SUCESSFUL CLIENTS

A solution with only speed in mind
This client owned a condominium as a second home in Palm Springs. Although she had not been looking, she found a different condo that was an upgrade from what she was currently in, at a price she wanted to pursue.

However, the sellers of the upgrade condo wanted to close as soon as possible. They gave the client fifteen days to respond, after which time the purchase price would increase by $10,000. This client needed to act quickly or this opportunity would be lost.

The client knew that traditional banks and lenders would not be able to process a loan as fast as she needed. Having done several refinances with MBR, she was familiar with the kind of solutions we provide and decided to call us.

For our client, MBR drew documents and raised money for a $250,000 loan in three days. Structured as a first note, with 12% interest and 4 points, this loan enabled our client to act within the seller's rapid timeframe and negotiate the purchase price she wanted. She then refinanced at her own leisure

Speed, no money down, and cash at close
This client was a general contractor who owned a house with 50% equity. He had found a beautiful house on a large piece of property that he felt would be perfect as his primary home. The sellers, who were in the middle of a divorce, wanted a quick sale and were willing to sell at a discount.

The only problem was that the house was gutted and no bank would make a loan for this type of purchase. The client came to MBR for help.

MBR financed a $380,000 loan using the new house and the old house as collateral, closing in 21 days. The loan not only gave this contractor enough money to purchase the house, it gave him $30,000 to start the remodel. The client ultimately sold his original house and invested an additional $100,000 into the new house.

Our client recently completed the work on this dream house. The finished house has been appraised at $675,000, giving this client $225,000 in realized equity.

More than private lending... financial advice that made a difference
This client was a trustee in a family-owned rental condo that was held in an irrevocable trust. The family had found a single family residential property they wanted to purchase as an investment upgrade from their rental condo. The family went into contract to buy the house and put their condo on the market.

Needing the difference in funds between the selling price of the condo and the purchase price of the single family property, the family contacted a loan broker for $150,000. The trustee, who was a personal friend of an MBR employee, came to us to simply notarize the paperwork.
In looking at the paperwork, we noticed that a 1031 exchange had not been set up. A 1031 exchange is an arrangement in which one property is exchanged for a higher-priced property in order to defer capital gains taxes. Without it, this trustee would incur a $30,000 tax bill along with the sale of the condo!

To make things more complicated, the deal as it was structured took the house out of the trust and placed it solely in the name of one trustee, the mother, who was going though a divorce at the time. Under this arrangement, this valuable family asset would become community property to be divided in the divorce proceedings.

At MBR, we saw immediately that this arrangement was not in the best interest of the trust. We informed this client on the negative impact this contract would have on her financial well-being and advised on alternatives. Acting quickly, we canceled the loan, set up a 1031 exchange, and provided funding to the trust for the purchase of the property. The loan, processed in just four days, not only saved this client $30,000 in taxes, it kept the property in the original trust - protecting an asset she would have otherwise unwittingly forfeited.

Six months later, this family contacted MBR for a second loan so that they could build a guest unit for their property. MBR funded this loan and the family now earns an additional $1,200 per moth from the rental of this unit.

With our help, this client learned that she could now use the equity she has gained from the purchase of her home and turn it into income-earning investments. She is now a lender, providing funds for our borrowing clients.

"Within 48 hours, MBR changed my life. They alerted me to a problem and helped me fix it quickly. Now, they help make the financial options in front of me exciting instead of horrifying. I feel more positive about my financial future."