Acquiring Real Estate
When retired architect Rob F. found a four-acre lot on which he could build four homes, he knew he had uncovered a promising investment opportunity and wanted to take advantage of it. He turned to his bank for the capital needed to pursue the project.
Though he paid for several promising appraisals over a period of months and was willing to put up a 40% deposit and pay 5% interest on the loan, the bank rejected him. Their rationale: though he had 35 years of experience as an architect, he had none as a builder.
Within seven days, Lendacy arranged an investor relationship credit line that allowed Rob to fund the transaction at a rate well below prime so liquidating his assets was unnecessary. He was able to keep them working, generating dividend income and interest sufficient to pay insurance and taxes on the property in addition to the interest on his credit line.
Today, the properties are built and Rob is realizing a healthy positive cash flow.