This rather straightforward transaction underscores the value of a solid, private money lending relationship to high net worth sponsors. We cannot tell you how many times we’ve been asked, “Why would an 800 FICO, high net worth borrower need to work with a private money lender?”
As a direct portfolio lender, one of SFG’s core strengths is highly responsive bridge or transitional financing, coupled with the ability to provide financing solutions not typically available at today’s banks. In this case, we were presented with the refinance of a maturing seller-carryback loan on two high-end residential lots in Palm Desert’s exclusive community of Bighorn. The sponsor required short-term financing to retire the existing debt while developing plans to build two luxury spec homes. Their available capital was much better utilized within their primary business, and banks have all but forgotten how to finance high-end lots, let alone provide spec construction financing on what will be $5m+ homes. They have also forgotten how to provide $3m “next Thursday” to allow a strong sponsor to capture a terrific, time sensitive opportunity.
During SFG’s 25+ years in business, we’ve become very familiar with many of the West’s core residential submarkets…and we recognize the value of providing the best in private money financing, services and pricing for today’s high net worth investors and clients. SFG knows Bighorn, we quickly underwrote and closed the subject transaction…and we’re capable of providing the construction financing for two fine, unique, custom homes when the time comes.
Our thanks to Trevor Printz of Bighorn Properties and Valery Neuman of Hom Sotheby’s International for their in-depth knowledge of the Bighorn sub-market and their helpful assistance in the valuation process.
