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The following are brief synopses of some of the loans funded by CFS.
A middle-aged couple owns two day-care centers in rapidly developing areas. They also own the real estate housing the centers, and they have a beautiful golf course home where they reside.
Deciding to step back and enjoy life a little, they entrusted the businesses to a manager and they became absentee owners. The manager did a poor job and the owners found the businesses delinquent on the mortgages and owing both state and federal back taxes.
They were brought to CFS by their accountant who had worked out a new business plan to cut costs, increase enrollments and to pay off debtors. They needed refinancing however, which they were not able to obtain from conventional lenders.
Their real estate has value and Cambridge Financial was able to loan 65% of that value. In addition to the business real estate, CFS also took a trust on their personal residence which had good equity.
They followed their business plan and were able to stabilize the business. They have been timely on their mortgage payments to CFS for over a year and it is expected that they will soon be able to refinance conventionally at a more competitive rate.
A successful North Carolina developer owned a large commercial property in Missouri which it had acquired prior to developing in North Carolina. Knowing it was not going to use the Missouri property, it sold the complex for $2,400,000. The purchasers were obtaining financing through a government program which took some many months to put in place.
In the meantime, the Developer was in need of funds to continue his North Carolina ventures. North Carolina lenders were reluctant to lend on property in Missouri and Missouri banks were just as reluctant to lend to North Carolina developers. Additionally, as is often the case, the Developer needed funds immediately and did not wish to go through the 60-90 day process that the commercial lenders would have taken.
In looking into the situation, Cambridge Financial found that there was not only a primary contract on the Missouri property but that there was a back up contract for just slightly less than the first one. Additionally, CFS talked to two appraisers who verified that the property was worth in the $2,000,000 range. Further, the property had tenants who wanted to buy it but who could not afford the price. They would have paid $1,000,000 or so. Finally, there was an existing first trust on the property of approximately $400,000. The individual holding that first trust had agreed to subordinate to a new first trust.
Cambridge Financial loaned $600,000 secured by a first trust on the Missouri property. The pending sale closed 6 months later and CFS was paid out. This, in effect, was a bridge loan that worked out well for all parties.
A young couple had purchased 5 acres of land to build a house. They had contracted with a modular home company to build the house and deliver it to the site. The company would not start until the couple showed proof that they could pay for the house. The couple needed financing. The banks they talked to were reluctant to finance because they had no general contractor (they were doing their own contracting). They still owed money on the 5 acres and they were not sure what their overall costs would be. They were in a "catch 22" situation.
Cambridge Financial found that the husband's mother had real estate and was willing to help them. She was even willing to put some cash into the venture if necessary.
CFS agreed to loan the couple 65% of the projected value of the finished house on the first deed of trust with the following stipulations: The first trust holder would have to subordinate to the CFS loan. The husband's mother would have to co-sign the note. They would have to install both the well and the septic system before CFS could make the loan. CFS would hold in escrow for them the amount of funds needed to pay the modular home company and would agree to release these funds to that company at such time as the couple obtained the certificate of occupancy for the house.
Mom put some cash into the project for such items as well and septic system. The house was built, delivered and set. The occupancy permit was granted. The funds were released and the couple was able to refinance at a better rate about 6 months after completion.
A young man inherited a piece of property in a metropolitan area. He had always been interested in cars and he wished to start a business involving specialized auto parts. He needed about $35,000 to start his business.
The banks were not interested in loaning him money to start a business since there was no proven track record. They wanted only to know how he might repay the loan from other income if the business should fail. He had no other income if he were to get into this business.
Cambridge Financial met the man and saw his property. He impressed Cambridge and the property appraised for $75,000. CFS verified that the appraisal was a good one. CFS loaned the man $35,000 on a first deed of trust against the property. He currently makes his living at his new business and he has never been a day late on his mortgage.
A builder, developer with lots of property and marginal cash flow had an opportunity to buy a house and land at a really good price. He had to act in a hurry and, since the house needed work, he was not able to get a good loan from the banks.
CFS was able to loan him funds to both purchase the property and to do the necessary fix-up. These funds were secured by the property and represented less than 65% of the value after the renovation.
The property was bought and renovated as planned and the investor was able to refinance conventionally within a 90 day period.
1818 Roberts Street, Winchester, VA 22601 (540) 662-8350 (voice) (540) 662-8350 (fax)