Creative Bridge Financing for New Orleans Warehouse: Overcoming Valuation, Borrower and Tax Challenges
Asset: Warehouse, 3865 Industrial Parkway, New Orleans, LA 70129
Amount: $375,000
Term: 18‑month, interest‑only
Status: Funded July 30, 2025
Loan Challenge
Compressed timeline with borrower/occupancy ambiguity. The deal came in with a requested one‑week close, creating urgency and pressure on due diligence. The initial due diligence showed the borrower had a business registered at the subject address, creating confusion around investment vs. owner‑occupied treatment until the rent roll confirmed a third‑party tenant (later verified via lease agreement).
Foreign National Borrower. The borrower’s non‑U.S. status triggered additional visa documentation requirements.
Tax delinquencies that had to be resolved at/before close. City records showed 2024 and 2025 property taxes delinquent.
Divergent valuation indications. A prior appraisal valued the property at only $625K, which conflicted with our own internal and external valuations.
Solution
Managed urgency by streamlining underwriting. While a one‑week close wasn’t realistic given the complexity, we prioritized critical path items and ran valuation, title, and documentation steps in parallel to keep the deal moving and deliver a clean approval as fast as possible.
Underwrote to today’s value, not yesterday’s appraisal. Sized the loan to an updated as‑is value of $700K, backed up by a new external valuation, unlocking more proceeds.
Structured for flexibility and execution certainty. Closed at 13.95% interest, 18‑month interest-only term, with two 6‑month extensions for exit options.
Cleared tax hurdles without killing the deal. Allowed delinquent taxes to be paid from loan proceeds—and we can do the same for federal taxes when needed.
Outcome
Funded July 30, 2025: $375,000 at 53.57% LTV, based on updated valuation.
Broker win: Edward Kim (Precision Lending Group) delivered for his client while we handled the complexity behind the scenes.
