How Hard Money Helps

Private Mortgage Financing Partners, a “Hard Money” lender differs from traditional financial institutions. PMF Partners is asset-based, so first, we analyze a borrower’s real estate collateral and treat cash flow as a secondary concern.  If you have a clear exit strategy, we don’t even require historical cash flow.

Restaurant owners in Dallas with a track record of success ran into hard times due to unforeseen circumstances and poor management.  They could no longer make their note payment and the bank was going to foreclose.  Because of negative cash flow, they were unable to refinance the debt.

Here is how PMF Partners worked with the owners: Only $1.4 MM was owed on the restaurant real estate that was worth $2.5 MM. PMF purchased the loan from the bank at a discount and did NOT require the client to provide payment for a year, recommending that the borrower sell the building because he would not be able to make the payments after the 12-month grace period expired.  The borrower was able to sell the property for $2.5 million within 11 months. With the sale, the owners were able to pay off PMF Partners as well as back taxes and penalties. Their goal was to have $300,000 remaining to open their restaurant in a new location. Unfortunately, because of fees and penalties from unpaid taxes, they were going to be $30,000 short.

This is how we helped: Because they were a good client and PMF was making a very good return due to the discounts we negotiated when we purchased the original debt, we reduced our payoff by $30,000 so he could have what he needed.

When someone stops making payments and providing financial statements or communicating with financial lenders and tax entities, a multitude of consequences are sure to occur. Just a few may be late fees, default interest, forbearance fees, collection fees, taxes, and more.  If you want financial success, you have to responsibly manage your debt now. If you don’t understand the company “numbers” then you need to find a trusted source to help with your company financials.

PMF Partners can help you with the numbers and if needed, refinance your low loan to value commercial real estate and give you cash out to pay off or pay down other debt. We often leverage American Finasco, to help restructure debt. Both options will help decrease your debt-to-income ratio.