Equity Funding®

Facing a Trustee’s Sale? Don’t Lose Your Property! General American’s “Equity Funding®” Will Bring in Cash to Save Your Property

If you are behind in mortgage payments, in foreclosure and facing a pending trustee’s sale or even in bankruptcy, don’t give up, we can help.

We provide a service called Equity Funding®, which offers an alternative to commercial property owners who are experiencing serious financial difficulty and may even be on the verge of losing their property.

After providing us with preliminary information on your property, we will analyze and inspect your property. If it meets our requirements, we will prepare a conditional purchase agreement and complete our due diligence. If we decide to go ahead with the transaction, we will restructure the property financially, cure any delinquencies or, if applicable, bring the property out of foreclosure. In the case of bankruptcy, we would need bankruptcy court approval prior to our funding the transaction.

In exchange for our involvement we receive a majority interest in the property. The actual percentage of ownership is subject to our mutual agreement. In some situations our investment may also be secured by a note and deed of trust on the property.

By maintaining an ownership interest, whatever the percentage, you will be benefiting proportionately from any increase in the property’s value. This amount could be substantial and may even exceed the amount you might have realized by selling the property in a distress sale back when you first contacted us.

As part of our restructuring we may refinance the property and/or obtain short term financing through our parent company, affiliates or other lenders.

In most cases we utilize a single asset limited liability company or corporation to hold title to the property. This structure allows you to retain an ownership interest in the property. We would jointly decide who will manage and operate the property.

In our initial investigation we will have determined how much additional investment is needed to stabilize or restructure the property and this amount would have been provided for in our initial funding or through loans we will have arranged.

Once the property has been stabilized and after provision for operating expenses, management and debt service, we will share proportionately in the net cash flow. Our holding time is usually 3-5 years. The actual holding time will be negotiated at the time we enter into the transaction. At the agreed upon date we will sell the property or purchase your remaining interest based upon a mutually agreeable price or on an acceptable appraisal.

If you wish to submit a property, please fill out our submission form here. Or, you can download the form below and fax it to (775) 327-4600.