Bankers South Finances a $600k Citrus Loan

Recently, Bankers South Lending & Finance, LLC funded a $600k citrus loan. By taking a global look at a Florida borrower’s finances, Bankers South was able to finance his citrus operation’s resets and improvements.

Through its special Transitional Lending Program, Bankers South provided this citrus grower financial support when no other banks could, allowing him to use the equity in his grove to expand his agricultural operation.

TRANSITIONAL LENDING PROGRAM

Bankers South understands that many solid, successful individuals or businesses face situations or opportunities the do not fit easily into the rigid structure of institutional lending. That’s why Bankers South offers the Transitional Lending Program – a program designed to provide non-conventional, fixed or floating-rate bridge loans on the following asset classes:

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

 

These asset-based loans, often called “hard money” loans, are based on collateral and can be used for a variety of purposes, including funding new real estate projects, paying off loans, or securing opportunities quickly. The low documentation process is often less time consuming than a standard bank loan and can be processed in as little as a week! Depending on lending needs, the loans can be accessed through an equity line or in a lump sum payout.

Like with all of its loans, Bankers South’s Transitional Lending Program strives to provide a personal, responsive service to all customers. With its own extensive experience buying, selling, and managing agriculture land, Bankers South understands the ins and outs of ag lending. The staff includes employees whose own farming histories stretch back generations. Suffice it to say, Bankers South not only offers ag lending solutions, but supportive, professional long-standing relationships as well.

Need cash to expand your citrus operation? Contact Bankers South to discuss your farmland financing solutions! 


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.


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.

Record Prices and Low Debt Ratios Spur Increase in Farm Loans

The news in farm lending these days has been nothing but rosy. Reuters reported recently that ag loans are up 14 percent to almost $82 billion last year. That’s remarkable considering the historic drought that struck much of the country and speaks volumes to the good times we’re seeing in agriculture.

Last year, farmers saw cash income of $133 billion, according to the Department of Agriculture. Those projections were at near-record levels thanks to high commodity prices at market and an increase in a demand for food globally – all good things for those in agriculture.

Even with all that lending last year, balance sheets remain strong. Farm debt-to-asset ratios are expected to fall 40 points this year to just 10.2 percent. This would be a record for farm credit and supports the idea that these high profit margins will continue.

For anyone who might have gotten lost with all those statistics, here’s the boiled-down version: High agriculture profits without a lot of debt mean good times for farmers.

This also means it’s a good time for farm operations to grow. Times of high profits and low debt mean farms can take on new agriculture loans to add acreage or buy equipment. At Bankers South, we employ experts at helping farmers plan for expansion. We’ll help you develop a strategy and come up with ag loan options to succeed at your goals.

For many farms, the best option is with AgAmerica loans, a program that competes with and often beats all other farm loan rates. For others, it’s a hard-money loan based on collateral. And some may choose an equity line where you can take out money as your operation grows.

Whichever you choose, you can take comfort in knowing now is the time to grow. With record profits and low debt ratios, there has never been a better time to be in agriculture.


Weddings, Tours, and a Winery Turn Farm Into Tourist Draw

It’s always good to see farmers who discover new ways to make an operation profitable. Oscar and Melinda Vizcarra of Becker Farms have one of those stories. According to this article, they also have a great slogan: “Get big or get out.”

How that translates for the Buffalo farmers was turning a farm that had nothing but a few cherry trees into an operation that draws millions of people a year. They did it by holding weddings on their property. They opened a winery and a brewery. And they added a you-pick-it apple vineyard.

Such additions to a farm would have been unheard of 40 years ago, and maybe even just two decades ago. Luckily people seem to have a new-found respect for farming, and that means farms have the new-found ability to be something of a tourist draw. Suddenly that unused piece of the back 40 could become a pick-your-own strawberry patch, or that old apple grove could become the path for hay rides.

If you’re wondering how a farmer could afford all those additions, that’s where Bankers South comes in to help with your ag lending needs. We specialize in all kinds of agricultural lending, from ranch financing, to timberland loans, to citrus loans.

For many farmers, our AgAmerica program is the way to go. Rates are comparable or lower than any other farm loan rates, and there’s often far less paperwork than similar commercial farm loans.

There’s also the option to refinance an existing ag loan in order to take equity out of a piece of property. This allows many farmers to fund needed repairs or to expand operations.

We also offer traditional lending options, or hard money loans, that often allow farmers to add new equipment or property. You can imagine a farmer, like that couple from Buffalo, using this type of loan to build an on-site brewery or a gazebo to hold weddings.

In that article, Oscar Vizcarra said his secret is listening to customers, sometimes walking among them without saying he owns the place. He said: “Nobody knows who the owner is. I wear my jeans. I do my homework. I’m sensitive to what people want.”


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