Do You Have an Over-Leveraged Commercial Property?

Let's suppose you own a $1 million commercial property, and your existing loan of $800,000 is ballooning.  You've contacted scores of lenders, and no one will lend you more than $700,000.  They are all telling you that you'll have to bring $100,000 in cash into the closing in order to reduce your existing loan balance.

The problem is that you don't have an extra $100,000. Yikes!

Now you can try to sell your commercial building, but the moment the buyer discovers that your existing lender has filed foreclosure, he'll only find some cruel excuse to back out of the deal.  His plan will be to buy the property from the lender at a discount after foreclosure.

You're toast.  What can you do?

Blackburne & Brown is a hard money lender that also has an equity investment division.  We can actually bring equity into your deal to reduce your debt.  Now this investment is not a loan.  No-no-no!  It's an investment in the property.  In return, Blackburne & Brown takes a share of the equity.

In the above example, Blackburne & Brown would invest $100,000 in the property to reduce your existing loan to $700,000.  Ownership of the property would be transferred to an LLC, of which you, the existing owner, would own the lion's share.  You would even continue to manage the property for a fee to be negotiated.

So if you need equity dollars contributed to your deal, please call Warren More at 916-338-3232 or email him at wmore@blackburne.com.