We are able to do a number of types of loans we consider of good quality but often or not favored by certain banks or the regulators. Some examples are:  

Cash Out Loans. If we are satisfied with the collateral and the borrower, we do not mind the borrower taking funds out of the loan closing for use in another project or for some other use.  

Multiple Renewals.  We are often approached by a borrower who has been current but has renewed a note for two or three times and the bank desires the loan to be moved. We have seen occasions where other banks are reluctant to consider these but they are often a desired loan for us.  

Time Sensitive Loans.  We are able to commit and fund quicker than the commercial banks because of our small committee system and the fact that we do not require an appraisal. We are often called upon to consider a loan that the bank or other lending institution has rejected at the last minute with maybe two weeks or so left before the required closing date. We do not consider a bank rejection to be a problem as long as we like the proposal.

 

Single Family Lot Investments.  We are active in this market of Off Balance Sheet Financing.  We will purchase the fully completed single-family lots once they have all city approvals and are under contract to a financially responsible homebuilder that has approved all of the lots. Our Lot ownership position assumes the financial and market risk from the developer through the Takedown Period or, allows Builders to convert their purchase of Lots to a takedown where only a bulk purchase is available from a developer. We typically structure the transaction with the builder(s) responsible for mowing, maintenance, and taxes on the lots. We look for a deposit from the homebuilder of ideally 15%, which we prefer to be in cash released to us but we will consider letters of credit.

 

Typical/Recent Transactions.
Bulk Purchases of 95 Lots in the Grayhawk Addition, Frisco, Texas, under contract to Newmark Homes;
76 Lots in the Tuscany Estates Addition, Irving, Texas, under contract to Ryland Homes;
68 Lots in the Wheatland Estates Addition, Dallas, Texas, under contract to Choice Homes;
126 Lots in the Park Trails Addition, Princeton, Texas, under contract to Holiday Homes and Serenity Homes.

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