REAL LIFE EXAMPLES
U.S. bridging loans are useful when borrowers require liquidity to take advantage of an immediate opportunity.
Here are some popular ways in which Here are some popular ways in which U.S.A. bridging loans can be used.
PROPERTY DEVELOPMENT BY SAN FRANCISCO HNW CLIENT
U.S. bridging loan filled the gap when the normal “go-to” U.S. lenders and brokers fail
Through our office in Hong Kong we were approached by our client’s Private Banker for a loan on an ultra-luxury single family home in San Francisco.
The client had taken a favorable bank loan to purchase the property and land which he intended to redevelop into an $89M ultra luxury home to be either sold or used by his family. He had approached brokers and direct lenders from California to New York with no success. Within three weeks after engaging GMG, we found a funding source in Europe that was willing to take the risk of development financing. With some very creative bespoke structure the client was able to complete his dream home.
GMG BRIDGING LOAN
TERM
2.5 Year
Property Collateral
Bay Area Home with Completed Value $89M
LOAN AMOUNT
$62M
LOAN-TO-VALUE
70% GDV
EXIT STRATEGY
Sale or Bank refinance
KEY CONSIDERATION
Obtain development financing without need to meet traditional bank loan requirements
FORECLOSURE BAILOUT HAMPTONS
Family taps Global Mortgage Group U.S. Bridging Loan to keep family home from foreclosure
A European family with a home in S. Hamptons, New York was facing foreclosure due to poor financial planning and a recent death in the family. They contacted Global Mortgage Group through our London office to obtain a quick asset backed bridge loan on a property that had been in the family for more than three decades. Due to a death in the family and poor advice from an advisor, the property had received auction notice. Our clients needed to close a transaction within two weeks before the auction date. As their family members were based around the world they reached out for options.
Within the time period allowed GMG was able to not only secure the financing to pay off the existing lender to stop the auction, we also were able to give them additional liquidity which allowed them to bring current other debt.
GMG BRIDGING LOAN
TERM
One Year
Property Collateral
Residential Home valued at $18m
LOAN AMOUNT
$12.6m
LOAN-TO-VALUE
70%
EXIT STRATEGY
Sale of the property
KEY CONSIDERATION
Speed and certainty of funding
INVESTMENT PORTFOLIO OPPORTUNITY
Non-U.S. resident/Multiple property owner takes bridge loan out to acquire a distress portfolio opportunity
A Singapore based client with a large portfolio in the U.S. East Coast uses the equity in his properties to quickly access the cash needed to buy an off-market distressed portfolio of 18 homes.
Client was referred to GMG by his Private Banker to access liquidity quickly to purchase an additional portfolio below market value. GMG was able to obtain a bridge loan and funding within 6 business days. GMG also structured the refinance of all properties together into a long term portfolio loan within 3 months of the acquisition.
GMG BRIDGING LOAN
TERM
12 Months
Property Collateral
Equity cash-out of existing portfolio to purchase a distress portfolio
LOAN AMOUNT
$4.3m
LOAN-TO-VALUE
63%
EXIT STRATEGY
Portfolio loan against all properties once acquired
KEY CONSIDERATION
Speed of funding and clear and logical exit strategy presented by GMG
APARTMENT COMPLEX PURCHASE
Foreign National purchases large apartment complex in Texas
A foreign national client based in Europe purchased a 212 unit apartment complex outside of Dallas, Texas.
Client had the opportunity to buy a distressed apartment complex outside of Texas. He was a seasoned U.S. real estate investor. GMG was able to secure him a high LTV loan on a 12 month bridge. GMG assisted him with the bridge exit with traditional financing. Total solution.