Why Bridge Loans?

The three major reasons why your client may need a bridge loan include:

1. They have terrible credit, tax returns or income
2. Highly specialized or messy collateral used
3. They need the money as soon as possible

We hear stories like this every day Gravity Capital. An entrepreneur sees a great deal. The prospective borrower sports a poor credit score and needs a lot of funds. The collateral involved can serve, many diversified purposes and can include loads of nontraditional and unrelated parts. Such collateral can include specialized business ventures industry-specific real estate and so forth.  Banks or other traditional lending institutions struggle to wrap their head around such complicated deals. Sometimes it gets even worse… they need the money within ten days. If you have connections with realtors, real estate investors or others you can become the first call and potentially earn an incredible payday.

Storytime with Dave

Dave related a story in his no-cost e-book The Art of the Loan that relates such a deal. Dave wrote:

“I have been involved with oil and gas for 10 years, mostly working as a landsman. The average landsman encounters many diversified opportunities. This was one of the more memorable ones. Oil and gas wells have a bi-product – you might be familiar with it – it’s called water, and it needs to be disposed of.

Removing water is a pain, not to mention very expensive. The water must go somewhere  Often times you dispose of this water down an old oil well that doesn’t produce oil any longer. They’re notoriously hard to get permitted and tested to make sure that the well will be able to take the water.

In the Uintah basin, I found an old disposal well able and certified to take oil disposal water; it just needed an integrity test to see if it would take water. I made an offer to the company that had it. I offered them $200,000.00 and they accepted it. They were an old oil company that had gone broke and just wanted to get rid of it. I made the offer subject to getting the permit. Subsequently, I received approved, we closed and bought the well along with 5 acres.

George was a water disposal expert that I knew. I told him about the well and he wanted it. He paid $500,000.00 and agreed to give us a 10-cent per barrel royalty for every barrel of water we put down the well. Guess what? In the next two years, we received $475,000.00 for that royalty and then we sold it for $650,000.00. On that $200,000.00 investment we made a Total profit $1,390,000.00 ”

Conclusion

Gravity Capital believes in people and dreams. This belief combined with corroboration can provide opportunities for you and your clients, we can deliver funding quickly.  Although these deals are not the norm, they exist. We know it takes passionate knowledgeable people to pull such deals off and we want to support them.

Whether you aspire to become a  loan broker, work as a grizzled veteran or working the job as a side hustle. Connections with these types of people can change your life. Help us fund your dreams and your client’s dreams. A few days of hard work with the right connections could be the difference in your next big payday. Talk to Dave to get some tips on how to build these connections.