Bankers South Provides $10 Million of Debt Capital to Bay Communications II

Bay Communications II, LLC recently announced the closing of a $10 million debt facility to support the continued growth of the company’s tower development portfolio. Based in Mansfield, MA, Bay Communications II develops, constructs and operates cell phone towers in the northeastern United States. Bay Communications II is backed by equity partner Seaport Capital, who initially invested in the company in 2011.

Jim Riley, CEO of Bay Communications, said, “Closing a debt facility with Bankers South will help allow the company to execute on its strategic and tower development objectives. I appreciate Bankers South’s confidence in the company and the assets Bay has developed to date. The company has a significant pipeline of tower development opportunities and I am pleased that we identified a financing partner who is going to help it achieve its goals.”

Our Managing Member of Bankers South, Brian Philpot, said, “We are pleased that Bay Communications and Seaport Capital had the confidence in Bankers South to provide a debt facility to support the company’s continued growth. We are impressed with the company’s existing collection of tower assets and are excited about its growth potential.”

Bob Tamashunas, a Principal of Seaport Capital, said, “We believe we found the right debt financing partner to assist the company in realizing its development goals. We appreciate the relationship we have developed with the Bankers South team and look forward to working with them in the future.”

ABOUT BAY COMMUNICATIONS II

Founded in 2011, Bay Communications II develops, constructs and operates cell phone towers in the northeastern United States. The company’s principals have decades of tower investing experience and relationships with all of the major wireless carriers. Before Bay Communications II, the principals of the company operated Bay Communications I, which was sold to SBA Communications in 2009.

ABOUT SEAPORT CAPITAL

Founded in 1997, Seaport Capital provides capital to middle market companies in the communications, information and business services sectors. Seaport works with talented management teams to create valuable companies that are leaders in their market segments. Seaport’s substantial investing experience enables it to develop winning strategies; its relationships and resources help achieve them. Seaport is an experienced investor in the tower development industry. Bay Communications represents the company’s fourth investment in the sector. The firm seeks to invest $5 to $25 million of equity capital in each portfolio company.

ABOUT US

Bankers South Lending & Finance, LLC, a subsidiary of Land South Group of Lakeland, Fla., is a nationally licensed and regulated lending company. We offer a variety of loan products including communication tower lending, bridge loan financing, ranch financing, farmland financing, and ag lending. By providing a reliable service and more flexible rates and terms than traditional banks, we are able to lend across America, and provide lending facilities that are customized to fit a client’s needs. We have a team with over 100 years of combined lending experience. One of our goals is to provide the needed capital to expand communication tower companies to help further their growth.


What is Hard Money?

Even if you are incredibly new to real estate investment, we bet you’ve heard the term “hard money.” Yet odds are, you know very little about how hard money actually works.

That’s why we’ve put together this quick introduction to hard money loans. Read on to better understand these loan types.

Who lends hard money?

Hard money loan lenders are typically private individuals or small groups, such as Bankers South. Here at Bankers South, we lend money based on the value of the property; NOT solely on your credit score, assets, or income.

Who borrows hard money?

Developers and real estate investors typically turn to hard money loans to finance a project or property quickly. Investors can borrow up to 50% the purchase price of the property, though this usually must be backed up with collateral. So, if you’d like to purchase development property or finance agricultural land, and you can’t do so quickly (or at all) with conventional financing, a hard money loan might be the best approach for you.

As mentioned, these loans can be acquired readily – sometimes within a matter of days (7-14 days) – as opposed to loans from traditional lenders, which will extend the process of securing an ag loan or real estate loan for up to a month or even longer.

What’s more, you are guaranteed a professional, individualized experience when dealing with an ag lending company like Bankers South. Here, investors work directly with one of our knowledgeable lenders, rather than a big processing team, thus bypassing the entire loan committee or underwriting processes common when dealing with a conventional lender.

Hard money loans are usually best suited for short-term investments – flips, rehabs, or initial purchases. Borrowers commonly use hard money to function as a bridge loan – a short-term loan intended to hold the investor over until the property is ready to be sold, developed, or until traditional funding can be secured.

The beauty of these loans is that they are quick and completely based on collateral – not personal financial status. This makes these loans very attractive in the eyes of investors.

Need quick financing for a new property? Financing agricultural land? Contact Bankers South to discuss whether a hard money loan is your best option to kick-start your project or operation.


5 Advantages of Bridge Loans for Investors

Bridge financing, as the name suggests, serves as a “bridge” to another transaction. In our case, these loans have assisted real estate projects and have also allowed borrowers to pay off loans or take advantage of new opportunities quickly.

Bridge loan financing is a smart alternative for borrowers when traditional lenders are moving too slow or are too rigid. Hard money lenders, like Bankers South, offer speed, a professional service, and convenient short-term financing, helping investors to take advantage of great opportunities that do not fit easily into the tight structure of institutional lending. Regardless of if you’re a seasoned borrower or a newbie, Bankers South is here to assist you.

Through our Transitional Lending program we offer these non-conventional asset-based loans, often called hard money loans, which are based on collateral and can be beneficial for a variety of purposes.

5 Advantages of Bridge Loans:

  1. You do not miss out on an opportunity when a traditional lender (i.e. a bank) cannot close the deal in a timely fashion. Bridge loans are fast. When time is of the essence, a Bankers South bridge loan can make all the difference in securing an opportunity.
  2. The bridge loan holds you over until the property is sold. If you need to sell your investment property now, but know it may take a few months on the market to sell, a bridge loan is a great option.
  3. You can buy out an investment partner. Paying off a partner who is no longer interested in the real estate investment/partnership can have long-term benefits.
  4. Flexible payback may be an option. Proving adequate income to repay the debt is one of the requirements a borrower must meet. However, there is an option of utilizing an interest reserve if there is sufficient equity in the property to grant a larger loan.
  5. There are no concrete specifications for a bridge loan, as there are for conventional loan types. The bridge loan is provided by the lending company based on their own judgment and if it makes sense.

 

With our simple and competitive bridge loans, you have the advantage to respond quickly to business opportunities. Contact Bankers South for more information regarding Florida hard money loans and our Transitional Lending Program!


BANKERS SOUTH GIVES WATERMELON FARMER FRESH START

Recently, here at Bankers South, we funded a quick, turnaround bridge loan of $600,000 to get a South Florida watermelon farmer the funding needed to jump-start his agricultural operation. Through our special Transitional Lending Program, we were able to provide the fast and flexible funding this farmer needed to kick off his watermelon season and get to planting on schedule!

What is our Transitional Lending Program?

Our Transitional Lending Program provides funding from $100,000 to $100 million and allows borrowers, such as this watermelon farmer, the ability to receive the fast and flexible funding needed when opportunities or situations arise. The low documentation process is often less time consuming than a standard bank loan. For example, this recent loan, traditionally taking up to six weeks or more to finance, took us approximately four weeks to finance.

We offer our Transitional Lending Program for non-conventional, fixed or floating-rate bridge loans – often called “hard money” loans – on the following asset classes:

  • Vacant Land, including Ag and Timberland Loans
  • Investment Real Estate Loans
  • Commercial Real Estate Intermediate Loans
  • Other Consumer Loans secured by approved collateral
  • Refinance/Debt Consolidation

 

Managed by a skilled team with over 80 years of combined ag lending experience, we have the strong loan underwriting and property appraisal experience to ensure that financing is completed in a swift, steadfast fashion. Depending on the type of ag loan, funding can take as little as one to three weeks to complete. Rest assured, we offer real financing solutions when time is of the essence!

As a licensed Florida Mortgage Lender and licensed Florida Consumer Finance Company, Bankers South accepts, underwrites, funds, and services the loans it makes. Bankers South provides a variety of loan products, including conventional agricultural real estate loans through its AgAmerica Lending Program and non-conventional, fixed or floating-rate bridge loans  through its Transitional Lending Program. To discuss our agricultural loans or refinancing options visit www.bankerssouth.com.


How to Secure Hard Money Loans

As mentioned in our last post, hard money loans offer entrepreneurs and businesses options when quick funding is required to finance a special project (usually with a quick closing date) – a project that more rigid, institutional lenders (banks) cannot efficiently and swiftly provide. That all being said, it’s important to be a prepared borrower when applying for any loan type from any institution.

Certain factors definitely influence the ability to secure hard money loan approval.

For example, the type of project matters. Hard money is collateralized with the property in question. Thus, finding prime property (i.e. good location, good type of land, etc.) is of importance to hard money loan lenders. Other factors that may or may not be weighed include cash on hand, a decent credit score, cross collateral, and real estate investment experience. Also, it’s important to be highly communicative on your end. Be on top of things. Return calls promptly. All of this ensures that you get the right funds at the right time.

Beyond this, it’s important to do your research and have a plan of action. Know the area you want to invest in. While hard money loans are primarily secured with the property, it may still be helpful to round up all of your relevant documents because you may be asked about credit, income, and assets. It’s simple: Be prepared. Talking to a contractor is also incredibly helpful to really get a sense for the repairs the property requires.

Lastly, have a solid strategy for either selling or refinancing your property before the term ends. Knowing how you plan to repay the loan is a core factor in a hard money loan lender’s approval decision.

If you cover these bases, you should have a relatively smooth time securing the funding you need to jump on this special project!

Need funding fast? Contact Bankers South! Through our Transitional Lending Program we offer non-conventional, fixed or floating-rate bridge loan types to finance special opportunities quickly. 


2 Myths About Hard Money Loans

What do you know about hard money lending? Do you have the facts straight?

Truth is, very few people, including businesses and borrowers, have the facts straight when it comes to hard money loans. Without this awareness, many misconceptions are floating around out there about businesses that offer and receive these loan types.

  1. MYTH: Borrowers seek hard money loans in moments of crisis.

    This is not the case. Individuals that seek hard money loans are by and large successful, solid entrepreneurs or businesses that require quick funding to finance a special opportunity (usually with a quick funding date) that more rigid, institutional lenders cannot efficiently and swiftly provide. The hard money method is a more convenient path in these impromptu situations because private lenders can deliver funding fast and be more flexible in structuring transactions. Asset-based lenders, like Bankers South’s Transitional Lending, review the collateral as the ultimate source of repayment rather than the borrower’s competence (income, expenses, credit history, etc.). As a result, private lenders make it easier for self-employed individuals and businesses without an established track record and borrowers without an immaculate credit history to get the funding they need when they need it.

  2. MYTH: Hard Money is too high-priced.

    Sure, hard money is generally more costly than funding options from traditional lenders, i.e. banks. However, in many cases, going with a hard money lender will actually be less costly for the borrower. For example, say a borrower is working with a traditional lender that won’t provide secondary financing. Say that borrower is without the equity the bank requires without secondary financing. This would mean that said borrower would need to bring in an equity partner – a more costly option than going with the alternative option: Going with a hard money loan lender.

 

Through our Traditional Lending Program, we offer non-conventional asset-based loans, i.e. “hard money” loans, based on collateral. These loans, as mentioned, can be used for a variety of purposes. Some of our clients have used our Transitional Lending Program to fund new real estate projects, pay off loans, or take advantage of an opportunity quickly with a bridge loan. We understand that a large amount of our borrowers are solid, successful individuals or businesses that are in a situation, or are presented with an opportunity, that does not fit easily into the rigid structure of institutional lending. That’s where we come in, offering you real salutations when special situations arise.


BANKERS SOUTH FUNDS QUICK TURNAROUND LOAN

Here at Bankers South Lending & Finance, we provide a variety of loan products, including quick, turnaround loans. Recently, we funded a quick, turnaround bridge loan of $115,000 to finance a beach condo through our Transitional Lending Program.

What is the Transitional Lending Program?

Our Transitional Lending Program provides funding from $100,000 to $100 million and allows borrowers the ability to receive the fast and flexible funding they need when opportunities or situations arise. The low documentation process is often less time consuming than a standard bank loan. For example, this recent loan, traditionally taking up to six weeks to finance, took us less than two weeks to fund – an impressive, unmatched turnaround.

We offer the Transitional Lending Program for non-conventional, fixed or floating-rate bridge loans – often called “hard money” loans – on the following asset classes:

  • Vacant Land, including Ag and Timberland Loans
  • Investment Real Estate Loans
  • Commercial Real Estate Intermediate Loans
  • Other Consumer Loans secured by approved collateral
  • Refinance/Debt Consolidation

 

As a team with over 80 years of combined lending experience, we have strong loan underwriting and property appraisal experience to ensure that financing is completed in a swift, steadfast fashion. Depending on the type of loan, funding can take as little as one to three weeks to complete. Rest assured, we offer real financing solutions when time is of the essence!

Bankers South Lending & Finance, LLC (“Bankers South”), a Land South Group Company, is a money lender and mortgage investor based in Central Florida. As a licensed Florida Mortgage Lender and licensed Florida Consumer Finance Company, Bankers South accepts, underwrites, funds, and services the loans it makes. Bankers South provides a variety of loan products, including conventional agricultural real estate loans and non-conventional, fixed or floating-rate bridge loans through its AgAmerica Lending Program and Transitional Lending Program. Visit our website for more information: www.bankerssouth.com.


Florida Lending Continues to Climb

Though Florida interest rates are climbing, lending institutions are not taking a hit. Borrowers are still flowing in, willing and ready.

Here’s the numerical proof: According to recent 2013 data, lending in Florida has increased by $5.8 billion, or 6.5 percent, outdoing the 2.9 percent U.S. gain. That’s a pretty substantial gain.

Florida is clearly enjoying a unique phenomenon. In fact, the state’s banking industry is surpassing the entire nation, outranking all states.

Though mortgage rates are on the rise in Florida, housing demand has not dwindled according to certain indicators, including average sales and inventory trends. Yet, home buying is not the exclusive factor accounting for Florida’s uphill lending trend.

What, then, is fueling Florida’s lending increase?

As mentioned, home buying plays a role, but a very minor one. Not many home buyers are seeking loan assistance. Data suggests that home buying is probably increasing due to a higher percentage of cash purchases due to the higher-priced markets. So, home buying is not a strong game changer in the Florida lending industry. Commercial and industrial lending, credit cards and auto loans, are the proposed game changers strongly accounting for this uphill lending trend. Real estate loan growth, however, has been consistently low.

It’s hard to say how this high-priced market environment will impact banks. On one hand, it will make borrowing more expensive for banks. Yet, banks have the power to counteract this by increasing their loan rates. Striking a balance is necessary, though difficult.

Moral of the story: Florida financial lending intuitions are doing well, amidst an environment that generally limits borrowing. How this will play out long-term is difficult to predict. Yet, so far, so good for lenders and borrowers.

Based in Central Florida, Bankers South Lending & Finance, LLC (“Bankers South”), a Land South Group Company, is a money lender and mortgage investor. Bankers South provides a variety of loan products, including conventional agricultural loans, timberland loans, and commercial farm loans, and non-conventional, fixed or floating-rate bridge loans on asset classes such as Agriculture and Timberland, Residential Development Land, and Transitional Commercial Assets. Contact us for our ag lending services, information on Florida asset-based loans, and more!  


Hard Money Loans: 5 Facts Investors Should Know

As a hard money lender, Bankers South offers the Transitional Lending Program for non-conventional, fixed or floating-rate bridge loans on the following asset classes:

  • Agricultural Land and Timberland
  • Residential Development Land
  • Transitional Commercial Assets
    • Office
    • Apartments
    • Industrial
    • Retail
    • Hotels
    • Student Housing
    • Public Storage
    • Medical Offices
    • Existing performing and non-performing loans

It’s important to know that hard money loan lenders operate rather differently than traditional lenders. As private lenders, the terms and guidelines that hard money lenders follow are unique to that particular institution.

Here are some quick, simple facts all borrowers should know regarding hard money loans:

  1. What is a hard money loan? A hard money loan is a loan in which the investor receives financing based on the value of a property as opposed to the traditional lending conditions that banks typically assess such as credit scores, tax returns, and income statements.
  2. What are residential hard money loans? These are short-term bridge loans for investors who need to close swiftly. They are good for real estate acquisitions, refinancing, and foreclosures.
  3. What are the interest rates like as compared to traditional lending? Hard money loans usually carry higher interest rates because hard money lenders are not directly competing with traditional lending sources. However, these loans will usually keep borrowers from going into bankruptcy and foreclosure, thus saving their property.
  4. How secure is the investor? Bankers South hard money loans are secured by a property with 30% -50% equity, so the investor is well protected.
  5. Having difficulty finding traditional financing in time to save your investment property? A hard money loan may be your solution if your credit is less than perfect. Sure, the interest rates are higher, but you have the power to act fast and secure your investment property so you can flip and receive your profit.

 

Do you have more questions on hard money loans? Contact Bankers South Lending & Finance
for additional information regarding our Transitional Lending Program.

Transitional Lending to Avoid Foreclosure

Are you a developer or land owner at risk for foreclosure or bankruptcy? If so, it’s time to explore your financing options to safeguard your properties.

Losing property is distressing. The financial repercussions are especially poignant. For instance, if you have a foreclosure in your credit history, you will experience great difficulty purchasing additional property down the road.

Fortunately, there are ways in which you can effectively navigate financial challenges to avoid losing your land.

Developers who are in the throes of losing property through foreclosure can find help getting back on track through Bankers South’s Transitional Lending program. We offer eligible property owners a plan of action in the face of a pending foreclosure. Qualifying developers or land owners can apply for a bridge loan to help them keep up with payments and preserve ownership. This bridge loan will hold developers and property owners over until sales inevitably pick back up. Once they do, owners can then apply for long-term, conventional financing.

Additionally, there are some simple actions land owners can take to better the case for keeping their property. If you are at risk for foreclosure, follow these steps:

  • Do not ignore contact from your bank. If you’re having issues making your payments, get in touch with your lender as soon as possible. Explain your situation. Be ready to provide them with financial information, such as loan documents, tax returns, etc. Without this information, they may not be able to assist you.
  • Do not desert your property. You may not qualify for assistance if you abandon your property.

 

If you need help with a pending foreclosure on vacant land or other collateral, Bankers South’s Transitional Lending Program is your source for professional, trust-worthy assistance! We will meet with you and explain all foreclosure prevention strategies available to you to save your property and stay on track.


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