Our Success Story: 130 Coolwater Lane, Barstow, CA 92311

January 3rd, 2021

Universal Commercial Capital (UCC) focus is on finding the right financial solutions for customers that may experience issues with obtaining a business purpose loan from lending institutions as banks. Our team is dedicated on assisting each and every Borrower receives the needed business lending through a property secured loan. The credit score/history of the applicant, the lack of sufficient paperwork as tax returns, financial statements, etc. or the “not attractive” location of the property that serves as collateral of the borrowing can be some of the main reasons for a bank denial of the loan application.

Recently, the UCC processing team was privileged to assist a young businessman obtain a loan to rehab/transform a mixed use property built in 1989 located at 130 Coolwater Lane in Barstow, California. The purchase price of the building ($300,000) was paid cash and in full by the Borrower, however, $200,000 more was needed so the construction can be completed. The estimated After Repair Value (ARV) of the property was projected to be around $700,000, yet since Barstow is not considered an attractive location, the Borrower had troubles with receiving a loan approval from a bank.

Despite of the mixed- use type (light industrial) and the challenging location of the property, Universal Commercial Capital has managed to arrange private funding for the Borrower and the application was quickly approved with a term of the loan being 180 months (15 years), fully amortized; interest rate of 10% fixed rate and no prepayment penalty applicable. As an exit strategy the Borrower specified he plans to hold the building and pay off the loan by using the rent payments to be received.

Additionally, since many improvements of the interior were in progress (adding windows, reconstruction of indoor walls; remodeling bathrooms) when the loan was approved, the private investor had to accept a mechanic exception on Title, because of the work performed on the property and no fund control. The UCC processing team worked closely with Title/Escrow officers to assure smooth closing of the deal was achieved.

Universal Commercial Capital picks up where the banks left off and through the last 10 years the company has provided private lending to multiple entrepreneurs. Please contact us for a free loan consultation / estimate.