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The Road to Stability is Paved with Good Financing.
To give troubled properties a chance to prove themselves, the Bridge-to-Stability™ product was introduced. This product ignores the past and concentrates on determining if the reason for the liens or loan defaults has been resolved. If the investment property or business property now needs to eliminate current debt holders or liens, this loan product acts as a temporary bridge to better financing.
These interest-only loans are usually for six months to three years and are twice as expensive as bank financing and half the cost of venture capital. It is a product that serves the need of a larger number of business and investment property owners than one may think. The transactions are underwritten based primarily on the cash flow of the property. The value of the property is discounted significantly by this product to adjust for the risk inherent in providing capital to cure problems arising from past activities.
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