Distressed Lending Program (DLP) - Overview

Bolour Associates’ Distressed Lending Program provides short-term bridge loans in California, Arizona, Nevada, and Texas. The firm finances value-add property acquisitions, note acquisitions, and discounted pay-offs on a variety of property types, including retail, office, multifamily, flex and bulk industrial, bulk and fractured condos, finished lots, multifamily land, in-fill commercial land, and small balance commercial mortgage portfolios. The firm also finances mid-construction development and rehabilitation projects.

Bringing over 30 years of operating experience in real estate to each transaction, the firm has an established track record of closing quickly with its own capital, designing creative loan structures to meet complex borrower and property requirements, and maximizing leverage levels. In designing creative loan structures, the firm addresses a wide range of complex borrower and property requirements, including zero/negative cash flow, earn-out provisions for “good news,” and sponsor credit issues.

Bolour Associates offers borrowers a reliable source of bridge financing with a variety of creative solutions, such as:

1. Property Acquisition Financing for Quick Closings

Bolour Associates will provide financing for buyers requiring a closing in less than 10 days. This financing bridges the time required to complete a conventional loan closing when buyers are unable to obtain an extension of a due diligence period. For example, Bolour Associates provides acquisition financing for owner-users seeking to bridge the time period required to close an Small Business Administration loan.
 

2. Loans on Distressed Property Purchases

Bolour Associates will provide financing for buyers to acquire distressed assets and provide additional funding to renovate/complete construction and build out tenant improvements to stabilize occupancies and property operations.
 

3. Loans on Performing and Non-Performing Note Purchases with a New Buyer and Original Borrower

Bolour Associates will provide financing for a buyer’s acquisition of notes secured by real estate. The collateral is the note itself, not the underlying asset, and the security is an assignment of the deed of trust and the personal guarantees of the buyer’s and/or borrower’s principals.
 

4. Purchase of Performing and Non-Performing Notes with Cooperation of Original Borrower

Borrowers typically do not have the funds necessary to complete discounted pay-offs negotiated with their banks. Bolour Associates can purchase the note using its own funds and enter into a forbearance agreement simultaneous to closing. This arrangement resets the maturity date and gives the borrower the right to pay off the note for a pre-negotiated price.
 

5. Acquisition Financing for Multifamily-Zoned and Urban In-Fill Land

Bolour Associates will provide financing for borrowers acquiring multifamily zoned or urban in-fill land to bridge the time required to complete development preparations and secure a construction loan take out.

For more information about the DLP, please contact Elliot Shirwo at (323) 677-0550 extension 102, or elliot@bolourassociates.com.