How a Golf Course Owner Pulled $1.05M Cash-Out at 34% LTV After Banks Refused the Asset
Sources: Small-Balance Commercial Refinance — PeerSense, Asset-Based Lending Hub
How did PeerSense solve this scenario?
34% LTV cash-out, banks declined asset class, capex funded. A second-generation owner-operator of an 18-hole, par-72 golf course with a clubhouse, restaurant, and pro shop on 159 acres in a tertiary Southeast market. PeerSense placed the deal into specialty property bridge with conservative leverage, asset-based underwriting, and fast execution. Composite case study based on the deals we close every month.
— PeerSense Composite Case Study · 2026-05-01
At a glance
| Loan size | $1.05M cash-out refinance |
| Property type | 18-hole golf course + clubhouse, 159 acres |
| LTV | 34% — very conservative |
| Term | 24-month bridge |
| Use of proceeds | Course improvements, equipment, debt payoff |
| Borrower | Long-time golf course operator |
| Market | Tertiary Southeast |
The borrower
A second-generation owner-operator of an 18-hole, par-72 golf course with a clubhouse, restaurant, and pro shop on 159 acres in a tertiary Southeast market. The course had been in his family for 20+ years. It had a loyal local member base, was profitable in its operating segments, and had real recreational and ecological value to the community. What it didn't have was bank-friendly financials.
He needed capital. The course's irrigation system was at end of life, several greens needed major reconstruction, and his fleet of golf carts was aged out. He also had a small existing note he wanted to retire and roll into a single, simpler loan. Total need: about $1M.
Why traditional financing said no
Banks treat golf courses as a refused asset class. It's not a credit issue, a cash-flow issue, or even a borrower-quality issue. Most commercial banks have explicit policy exclusions for golf courses, country clubs, and similar specialty recreational properties because:
- The asset is illiquid in resale (very narrow buyer pool)
- Operating performance is weather-dependent and seasonal
- Most banks have no underwriting framework for the asset class
- Insurance and reserve requirements complicate the structure
He'd called five regional banks, two SBA lenders, and one specialty agriculture lender. Same answer from all of them: not eligible.
How PeerSense solved it
We placed the deal into a specialty asset-based bridge program in our network that explicitly underwrites recreational and specialty commercial properties — including golf courses, RV parks, marinas, and similar assets that banks decline.
The structure made the deal work:
- $1.05M cash-out at 34% LTV of appraised value
- The very conservative LTV is what makes this deal possible — at 34%, the lender's risk is so contained that the unconventional asset class becomes acceptable
- 24-month interest-only term with extension options
- Use of proceeds:
- - ~$420K — irrigation system replacement and green reconstruction
- - ~$210K — golf cart fleet replacement (with separate equipment finance for ~$180K balance)
- - ~$240K — existing note payoff
- - ~$180K — operating reserve and seasonal working capital
Underwriting was driven by: - The appraised value of the real estate (159 acres + improvements) - The borrower's 20+ year operating history - A reasonable exit strategy (SBA 7(a) refinance once improvements stabilize NOI)
The outcome
- Course improvements completed within 14 months
- Round counts increased ~18% post-improvements
- NOI improved enough to qualify for SBA 7(a) refinance
- Existing high-cost note retired, replaced with single bridge structure
- Exit plan: SBA 7(a) refinance at month 24 — improvements have stabilized cash flow enough to qualify
Frequently asked questions
Can I get a loan against my golf course?+
Yes — but rarely from a conventional bank. Specialty asset-based bridge lenders that explicitly accept recreational properties (golf courses, RV parks, marinas, country clubs) will lend at conservative LTVs (typically 30-50%) where banks decline.
Why won't banks lend on golf courses?+
Most banks have explicit policy exclusions for golf courses because the asset class has narrow resale liquidity, seasonal performance, and limited underwriting precedent. It's a category exclusion, not a credit decision.
What LTV can I expect on a golf course loan?+
Typically 30-50% LTV. The conservative leverage is what makes the unconventional asset class acceptable to private capital lenders.
Can I use the proceeds for course improvements?+
Yes. Course improvements, equipment purchases, debt payoff, and working capital are all common use cases. Some lenders will hold improvement funds in escrow with disbursement against completed work.
What's the typical term?+
12-24 months interest-only is standard, with extension options. Terms are sized to give you time to complete improvements, stabilize NOI, and qualify for permanent SBA or bank financing.
Can I refinance into an SBA 7(a) loan after the bridge?+
Yes — this is a common exit path. SBA 7(a) and 504 loans accept golf courses and many other specialty properties when the operating financials support the loan, which often takes a stabilization period after improvements.
What other recreational properties qualify for these programs?+
RV parks, marinas, glamping resorts, hunting clubs, country clubs, equestrian facilities, ski resorts, and similar specialty recreational assets. Each has its own underwriting nuances but the common thread is: banks won't, specialty lenders will. ---
Have a similar scenario?
Composite case studies based on the deals we close every month. PeerSense routes to the right program + lender.
Composite case study. Names, locations, identifying details, and dollar amounts modified to protect borrower privacy. Actual rates and terms vary by borrower, property, and market conditions. PeerSense is a capital advisory firm and does not directly originate loans.