Google Answers Logo
View Question
Q: Secures and or unsecured loans ( Answered 3 out of 5 stars,   3 Comments )
Subject: Secures and or unsecured loans
Category: Business and Money
Asked by: davsay62-ga
List Price: $200.00
Posted: 30 Nov 2005 10:33 PST
Expires: 30 Dec 2005 10:33 PST
Question ID: 599560
How can I get a $400,000 loan?  I have purchased 104 unit apartment
complex and need to repay some loans.

Request for Question Clarification by nancylynn-ga on 30 Nov 2005 11:37 PST
Hello davsay62-ga:

Could you please address these questions:

Can you please tell me in which city, or which region of the U.S., you
reside and/or do business?

Do you belong to a labor union or business association?

What kind of debt are you attempting to pay off -- e.g., credit card debt?

Are you the sole owner of the apartment complex? Besides the apartment
complex, do you have any other collateral?

Best regards,
Google Answers Researcher

Request for Question Clarification by nancylynn-ga on 30 Nov 2005 11:56 PST
Sorry for another clarification request, but are you trying to pay off
the loans you used to purchase the apartment complex?

If so, would you be open to the option of refinancing those loans at a
lower interest rate, or going with lower monthly repayments over a
longer period of time?

Clarification of Question by davsay62-ga on 30 Nov 2005 12:59 PST
I reside in Wappingers Fasll, NY.

I do business in Waterbury, CT.

I do not belong to any labor union or business association.

I borrowed money from friends and relatives in order to match the same
amount put into the project by my partner.  Total Deposits eqaul
$1.5MM.  Total purchase price equal to $6.5MM.  We have a first
mortgage of $5.2MM.

"refinancing those loans at a lower interest rate, or going with lower
monthly repayments over a longer period of time?" is not an option. 
And obtaining a second is not since there is a no subordination

I was hoping to find private money (points and interest rate not an
issue) and perhaps with a co-signer.

I own my Own house and is nearly maxed ($390K existing loan with $450k value).
Subject: Re: Secures and or unsecured loans
Answered By: nancylynn-ga on 30 Nov 2005 20:22 PST
Rated:3 out of 5 stars
Searching with terms such as "loan + private money + co-signer" and
"private loans" brought up only student loans and the Mafia. (OK, I'm
kidding about the latter.)

Basically, you already owe $400,000 in private loans. Since you need
such a large amount of money, I don't know how viable an option
unsecured loans really are for you. Your only real options would be
credit card cash advances (meaning insane interest rates), and
unsecured personal loans, but the average ceiling I found for those --
when it was specified -- was about $25,000 - $35,000 per loan.
You are likely going to have to go with a secured loan using the
apartment complex as collateral, or cash flow from the complex as
collateral for a line of credit. One possibility: go with a bank that
will administer a low-rate SBA loan for new businesses, but that means
your partner would have to co-sign.

The single best vehicle for you may be a revolving line of commercial
or business credit, but again, your partner would have to be agreeable
and willing to co-sign.

Otherwise, you're looking at trying to assemble $400,000 from an array
of personal unsecured and secured loans, and cash advances, meaning
lots of payments to make each month and very high interest rates.

That will also be problematic, as any institution you approach for
such a vehicle will run a personal credit check on you. Even if your
credit rating is good now, your deteriorating cap to debt ratio -- the
inevitable result of opening more and more accounts to borrow more and
more money -- may make you ineligible for consideration. It's going to
hurt your credit rating, too.

My first, and strongest, recommendation is that you ask around, in
both the Hudson Valley and Waterbury areas, about reputable fee-based
financial planners or business consultants. Such an expert can put you
on a path to the lowest-cost, most secure loan arrangement.

Meanwhile, here are some suggestions:


Here are two options you may want to mull; both involve using personal
assets as collateral.

Stock-Backed Loans OR Borrowing Against your 401K 

If you have a 401K through your job, you can borrow from it, but you
should heed the potential pitfalls.

See "Warning: 401(k) loans are hazardous to your wealth. Borrowing
from your 401(k) plan should be your last solution, not your first,
when you need a loan fast. Here's a look at the pros and cons," by
Ginger Applegarth, MSN Money, un-dated: 

". . . you can borrow up to 50% of your vested account balance or
$50,000, whichever is less. You usually have a maximum of five years
to repay the loan . . . ."

If you've been investing on your own, not via an employer, you can
still get a loan using your portfolio as collateral, and you can get
more than $50,000.

At HedgeLender:
They'll loan you up to 90% of your portfolio's value.   

Merrill Lynch offers the Loan Management Account, in which you use
your stocks as collateral:,,23356,00.pdf#search='stock%20based%20loan'

"WHAT IS THE LOAN MANAGEMENT ACCOUNT? The Loan Management Account is a
single account for managing multiple loans, which gives you the
borrowing power you need for personal and business financing. With
LMA, you can pledge a broad range of eligible assets as collateral,
leveraging their combined value while keeping your investment strategy
on track. Plus you can keep your loan, investment and cash management
accounts separate and still have the convenience of managing all your
finances under one roof.

"When you open an LMA account, we establish your total available
credit based on the combined value of all your eligible assets in the
accounts you have pledged. You can access your available credit
through a  revolving line of credit and/or one or more term
loans without having to reapply for a new loan."

1- 800-637-7455

Also check out the Triangle Equities Group:
FAQ & Contact Info:

Revolving Line of Credit 

Basically borrowing against a percentage of the appraised value of the
property; in this case, the apartment complex. Going through a bank
that administers SBA loans is especially secure, and your business
partner may be amenable to such a loan, especially if he has debts to
pay off, too. So, a revolving line of credit may be the ticket for

A line of revolving line of credit is repaid from your cash flow, but
you can also still borrow against it.

Thomaston Bank (they have a branch in Waterbury, too), administers SBA
loans, with an option for a revolving line of credit:

Wells Fargo Commercial Loans:
Their SBA loans:
Wells Fargo's Business Asset-Based Loans:

You can contact Wells Fargo via any of the above URLs, or via their
real estate division:
Contact: Steve St. Thomas, East Coast representative: (617) 574-6339

SBA loans:


Click on "Find a Relationship Manager" or "Email Us." Or call 1-800-368-7808.

People's Bank - CT:,,13546,00.html


Action Funding will help you refinance your loan on the apartment complex:
"Action Funding provides loans and creative financing for virtually
any commercial or business need ? many of which are not usually
handled by banks or other lending institutions."

Action Funding, Inc. 
Torrington, CT 06790

Hudson Valley Federal Credit Union

You can get a personal loan there, but only for up to $25,000 (which
is a typical ceiling for a personal loan):

You can also apply for a stock-secured loan there:
"Loans and credit lines available from $500 up to 85%* of the previous
day's closing value of your stock .Your money keeps working because
you keep any dividends earned on the secured stock."

You'll have three options for repaying: line of credit, interest only,
or balance and interest.

Wappinger Falls location:


Personal Loan

If you have a good to excellent credit rating, you may be able to get
an unsecured personal loan from one of your credit card companies;
however, they will run a credit check and if your debt to cap is
fairly high, they may not approve the loan.

Here are some companies that provide unsecured consumer or personal
loans, but I'm not sure of their ceilings:

American General Financial Services:

American Unsecured:

Signature Loans (Secured and unsecured) from American Personal Loans:

Offers unsecured loans of up to $150,000.

Search Strings:
secured loan + bank OR credit union +Hudson Valley 
Wappinger Falls, NY +lenders
Waterbury CT +loan
secured OR unsecured loan +$400,000
unsecured loan +$400,000 +NY OR Connecticut
secured OR unsecured loan + pay off real estate loan
unsecured personal loans
paying off loans from family and friends for business investment
revolving line of credit +business +Connecticut

I hope my research is of help to you. If you have any trouble
navigating any of the above links, or if you need me to clarify
anything, please post a "Request For Clarification," and I will assist

Best regards,
Google Answers Researcher

Request for Answer Clarification by davsay62-ga on 01 Dec 2005 11:59 PST

Thank you for the quick response, But I have tried those venues.  I
was hoping to find leads or sources for hard money lending.  I try and
often get deadbeat or fradulent sites.  I need your help in
determining some legit sources.  As you can see, we have a high net
worth but are stretched on liquid capital.

Clarification of Answer by nancylynn-ga on 01 Dec 2005 17:28 PST
I wish you had detailed which avenues you'd already pursued, and ruled
out, when you posted your question. It's impossible for researchers to
assume what a client, like yourself, has already done.

Since you haven't had any luck with banks and credit unions, can't get
a stock-secured loan, or get the SBA or Action Funding, etc. to loan
you money, I suggest you try calling these leads I provided:

American General Financial Services:
(They are part of AIG, American International Group, Inc., an enormous
and reputable company.)

American Unsecured:

Signature Loans (Secured and unsecured) from American Personal Loans:

Offers unsecured consumer loans of up to $150,000; business loans up to $250,000.

Both AmericaOne and AmericaUnsecured are part of America One Funding
and are registered with the BBB. That doesn't guarantee there won't be
a problem, but it certainly provides credibility.

You can check out this page:

Or, you can always visit the Better Business Bureau's or call a local
bureau to check out a lender.

For instance, America One's headquarters are:
America One Funding Group, Inc.
5555 Angler's Avenue #15
Fort Lauderdale, FL 33312

Go to the BBB's site:

From there, I was able to bring up the Fort Lauderdale BBB:
There, I posted in the first part of America One's URL and that
brought up this report:
There have been four complaints lodged against the America One over
the past 36 months. All four matters were resolved.

The BBB's report on America One is very favorable:

"Based on BBB files, this company has a satisfactory record with the
Bureau. The company has been responsive to any matters brought to its
attention by the Bureau.
"To have a Satisfactory Record with the Bureau, a company must be in
business for at least 12 months, properly and promptly address matters
referred to it by the Bureau, and be free from an unusual volume or
pattern of complaints and law enforcement action involving its
marketplace conduct. In addition, the Bureau must have a clear
understanding of the company's business and no concerns about its

AIG and America One seem to have the broadest lending criteria of all
the suggestions I gave you -- certainly they seem more apt to take on
risk than banks, I would think -- and they seem to be legitimate,
respectable companies.

So, I would suggest you try them. If they deem you a poor risk, I
think you're going to have to consider selling off assets, rather than
taking on more debt.

Perhaps your best bet would be to sell a percentage of your ownership
in the apartment complex to another real estate investor in a
cash-only sale to pay off your startup loans.

Google Answers Researcher
davsay62-ga rated this answer:3 out of 5 stars

Subject: Re: Secures and or unsecured loans
From: g_dana-ga on 14 Dec 2005 14:25 PST
I was really surprised at part of the response by the expert - they
look like somebody who does a lot of research, but has no practical
experience. How could you suggest a secured loan on the existing
apartment complex when it is already at 80% LTV, which is about as
high as you can go for a commercial property.

I would suggest either a high interest loan secured by the project
and/or other collateral, or to bring in another partner to share the
risk.  I would be interest in either of these scenarios. Is there more
information available on the project?
Subject: Re: Secures and or unsecured loans
From: nancylynn-ga on 15 Dec 2005 05:38 PST
I did suggest bringing in a partner, or using the apartment complex as collateral.

davsay62-ga, if you'd like to pursue hard money lenders, check out
Wikipedia's article:

Be sure to scroll down to:

"External links

Directory of Hard Money Lenders 

Large list of lenders, organized alphabetically 

DMOZ Commercial Lenders - Directory of hard money lenders 


WeirdLoans Guide to Non-Conforming Loan Types 

How to Guide on Hard Money 

Articles on Hard Money Practices and Loan Terms"
Subject: Re: Secures and or unsecured loans
From: davsay62-ga on 19 Dec 2005 17:09 PST
I am searching for exactly what g_dana-ga was suggesting.  There is a
myriad of possibilities on the internet and was hoping that this new
service from google would help.

Waht I need is what you said:  

"I would suggest either a high interest loan secured by the project
and/or other collateral, or to bring in another partner to share the
risk...."  and make a nice interest in return.

Important Disclaimer: Answers and comments provided on Google Answers are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Google does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. Please read carefully the Google Answers Terms of Service.

If you feel that you have found inappropriate content, please let us know by emailing us at with the question ID listed above. Thank you.
Search Google Answers for
Google Answers  

Google Home - Answers FAQ - Terms of Service - Privacy Policy