How Mortgage Brokers Are Helping Small Business Owners Keep Their Doors Open

Stringent mandates imposed by the State of California has left many small business owners with limited options, diminishing liquidity, and even bankruptcy. These circumstances have provided Mortgage Brokers with a unique opportunity to assist their struggling clients and solidify a lifetime business relationship.

Top mortgage originators act as a “personal real estate banker” to their clients. They wield the power to offer liquidity by using the available equity in their borrowers’ real estate portfolio.

In an ideal scenario, mortgage brokers would place their borrower in a new conventional 1st TD or even a HELOC 2nd to give these business owners their cash lifeline. However, these shutdowns and forbearance options have placed a large number of their borrowers outside of the conventional/bank guidelines, leaving mortgage brokers with clients who have significant equity, but no way to access it.

In an effort to aid our mortgage broker clients in their dilemma, JCAP Private Lending has set aside a larger share of its portfolio to provide short-term cash out loans to the self-employed by collateralizing real estate.

Although hard money is generally lent against Non-Owner Occupied properties, JCAP is actively funding emergency cash out loans (usually in 2nd Trust Deed) directly to a borrower’s business account by collateralizing their primary residence. Equity is the driving factor in JCAP’s underwriting process to ensure that challenged credit is not a barrier in providing capital to California’s Small Business Owners.

Case Study:

Newport Beach, CA

Jcap recently had a Broker send us a scenario in which the borrower was looking to pull equity from his home. His business was feeling the effects of COVID and needed a cash infusion. Jcap was able to provide him with a 2nd Trust Deed that provided him the capital needed to make it through the next 12 months. We were able to close the loan within 3 days with in-house valuation.

If you have a scenario that fits this description, please reach out directly to Paul Wirth, Vice President at Jcap Private Lending.

Paul With, Vice President Lending

Jcap Private Lending

(714) 943-7886

Paul@jcap.net