Avatar's Blog

1031 rollovers are a great way to exchange real estate properties without exorbitant tax ramifications. By selling one property and investing in another like kind property of equal or greater cost, investors can realize significant tax advantages while improving their real estate portfolio.

The problem with a 1031 rollover is the short timeframe in which to complete the sale and purchase of properties. Even if the new property to be purchased is identified in advance of the sale of old property, banks and conventional mortgage lenders can take so long to close a loan that the window of opportunity can pass, resulting in huge tax cuts into the profits for the investor.

Hard money commercial bridge loans from Avatar Financial Group have saved the day for many investors over time. Avatar is able to close 1031 exchange purchase bridge loans in as little as two weeks from the time the investor signs the Letter of Intent and remits the costs of due diligence. If you have a 1031 rollover closing problem, contact Avatar Financial at 888-886-0097 or gillian@avatarfinancial.com for assistance.

Avatar Financial Group is a commercial bridge lender, but we are also able to fund the purchase or refinancing of residential properties in the states of Washington and California. If the property is 'close to home' in or near the Seattle area, we can also waive the minimum loan requirement of $500,000.

Contact Avatar to see if your property qualifiies at 888-886-0097.

Commercial mortgages differ from residential mortgages in many ways - different kinds of lenders, generally higher risk and therefore higher rates, and higher loan amounts. Avatar fits into the niche of non-conforming loans - when a commercial mortgage broker or banker can't make your loan work, due to timing issues, risk or other factors, Avatar can step in to save the day.

The loans we provide, however, are short-term and are designed to be bought out by a loan at a lower rate from a standard commercial mortgage lender in the future. Although our loans and terms are exceptionally flexible, the maximum we can lend out for is 3 years.

Avatar Financial Group offers commerical bridge loans for the purchase (or refinancing) of commercial real estate. Commericial real estate is defined as any real estate property which is used for commercial / business purposes. Therefore, investment residential real estate qualifies for a commercial bridge loan.

Business owners who wish to occupy a commercial building, whether they rent out a portion of the real estate or not, qualify for commercial bridge loans at Avatar Financial Group. Commercial properties, such as apartment buildings, single family dwellings and other residential properties can also qualify for commercial bridge loans, as the owners of the property are investors and intend to profit from the venture.

If you have a commercial real estate property, inquire at 888-886-0097 about whether you qualify for a hard money commercial real estate bridge loan.

Some of Avatar's most oft-funded properties through our hard money programs include the following:

 - Golf Courses
 - Shopping Malls
 - Commercial Highrises
 - Residential (condo/townhome) Complexes
 - Gas Stations
 - Large, Private Second or Third Homes

We accept loan applications on hundreds of types of properties, but this sample can give you a good idea of what can be used as commercial real estate to back your loan.

Every hard money commercial bridge lender has their own critiera for reviewing, approving and funding loans. However, there are some standards and commom items that are reviewed by decision makers. Whether you work with a broker or submit loans on your own, optimize your chances of getting your loan funded by making it interesting to potential lenders.

Here are some tips that will help you get past the hurdles of the initial review of your loan application:

#1
Submit photos with your initial loan application
If you are filling out at online form, send an email to the company referencing the information you put in the online form and attach photos to be reviewied at the same time as the form. Loans accompanied by photos are funded at a rate of better than 2 to 1! Pictures really are worth a thousand words. In your case, they may be worth thousands or millions of dollars in funding in a timely manner!

#2
Submit brief financials or at least a clear executive summary with the loan app. Follow the same instructions as with the photos - add them to an email and reference the information you submitted in an online form. If the lender knows that the loan makes financial sense for you, you are more likely to get to the next stage of review. Without an idea of the gross income, expenses, and net for the borrower or borrower entity, the lender is left to wonder whether the loan can be paid back. Don't leave that to the lender's imagination! Send breif, clear financials to prove that the loan makes sense.

When funding hard money loans, lenders want to know the exit strategy for the borrower. Hard money loans are bridge loans - they are designed to be in place for about 1 - 3 years. They bridge the gap between the end of construction and profitability or help a company or investor over a cash flow hurdle. They may be used becuase the borrower's credit scores are insufficient to be funded by a conventional bank or the property doesn't meet banking critieria in its current state. Whatever the reason for your hard money bridge loan application, be clear and concise about it when you submit your initial loan application.

Provide the reason why you need a hard money bridge loan and the strategy you have in place to replace that bridge loan with a conventional long term mortgage (also known as a "take-out" loan). Include a timetable for your strategy.

With a logical reason, clear strategy, and timetable for exit, the lender is far more likely to consider your loan request.

Hard money loans are based on the borrower's equity in real estate. The value of the real estate is established by an appraisal ordered by the hard money lender. (Here's an important tip! Do not order an appraisal on your own. The hard money lender must order the apprasial. If you order one on your own, you will only end up paying twice!)

While the loans are based on equity in real estate, Avatar Financial Group and other hard money lenders do pull your credit scores to take a look at your financial history. In most cases, it doesn't matter whether you had a bankruptcy or even if you are currently in bankruptcy. The hard money lender garners other information from your reports, such as the kinds of credit you have and have had, the credit limits, current obligations and more. If some of the loans on your credit report are loans that will be paid off by the proceeds of the loan, it might be expedient to note that in your application.

Avatar Financial Group is one of only a few commercial bridge lender who will fund RV Parks and similar types of recreational real estate projects. The company has funded golf courses as well. Conventional and many hard money commercial bridge lenders see golf courses and RV Parks as having too few improvements / land. The ratio is an important factor in determining whether the property meets lending criteria.

If you have an operational RV Park, contat Avatar Financial Group (Gillian) at 888-886-0097 to discuss the specifics of your commercial bridge loan. If the income is sufficient to warrant the loan, the company can often lend up to 65% LTV on your property.

Although Avatar prides ourselves on speed, we are very flexible when it comes to closing deals. Once a term sheet has been issued and the property has been inspected (with the aid of the closing costs check), we can fund immediately. However, paperwork, legal assistance and unexpected delays come up all the time.

In general, term sheets are offered with a term of 30 days. If you choose to take the loan, it should be closed within that time period. However, in some cases, Avatar is flexible enough to hold your funding for several months, if need be. Our institutional backing means that your loan money will not dissappear and funding can still be completed ,even if the target dates have passed. Additional inspections or work may be needed if significant time has passed.