FIX AND FLIP LOANS:  Over the past ten years or so this has been by far our most common loan.  We generally write this for seven (7) years direct reduction with no penalty for prepayment after the first six months or first year.

“MOM AND POP” loans: Small businesses in need of cash to pay emergency bills or to get started in business are frequent borrowers.

FRANCHISEE LOANS: We regularly search the business franchise market for franchisees needing financial help to purchase or start up a franchise.  This is a relatively new area of business for us but looks promising.  We may from time to time act as an equity participant with some franchisees.

TRIPLE NET REAL ESTATE INVESTMENTS. Historically this was an area of concentration for us, but we have moved away from retail stores, particularly single purpose drug stores, because of the huge disruption of the retailing industry.  That said a NNN property where the tenant pays all the costs of ownership is frequently desirable for 1031 exchange purposes to avoid immediate payment of capital gains taxes.

RAW LAND AND AGRICULTURAL LOANS:  We are very interested in natural resource development, especially timber and stone in western Massachusetts.

LEASEHOLD LOANS. One thing we do that very few other lenders do is to give loans to businesses secured only by their business property lease.

SALE LEASEBACKS. An owner of real estate who is no longer able to manage the real estate or pay the high carrying costs might consider selling all or a portion of the real estate to an investor either for a fixed sum paid immediately or a sum of money secured by mortgage paid over a period of time with interest.  The owner might retain possession of all or a portion of the premises upon payment of a rental charge.  This strategy is extremely useful for reinstating first mortgages which are in default.

RATES AND TERMS:  Rates are entirely dependent upon the probable ability to repay. Extremely established business plans with plenty of debt coverage might get an 8% and 2 point loan. More risky business plans might be looking at as high as 16% and 4 points.

While we tend to write a 7 year direct reduction loan closed to prepayment in the first 6 months or year, we will generally agree to interest only loans for whatever term, up to 30 year direct reduction loans, or loans with no payments of either or both interest or principal for the first six month or year.