Updated about 5 years ago on . Most recent reply
looking for special lender
I am trying to help out a friend of mine finding a loan for his business (and myself).
This is his situation:
He is a hard money lender. Specifically, he is a General Partner in a LP company with $11m of pure equity from his extended family:
- - 5 years of successful financials of lending (ROE ~12%)
- - 100% equity - no debt
- - perfect credit, good net worth and good income (from the company)... willing to give personal guarantee
His goal is to increase flexibility and cash efficacy in his hard money lending business through ~$1m line of credit (very low leverage compared to $11m equity).
Does any one know how to find a lender that would finance a successful hard money lending business? I tried helping him, but all financial institutions I talk with do not want mortgage notes as collateral... they want either actual real estate or receivables.
I also have a (small) hard money lending operation of $1m and am interested in growing it... so I am tying to help my friend to also potentially piggy back in the future on whatever he does (ideally developing a relationship with the same lender).
Does anyone know a lender that would lend to a successful hard money lending business wanting to leverage?
thank you!