Real Estate Bridge Lending – case 6

A business purpose (B2B) mortgage originator financing “fix & flip” borrowers found demand outstripping his capital. He wanted a warehouse line of credit so he could close significantly more transactions until the loans were “seasoned” and sold to institutional buyers.  We customized a $5 million warehouse line of credit whereby we advanced most of the funds at closing, to be repaid when the institutional buyer purchased the loan.  The mortgage originator was able to leverage his capital 4:1 and capture a significant amount of new business because of our ability to innovate and customize an approval and funding process that met his time constraints and business requirements.