower rate and enjoy tremendous positive cash flow, or they can flip the property for a very nice profit.Contact Us
WE Direct Lending is comprised of reputable business experts with illustrious experience in the financing industry. We promote the principle of financial inclusion, safe lending for the borrowers, and excellent opportunities for investors. We also aim to provide simple and convenient financing for borrowers, realtors, and mortgage brokers.
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