Hard Money & CMBS Closings

A Private or Hard Money Loan is somewhat of a risky process in which all parties involved should seek the assistance of a Florida business and real estate attorney.

At Gulati law we aim to inform, educate and negotiate by using the most favorable legal practices to assure all parties involved in a Florida hard money loan are protected.

  • What is a Hard Money Loan?

A hard money loan is an asset-based loan collateralized by one or more assets that are commonly real estate.

With a private loan the interest rate is usually higher generally because lenders have the unique capacity to close fast (which is usually why the loaner sought the private loan to begin with).

Private money lenders fund commonly by a network of wealthy, private individuals or companies.

When to use a Hard Money Loan?

Hard Money Loan can be used:

  • To prevent foreclosure
  • As a construction bridge loan
  • To fund project that a traditional bank would not fund.

Moreover, these hose deals close in as fast as 24 hours which is a short due diligence period that permits the borrowers to act fast on fleeting deals.

  • What is a Transactional Funding?

 Transactional funding is a short-term loan that is used to support a back-to-back closing transaction.

back-to-back closing is basically two closings: the acquisition and pursuant resale of a property. These two closing are settled to take place one after another.

Using Transactional Funding is advantageous because it does not require a credit check and income verification. The only thing required by the lenders is that the investor already has a buyer. The buyer has to sell the property right after they buy it, if they do not have a buyer lined-up, the lender will not fund the deal.

At Gulati Law we have access to not only private and hard money lenders but also the criteria and legal parameters needed for a successful hard money loan transaction.

 

 

COMMERCIAL MORTGAGE-BACKED SECURITIES (CMBS)

 

Over the past 20 years, Commercial Mortgage-Backed Securities have been the major source of commercial real estate financing and they still play an important role in the Florida real estate market.

At Gulati Law we provide insight and assistance to clients in obtaining a commercial mortgage-backed security in Florida.

What we can do to help in the process:

  • Refinancing (negotiate and close the loan transaction)
  • Pre-negotiations & Foreclosure
  • Lender and Investor Sourcing
  • Modification Of agreement (negotiate them and secure data and documentation)
  • Discount Pay-off and note purchases arrangements
  • Recapitalization & Prepayments
  • Foreclosure/Shareholder Litigation
  • Restructuring & Liquidation

 

Contact us today to learn more about what we can do to help you with a Commercial Mortgage-Backed Security in Florida.