A recent borrower owned real estate in one of the New Jersey shore towns, including an ice cream parlor that had been in the family for decades. They had significant damage to their building from Superstorm Sandy and didn’t have adequate insurance so they had been closed since then. One of their other pieces of real estate was a vacant former post office location and it was listed for sale. Without their business operating, and after losing the post office tenant, their cash flow was tight and their credit was suffering. The vacant post office property appraised for $300,000. Excel lent them $175,000 against that property to give them money to renovate and re-open the ice cream parlor for the summer season. The loan will be paid off when the building sells.
A salon owner in South Jersey needed money to renovate her salon which was in a rented location. She had good cashflow but it didn’t look that way from the business tax returns and her husband works but gets paid in cash. They owned an investment property which was free and clear and appraised for $165,000. Excel made her a $70,000 business loan and used the investment property as collateral.
A local business owner had financial trouble and filed a bankruptcy in 2016. He turned things around for himself and his business but still had a lot of debt that was difficult to manage and the stigma of the bankruptcy on his credit report. He owns the building where his business operates on the first floor, and there is a rented apartment on the second floor. No bank would help him because of his credit. His building appraised for $275,000 and Excel lent him $135,000 to consolidate all of his debt, replace the heater in the building, and give him some working capital to continue his turnaround. He should be able to get a conventional refinance once the credit issues are another year or two behind him.
A borrower with great credit and income paid $240,000 cash for an investment property that he intended to “fix and flip”. He was disappointed to find out that banks are not very interested in this type of short-term financing. He didn’t realize it would be so difficult considering how strong he was financially. He also didn’t realize that they would micro-manage every step of his renovation process. Excel lent him $120,000 to complete the renovations and made it easy – no holdbacks, no inspections. We were able to use logic over typical-lending mentality.
A commercial landscaper/tree company wanted to buy the property next door to their business to add street frontage to his property and convert the existing house into his new office. His credit was “ok” and his bank statements looked great but his tax returns would never qualify him for conventional financing. Excel cross-collateralized his existing property and the new one and lent him $155,000 – the full purchase price plus all closings costs.
A recent borrower purchased a bank-foreclosed property “down the shore” 2 blocks from the beach. He got a great deal on the price, but the property had been vacant for a long time and was in need of some minor repair. As a result, he could not obtain conventional financing. Excel gave him a loan to purchase the property and will assist with a conventional refinance once the renovations are completed and the property is rented.
A local business owner had fallen on hard times due to family illness. He owned his building where he operated a deli business and there were two rental apartments upstairs. The deli was closed and the apartments were vacant and in need of some repair. The mortgage was held by the prior owner who had been very understanding with the borrower’s situation and worked with him. Unfortunately, this person passed away and his heirs were not as understanding. They initiated foreclosure on the building. Excel provided the building owner a loan which paid off the mortgage and provided some additional capital to get the business opened again, and get the apartments back in rent-able condition.
A pizza-shop owner made too many late payments on his bank loan and they would not renew the loan when it came up for maturity. He was also two years behind on real-estate taxes. The bank had initiated foreclosure. His plan was to sell the business and the building but the bank would not wait. Excel made him a loan for $115,000 to pay off the bank and the real-estate taxes and give him time to sell the business and building for full-market value rather than having to fire sale it or lose it at foreclosure.
A father-and-son team purchased a shutdown bar and grill with plans to renovate and reopen the establishment. Dad cashed in his retirement assets to buy the place and they figured they could get a loan from a bank for the rest. They quickly learned that banks are not generally interested in startup bar/restaurant financing. Excel lent them $160,000 to complete the renovations and purchase inventory to get opened.
A family with a lot of real estate assets put one property into a trust for their troubled daughter before they passed away. The trustee had run out of liquid assets to manage the trust and there were several liens and judgments against the daughter from different business deals gone bad. Excel lent the trust $550,000 for the trustee to clean up all of the daughters bad debts including delinquent real-estate taxes on the subject property. This was a pure “bridge to sale” loan and included a 12-month interest, insurance and real estate tax reserve to service the debt until the property was sold.
An auto repair shop owner in North Jersey was in the middle of a difficult divorce and had to pay his ex-wife significant sums of money based on their property settlement agreement. His business was good but his financial reporting and personal credit were poor. Excel lent him $700,000 to consolidate all of his debt and pay his divorce settlement debt.
A long time greenhouse and outdoor furniture company sold their property to a seasoned residential home builder who needed to obtain building approvals from the township and county. The agreement had an 18-month term with extension options to accommodate the lengthy approval process for the builder. Their bank would not agree to wait and initiated foreclosure on the property. Excel lent them $750,000 to pay off the foreclosing bank and provide enough time for the builder to get through the approval process.
A team of brothers built a very successful retail fulfillment business but a combination of expanding across the country too rapidly and suffering with the decline in retail sales caused them some financial setbacks. They never missed a loan payment but the declining performance triggered their bank to call all of their loans due. Excel lent them $920,000 to pay off the bank and complete their turnaround plans.
A motel owner suffered major property damage from Superstorm Sandy. He obtained some insurance proceeds and used his own supplemental funds to repair the damage. The down time negatively affected his business and his bank was not very understanding about the hardship. They called his loan due which prompted a bankruptcy filing to stop a sheriff sale. Excel lent him $495,000 to pay off the bank and give him enough time to stabilize the business.