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Houston’s Bridge Group Helps ‘Seal the Deal’ on Home Buying
(HOUSTON, TX) -- The average real estate investor would probably cringe at the homes Mr. Brooke Thompson finances. Consider one of his clients’ recent acquisitions on Louisiana Street in Midtown: stained carpet, collapsing walls, and the lingering stench of a home has been vacant for five years. But where some see trash, Thompson sees treasure. “There’s no question that some of the properties we finance are close to being ‘tear-downs,’” Thompson says. “But we’ve gotten pretty good at determining which ones have life – and potential profit in them.” Such properties usually require thousands of dollars in repairs before becoming marketable, which is where Thompson comes in. His business, The Bridge Group, specializes in providing financing to the professional real estate investor in the acquisition and rehabilitation of residential properties – typically when traditional funding strategies are unavailable or unaffordable. For many would-be investors, The Bridge Group makes the difference between being able to get the house or walking away from it or, as Thompson puts it, “we help seal the deal.” As word has spread about Thompson’s willingness to fund qualified “mom and pop rehabbers” and “weekend warriors,” The Bridge Group has expanded rapidly. “The popularity of ‘Home and Garden Television’ and shows such as ‘Trading Spaces,’ ‘Curb Appeal,’ and the like have created many new opportunities for us,” Thompson explains. “People can see first-hand how their hard work – sweat equity, as we call it – can transform a hovel into a castle.” And, presumably, a nominal investment into a profitable one. Thompson created The Bridge Group, in part, over 5 years ago to act as a secured creditor for Dallas-based HomeVestors of America Inc., a national real estate company with more than 200 franchises in 20 states. The company is most known for its blitz of billboard ads, all boasting, "We Buy Ugly Houses." "There are people out there who have unfortunately neglected their property and who need, for whatever reasons, a quick way to sell it," Thompson says. "They are looking for someone to come in and pay cash for the property to get them out of a bind or take the property off their hands." Sell it now, as is But many people have neither the time nor inclination to do the work themselves, and Thompson sees this as an important feature of his business. “We allow a homeowner to get rid of
-2their home without making any repairs to the home and without paying any real estate commissions, Thompson says. "They can sell it as is." Nationwide, HomeVestors of America, Inc. bought 3,425 homes in 2003 and had annual revenue of more than $19.6 million. Created in 1989, the Dallas-based company has enjoyed an annual growth rate exceeding 100 percent since 2001. Although he declines to cite specific numbers, Thompson says his local results mirror the growth percentages that HomeVestors enjoys. According to the McAlister Report, Houston has the lowest housing prices among the top 27 large metropolitan areas in the United States. Houston’s housing prices are only a fraction of those in many other major cities, yet the average income is comparable. How they do it Thompson will never loan more than 70% of the current appraised value. “We are asset based lenders who are creative in assisting buyers acquire multiple properties and opportunities throughout the country,” he says. “Because we can often fund 100% of the borrower's acquisition cost, it is less expensive for him or her to pay the higher rates and our origination fee than to take on a partner and give up 50% of the profits.” There is significant demand for the products whether it is through a Homevestors franchisee or a qualified non-franchisee “rehabber”. This is in part due to the strong demographic growth of the end user population in Texas over the past few years. All economic and statistical studies indicate this growth will only increase exponentially in the years and decades ahead. Moreover, due to the Texas economic downturn in the 1980’s, the state’s real estate prices still lag far behind national averages. Accordingly, there is very little downside risk and significant opportunities to make 12 month loans against properties with no more than 70% LTV (loan to value). Qualified rehabbers seek out this type of financing because The Bridge Group does not burden the borrowers with unreasonable requests prior to securing the loan. Bridge simply obtains a Promissory Note and Deed of Trust secured by a first lien after very simple credit checks, surveys, appraisals, title insurance policies and inspections are completed. Its team of service providers can easily complete all of these tasks in less than a week providing The Bridge Group clients a very timely loan. Other lenders or partners for potential borrowers are never consistently able to deliver the monies in a timely manner as they traditionally require lengthy, cumbersome paperwork and invariable delays. Indeed, The Bridge Group is able to “seal the deal” by putting both time and money on the side of its borrowers. For more information, contact Brooke Thompson at The Bridge Group, 713664-6004;713-301-2664 or email him at info@4-Bridge.com.
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