My clients just had some bad timing when it came to having the issues they had. They had some IRS issues along with some credit issues, mixed in with some liquidity issues (they were cash-poor). At the same time, their note with the bank for their 8 unit building was coming due. Needless to say, the bank was not going to renew the loan with all these existing problems.
Now they were scrambling to find a home for this note for the place they called home for their entire life! Pretty stressful to say the least! My client also was a captain of his own charter yacht business on Lake Michigan and was renting a boat currently. He wanted to purchase his own ship so he could make some serious money at his business because it was really taking off.
What I was able to do is secure a bridge loan in the amount of 900K for two years. This would give them time to fix all their current issues and put them in a good position to be able to refinance with a long-term lender down the road.
This bridge loan actually accomplished four things for them that were huge. First of all, it paid off the bank. Secondly, they were able to get enough cash-out as to pay off the IRS, Purchase that Yacht, and have a 6-month reserve because money was really tight!
This loan was exactly what they needed at a very scary time in their lives. I think they will be fine going down the road and we will refinance them when it is appropriate into a long-term instrument. I Love HAPPY ENDINGS!