03 Oct 1031 EXCHANGE BRIDGE FINANCING PRODUCT
In the last two plus years, Florida real estate prices have increased exponentially as a result of a mass migration of both US citizens and foreign nationals to the Sunshine State. Real estate investors in Florida have taken advantage of this growth by investing in “fix and flip” properties to achieve both price appreciation and depreciation tax benefits with each transaction.
In order to avoid paying short term capital gains tax, many real estate investors in Florida are utilizing the 1031 Exchange product so that they can defer taxable events from the sale of real estate assets to some date in the future. In some cases, real estate investors are using their own cash to both purchase and renovate these properties. Certainly, using your own cash for this purpose is not the most ideal scenario for any real estate investor.
The main reason that some investors are choosing to use their own cash to make fix and flip investments is due to the onerous process of dealing with banks for their financing needs. In order to become a successful fix and flip investor, one must be able to move quickly to purchase a real estate asset in a very competitive environment in which there could be multiple bidders for a specific asset. “All cash” offers have become the norm in Florida in most transactions so investors do not have time to waste by attempting to navigate the bureaucratic loan underwriting process of the banks. The normal loan approval process for any bank can take up to four to six weeks. As such, it makes no sense for any fix and flip investor to seek bank financing for a real estate transaction that may require that the buyer close on the purchase of the property within a matter of days.
Worth Avenue Capital is launching a short term bridge financing product that is tailored specifically to the needs of all fix and flip financiers in Florida. WAC can fund a loan request for an investor within one week or less thus enabling the investor to move quickly to purchase a real estate asset without having to use their own cash to close on the purchase.
Worth Avenue Capital specializes in arranging debt financing for both small businesses and real estate developers/investors and also handles bank workouts for those same clients. You can learn more about WAC by taking a look at the website and Youtube videos or by contacting WAC’s principal, Michael M. Ciaburri at worthavenuecapital@gmail.com or (203) 605-4082. WAC maintains offices in both Guilford and Greenwich, Connecticut as well as Palm Beach, Florida. Be sure to follow @worthavecapital on Twitter for the latest lending news.