Avatar's Blog

» Income to Expense Ratios in Hard Money

Posted on 4/5/2005

Avatar Financial Group funds commercial bridge loans (aka hard money loans) that make sense for Avatar and for the borrower. The principals want to see that the borrower entity (company or individual) is grossing at least 1.2 times the monthly expenses. This provides some assurance that the borrower can put a few dollars into his/her pocket at the end of each month and, in the event that a problem arises in the business, they are able to overcome the obstacle and continue to make monthly payments on the loan.

Avatar does not want to put anyone out of business. Avatar loans have to make sense for both the borrower and the lender.

Posted in Miscellaneous