LBC Capital Income Fund, LLC has introduced a streamlined review process for qualified mortgage brokers and real estate investors seeking hard money financing for time-sensitive, business-purpose real estate transactions.
For certain eligible deals, the company may be able to fund in as little as three days. The process is designed for transactions where timing is a material part of the deal, including competitive acquisitions, short escrow periods, distressed properties, bridge financing, fix-and-flip projects, value-add opportunities, multifamily investments and construction-related transactions.
The company said the updated process is intended to reduce avoidable delays at the beginning of a loan review. LBC Capital focuses first on the information most likely to determine whether the transaction can move forward: the property, the borrower’s business plan and relevant experience, the proposed exit strategy, the requested structure and the principal risks.
“Most delays do not begin at closing. They begin when nobody identifies the real issue early enough,” said Boris Dorfman, founder and fund manager of LBC Capital Income Fund, LLC. “A broker should know what the lender needs, what could prevent the loan from closing and whether the proposed structure is realistic. When the file is complete and the transaction makes sense, we can move quickly without lowering the standard of review.”
LBC Capital reviews each transaction individually. Depending on the complexity of the deal, the company may move from a complete submission to funding within approximately three to seven days.
The shortest timelines generally require a complete and organized file, responsive transaction parties and no unresolved issues involving title, insurance, property condition, valuation, legal documentation or the proposed exit strategy. Funding in as little as three days is limited to certain eligible transactions and is not guaranteed.
“A fast closing is not the same as rushed underwriting,” Dorfman said. “The purpose of the process is to ask the difficult questions sooner. That gives the broker a clearer answer and gives everyone more time to solve issues before they become closing problems.”
The updated process may be particularly relevant to borrowers competing with cash buyers, acquiring properties through short escrows or purchasing assets that do not fit conventional lending requirements. It may also help brokers determine earlier whether private real estate financing is appropriate for the proposed transaction.
LBC Capital provides business-purpose financing secured by real estate. Eligible loan types may include bridge financing, fix-and-flip loans, value-add financing, multifamily loans, construction-related financing and other customized structures.
