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coopercash
2874 Posts |
Posted - 01/30/2008 : 05:38:46 AM
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The 2nd Quarter of 2009 indicated limited but welcome evidence that a number of commercial non-bank lenders are cautiously regaining their appetites for the RIGHT deal.
However, the impact of failed loan distress on Capmark Financial, one of the Nation's largest commercial lenders with a reported $2.2-BILLION of first Q '09 losses caused by borrower defaults (2nd Q evidenced close to another $700-million of defaults)has already cautioned most lenders to exercise extreme caution in how they evaluate risk.
Only the best "quality" deals will be approved and commercial brokers would do well to take time to really evaluate the opportunities they are presented with BEFORE submitting to a lender. Do not provide your client, whether seeking to finance a purchase, obtain a refi or secure a commercial construction loan with an unrealistic "opinion" with regard to % LTV or % LTC... rates or points until you know the FACTS.
Today, "He who has the gold REALLY DOES R-U-L-E" as never before. Also, many clients still believe that an existing appraisal conducted in 2008 or early '09 will be accepted by a lender. WRONG! Most lenders want a current MAI Certified appraisal and, at best, MAY agree to having a 4-6 month old appraisal re-certified by the originating appraiser IF that Company is on their approved list.
In most metro markets, values established in 2008 will have fallen by between 20%-30%. Commercial income producing properties (office and retail) are mostly reflecting 10%-25% vacancy factors which of course means that ability to achieve the debt to income ratios required by lenders is impacted.
"I am looking for a non-recourse loan!" Forget it. 99% of commercial lenders will be requiring personal guarantors on their loans.
"I want bank terms on my loan!" Forget it. Educate your client about today's realities which means Prime plus 3+ on EXCELLENT deals and 2+ lender points.
"I won't pay any front fees!" Forget it. 99% of commercial lenders will require a "lock fee" of between 0.15% and 0.25% payable when the client accepts the LOI.
"I need 90% LTV!" Forget it. 60% - 75% LTV is the new reality. On construction-to-mini perms think in terms of 60%-65% of cost. Maybe the possibility of a 5% "equity / mez" kicker which will cost the client around 18% + 4-5 Pts.
With regard to NEW commercial project construction, "State, zip code and location" are important keys. An independent Feasibility Study will be usually be requested on retail, office, hospitality and on Assisted Living projects as will an MAI Appraisal from a "Hallmark" provider.
Multi-family housing and student living projects are also of interest.
The game changer is that in today's environment the client needs to have at least 30% and sometimes as much as 40% of TOTAL PROJECT COST available in invest in their project. Mezz and equity "kickers" MAY be available for 5% of total cost.
Many developers are now having to "round up" private investors to come in with any equity deficiency and this has created a need for the developer to create a Private Placement Memorandum which in turn will be the subject of a Private Placement Offering.
One of my associates is a FL based SEC Registered Asset Management Company that can be commissioned to handle both the PPM and the PPO.
Success in commercial lending can be boiled down to three essential components: 1)A viable client; 2) A viable project or collateral; 3)As a broker/lo you need to have "control" over your client.
VIABLE CLIENT: In today's environment your client's personal credit history and ***et strength are vitally important. While a sub 600 mid FICO is not necessarily a major problem a lack of cash liquidity and reserves is a deal killer. In most cases, commercial lenders will be limiting their exposure to somewhere between 60% and 70% of project cost (if new construction or a development)and up to 75% LTV if a purchase or a refi.
VIABLE PROJECT/COLLATERAL: In the present uncertain economy ALL new "ground-up" projects whether a residential subdivision/master planned community, mixed use, commercial, retail, hospitality or resorts will be subject to intensive due diligence and our investment managers will be looking for a very solid Exit Strategy that is based on REALITY.
The prospects for lender support for sub-division and master planned community projects in 2009 will remain bleak until such time as the stringent home buyer mortgage lending guidelines are relaxed and certainly until consumers can regain sure-footed confidence that their jobs/incomes are not at immediate risk.
Once considered a "prime" sector... Senior LifeStyle Communities. The demand potential is there but a growing number of folks are unable to participate because they are unable to sell their present homes or are reconsidering their finances in the wake of major losses in the value of their stocks or 401K investments.
EXIT STRATEGY: This can be considered in one of three ways... 1)Sale of completed "units" (houses, offices, retail spaces etc)which will enable the client to fully pay-off the development/construction loan within an acceptable timeframe; 2) Leasing contracts or pre-lease L o Is for completed construction which will produce an income sufficient to meet all overhead costs and debt service plus an adequate margin; 3)Operating income in cases where the property will occupied by the client at completion as might be the case with a professional/medical center, or an automotive repair facility.
Multi-family projects (new development, purchase or refi of existing property) are evidencing strength given the fact that many victims of foreclosure will be seeking rental accommodation... in addition, to those folks who, 18+ months ago, would have been candidate for a sub-prime mortgage, are now resigning themselves to continue as renters unless they can qualify for a FHA or State Community HOusing Finance Program.
ENERGY related projects that make sense are also of interest provided that the fundamentals are solid and not based on "wishful thinking". In addition, clients need to understand that projects requiring DEBT financing must be backed by at least 20-25% cash invested by client.
In certain circumstances, UP TO 100% Project Financing can be provided for RENEWABLE ENERGY PRODUCTION and "Clean Tech" projects.
CONTROL OVER YOUR CLIENT: Without securing a commited relationship with your client your chances of achieving a successfully closed loan are dramatically reduced. YOU are the professional and you must be able to inspire and convince your client that YOU can secure their financing... ***uming of course that the client and their project is viable.
You need to secure a FEE AGREEMENT with your client BEFORE you start the search for funding. Your Fee needs to be reasonable because you will be seeking cooperation from the lender/investor in making your Fee Agreement a part of closing conditions. Believe me, if the lender is charging 1 - 3 Points you will NOT be able to charge your client 3, 4, or 5+ Pts and expect the lender to go along with that arrangement.
On a loan for $10-million or more be thinking in terms of 0.25% - 0.50% of loan amount!
Lenders do NOT like dealing with broker "daisy chains"! They will only communicate with their authorized "gatekeeper" who is the person ***igned to handle, review and present the initial intake information.
If your most appropriate source of financing is an Investment Bank, a Hedge Funder or a Hard Money Lender you will need to EDUCATE your client with regard to the need for them to pay DUE DILIGENCE fees to the investor.
Normal course of events is that if the investor expresses interest in the opportunity a conference call with the client will go in depth on the project. The investor may well be prepared to issue a provisional Term Sheet and a conditional L o I following that conference call. The L o I is 48-hours time-sensitive and requires that the client sign and return along with wiring their Due Diligence Fee.
Those Due Diligence fees cover the investor's costs for appraisal (or appraisal review), environmental and geologic reports, Title research, and in most cases travel costs because the investor will want to physically "kick the tires" and meet the client.
Those Due Diligence fees are NOT refundable to client if the investor declines the loan as a result of negative discoveries. In some cases the deal may be "saved" if the client agrees to changed loan terms.
Deals can also be considered in Mexico, Costa Rica, Panama, Belize, USVI, Dominican Republic and the Western Caribbean.
HARD MONEY APPRAISED VALUES: While HMLs will advertise lending "Up to 70% LTV" it is absolutely essential that you explain to your client that does NOT mean actual appraised fair market value! The appraisal will be "adjusted" by the HML underwriter to a price that the lender believes a buyer could be found within 90-120 days if the loan goes into foreclosure.
The HML will then base their loan on a percentage of that REDUCED value. Example: Property appraises at $1-million. "90-120 day" sales price 20% LESS = $800,000. 65% LTV = loan amount of $520,000. I am available to review your deals and I will give you some insights as to which of our investors would have interest. If the client and the deal make sense, we'll get it done!
My contact information provided below.
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crobers78
25 Posts |
Posted - 02/11/2008 : 12:36:35 AM
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Richard,
Can you send me some leads? Chris, 310-806-5016 or chris.roberson@met-west.com |
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VegasLoanz
57 Posts |
Posted - 02/27/2008 : 3:31:09 PM
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I have a developer that needs a private investor or JV partner. All the projects are in California. I have loans ranging from $2 million to $80 million. Please email or call me so we can discuss if any of these will fit your criteria. The borrower has a lot of experience and is realistic when it comes to DD fees and getting these projects funded. He is looking for minimal out of pocket money (other than DD or commitment fees).
Please let me know if you can help me with the financing for his 23 projects.
Thanks Val |
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coopercash
2874 Posts |
Posted - 02/28/2008 : 04:25:31 AM
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Val please check your email!
For the benefit of those who read this post please note my comments as follows:
The CA market evidences a major real estate contraction which primarily affects the residential sector (homes built for sale). Multi-family construction for rental management is potentially of interest and selective mixed-use, commercial, retail and hospitality projects are also open for review.
In current market conditions the project has to make absolute sense and that means that the Exit Strategy must withstand "extreme" due diligence. If a residential project is being considered in an area that is already saturated with unsold like product that has been on the market for longer than 120 days from completion date then it will be a NON-STARTER.
In addition any developer who is unable or unwilling to invest at least 15%-25% in CASH in their project is wasting his or her time seeking financing unless they can bring in a partner who has the cash to invest.
"But, my client owns their land outright with no debt, can't that be considered as their equity investment?" In today's conditions, we will look at fair market value and then discount to a point where we could attract a buyer within 90-120-days. Based on that discounted value we MAY allow up to 10% of project cost as an equity "credit" for land value.
"But, my client has already invested $XXXs in infrastructure and soft costs!" OK... if those expenditures can be PROVEN and the source of thos funds can also be verified as coming from the client then they may be considered at "full value".
In short... don't waste YOUR time chasing "rainbows" if your client does not have or is not willing to invest hard cash into their projects.
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BrianS
14 Posts |
Posted - 03/20/2008 : 07:05:56 AM
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Richard,
You spoke about securing fee agreements which I always do. In the case where you may help the client obtain equity from an investor how does this work. When do you get paid? Is there a closing on this as well? What should the fee agreement language state around when I would get paid on this type of transaction? Any comments would be helpful.
Thank You
Brian |
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coopercash
2874 Posts |
Posted - 03/20/2008 : 11:59:31 AM
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Brian...your Fee Agreement should include comprehensive description of the types of funding that you may be able to secure for your client. Send me a direct email and I will provide you with just such a format (coopercash@earthlink.net).
A point worth mentioning regarding Fee Agreements secured by Broker from clients on commercial deals. I routinely reject 95% of them for being outrageously "greedy"!
I care less whether the client was bamboozled into signing a 3, 4 or 5 Point Agreement with their Broker. If the loan size is substantial, maybe 1 Pt would be adequate compensation and on deals in excess of $25-million be thinking in terms of 0.50% or even 0.25%.
I have just concluded a $150-million funding brought to me by a referring Broker and we got to split a fee of 0.25%.
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clarenceworley
5655 Posts |
Posted - 04/12/2008 : 05:39:49 AM
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| 165k isn't bad in fees... |
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fcunnane3
152 Posts |
Posted - 06/02/2008 : 4:10:44 PM
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I represent a tax firm that specializes in cost segmentation. This will increase the standard depreciation from 1/39th to 1/5th per year.
These are fortune 500 tax exemptions that are bundled by our firm with tax attorneys & real estate attorneys to enable the individual investor to take advantage of these exemptions.
My firm pays $1,000 per closed referred deal and my firm is not compensated until the deal closes on our end.
Typically we are able to raise cap rates by 20%.
This is an excellent way to keep in contact with commercial clients.
Email me referrals at cpsloans@gmail.com
I strictly am not in the commercial lending business. |
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md21146
25 Posts |
Posted - 06/02/2008 : 4:28:07 PM
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| can you email me info - I have something that may be of interest |
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fcunnane3
152 Posts |
Posted - 06/04/2008 : 8:15:15 PM
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go to http://www.franciscunnane.com to read more about the cost seg.
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fcunnane3
152 Posts |
Posted - 06/09/2008 : 6:15:02 PM
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Sorry for hi-jacking the subject.
Frank. |
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md21146
25 Posts |
Posted - 07/28/2008 : 11:05:25 AM
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| please send your executive summary |
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EMScommercial
5141 Posts |
Posted - 10/07/2008 : 10:14:25 AM
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richard.... how have you been?.... hanging in there i hope....
as normal, well done with your post 'conversation'....
my add to this is to agree with you about the greed.... as a commercial broker, we never charge more than 3 points (and if we are working on it with a business partner ('co broker') then they would recieve half of whatever client paid broker fee we receive.... as the loan gets larger, the smaller fee we charge.... for example.... we have quite a few loans in here right now that are $250K - $5M... they will be charged 3 points.... but we also have a $110M deal.... we are charging 1 point broker fee (and splitting that with the referring broker (our business partner)...
one other point i will add.... we will also charge a refundable at closing (only) small application fee to stop the tire kicking.... this is charged at the time that we present our findings - quote letter, ncnd and broker contract to the borrower.... if they don't pay, we move on..... no hard feelings.... 'next'! |
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AMERICANMOD1
43 Posts |
Posted - 11/04/2008 : 08:20:21 AM
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| LOOKING FOR HARD MONEY LENDERS IN NY TO PARTICIPATE IN A BUSINESS SEMINAR ON LONG ISLAND NY. PLEASE CONTACT TONYA LEWTER AT 516-223-3855 |
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md21146
25 Posts |
Posted - 11/04/2008 : 08:43:34 AM
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Richard, what terms are you typically getting on residential development? Are you a direct lender or broker? I am working on 3 now Mary |
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tommybr4
34 Posts |
Posted - 11/04/2008 : 2:53:50 PM
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I actually just got off the phone with mr. woodry. I have quite a few deals that were just put in my lap ranging from 15 million to 155million. I would like to talk more in depth about a few of these projects as you may be a good partner for me to work with and help structure due to the size of thses loans. Please email me at tburnett@bollinmortgagegroup.com when you can so we can setup a time to talk. Thanks so much.
Tom |
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alfreda1
15 Posts |
Posted - 12/12/2008 : 5:16:50 PM
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We sit in sit in a 35,000 sq foot office right across form Angle Stadium. A full staff of dicated to service. Call us
The Firm Group, Inc.
. We have a team of expert Financial Professionals, and seasoned underwriters, that are always available to help you. All we need is a 1003, credit report, appraisal (pictures) and clients proof of ability to make proposed payments. So make the decision to increase your earnings now, and send us all your commercial and hard money business. Let us provide the expertise and do the work, while you make the money. We are very broker friendly, and we are licensed professionals, so call us today and we’ll send you the info needed to take advantage of this great opportunity.
CONTACT INFOMATION ASK TO SPEAK WITH A FINANCIAL SPECIALIST DIRECT: 714-735-4064 FAX: 714-260-0994 WWW.THEFIRMGROUPINC.COM EMAIL ALL SCENARIOS & SUBMISSIONS TO: SUBMISSIONS@THEFIRMGROUPINC.COM |
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ashley4see
9 Posts |
Posted - 02/20/2009 : 5:24:06 PM
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Are you looking for back-end processing company for loan modification (Residential & Commercial) Look below for the following futures our company can offer:
• In-house team of lawyers and negotiators • Process all 50 states • Pre-Qual Software—used for pre-qual, submission, and real time tracking. • 1 Loan Modification Web-Site • Advance Fee Agreement—to get your company approved with the DRE • Toll Free 1-800# • Follow up with your clients every week • Hosted pipeline view and 24/7 customer service • Private label customer service • Private label disclosure • Short sale approval processing •
Ashley Turng Office: 949.294.1463
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ejortiz
361 Posts |
Posted - 05/28/2009 : 12:43:06 PM
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Hi Richard,
Hope you doing well. Is it possible for me to get a copy of your agreement. Thank you in advance.
EJ Ortiz Cell: (786) 566-3002
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comcapital
25 Posts |
Posted - 07/20/2009 : 11:11:09 PM
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I have a Private Equity Fund that will finance solid projects for solid principals in stable areas that are shovel ready. Shovel ready means that the principal has already invested significant capital into the project. If the principal is solid financially and has at least .25% liquid, there may be an option for International deals over $50M. ZERO upfront cost. No Application Fee allowed. Another option for US deals over $25M. Experienced and active fund. Feel free to contact me directly for details. You may have some recent deals that have fallen out elsewhere. No risk. Max 1% Broker Fee, we split it. |
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DTSSERVICES
16 Posts |
Posted - 07/22/2009 : 3:13:23 PM
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Commercial Hard money loans up to 75% LTV $500k to $50 Million Available Nationwide No Credit Checks - A TRUE SISA (Stated Income Stated Assets) Must be income producing property (even if they are not performing at present). (Multifamily, Office, Retail, Flag Hotel, etc.) 1 to 3 Year Terms, Interest Only Available We use your appraisal or BPO Low due diligence (starting at $1,095) refunded upon approval for funding Letter of Intent detailing loan terms will be issued with preliminary pre-approval within 72 hours of receipt of Executed Loan Documents. Quick Closings, 2-3 weeks possible (rush fee applies)
Email All Scenarios & Submissions To: esg2@live.com
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coopercash
2874 Posts |
Posted - 07/23/2009 : 03:48:12 AM
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AUNDRA, ASHLEY, A MOORE ,MICHELLE AND OTHERS: I suppose that I should be "flattered" that you chose to "piggy-back" your commercial announcement on my posting! However, I would respectfully advise you and others who may be tempted to do so that such "add-ons" are NOT appreciated.
I suggest that you take the time to establish your own stand-alone ANNOUNCEMENT rather than "parasitically" attach your solicitation to someone elses. |
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nomore1940
6 Posts |
Posted - 07/26/2009 : 9:10:34 PM
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| Do you lend Hard Money on fully approved, completed and ready to go residential building lots in an already existing subdivision? 40 LTV Purchase of 25 lots worth $3.4 million in the Carolinas.. Borrower has $250,000 down on contract. Thanks |
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coopercash
2874 Posts |
Posted - 07/27/2009 : 03:54:38 AM
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The answer to your question is that it MAY be possible to secure financing. Whether or not your target % LTV can be achieved is doubtful and much will depend on location, and an analysis of the proposed Exit Strategy. If one of our investors provides a short term hard money loan for 12-18 months how certain can he be that the borrower will be able to repay the loan. Rate sand points will be "ugly".
I also need to know what the "bigger picture" is. Having purchase the lots, what is the game plan? Based on that information, I may have an alternative approach which could achieve a larger goal on better terms.
Please send me a direct email with an Executive Summary: coopercash@earthlink.net |
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toddbrokerworld
125 Posts |
Posted - 07/30/2009 : 8:54:21 PM
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PDCG Call today
About : http://brokerworld.ca/?page_id=219
Private Capital individual investors with 100k to 10 million to take over assignments
USA/Canada
Private Capital investment groups with 1 million to 100 million to take over assignments
Commercial Loans NO LOI or Term Sheet Charges just T.P.F. Hard Money Residential 12% / Max Pts per State / 50% LTV Business Loans 50k + (40+ Direct Lenders approved) Commerical and Residential Loan Mods Business Brokering and Public Company Shells
Todd A Taylor. CEO Platinum Direct Capital Group Wilmington Executives Offices 1521 Concord Pike (US 202) Suite 301 Wilmington, DE 19803 ttaylor19@gmail.com todd@brokerworld.ca 778-861-9997 716-568-4569 www.platinumdirectcapitalgroup.com www.brokerworld.ca
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commercialrelief
24 Posts |
Posted - 08/26/2009 : 09:18:02 AM
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Cost Segregation which requires an engineering study will help your clients better qualify for purchasing any commercial property. It reduces taxable income and increases cash flow. Every commercial property owner or those looking to buy should perform this study. Call me for details. David 818.661.0410
quote: Originally posted by coopercash
Over the past 2-3 months I have seen limited but welcome evidence that a number of commercial non-bank lenders are cautiously regaining their appetites for the RIGHT deal.
With regard to NEW commercial project construction, "State, zip code and location" are important keys. An independent Feasibility Study will be usually be requested on retail, office, hospitality and on Assisted Living projects as will an MAI Appraisal from a "Hallmark" provider.
Multi-family housing and student living projects are also of interest.
The game changer is that in today's environment the client needs to have at least 30% and sometimes as much as 40% of TOTAL PROJECT COST available in invest in their project. Mezz and equity "kickers" MAY be available for 5% of total cost.
Many developers are now having to "round up" private investors to come in with any equity deficiency and this has created a need for the developer to create a Private Placement Memorandum which in turn will be the subject of a Private Placement Offering.
One of my associates is a FL based SEC Registered Asset Management Company that can be commissioned to handle both the PPM and the PPO.
Success in commercial lending can be boiled down to three essential components: 1)A viable client; 2) A viable project or collateral; 3)As a broker/lo you need to have "control" over your client.
VIABLE CLIENT: In today's environment your client's personal credit history and ***et strength are vitally important. While a sub 600 mid FICO is not necessarily a major problem a lack of cash liquidity and reserves is a deal killer. In most cases, commercial lenders will be limiting their exposure to somewhere between 60% and 70% of project cost (if new construction or a development)and up to 75% LTV if a purchase or a refi.
VIABLE PROJECT/COLLATERAL: In the present uncertain economy ALL new "ground-up" projects whether a residential subdivision/master planned community, mixed use, commercial, retail, hospitality or resorts will be subject to intensive due diligence and our investment managers will be looking for a very solid Exit Strategy that is based on REALITY.
The prospects for lender support for sub-division and master planned community projects in 2009 will remain bleak until such time as the stringent home buyer mortgage lending guidelines are relaxed and certainly until consumers can regain sure-footed confidence that their jobs/incomes are not at immediate risk.
Once considered a "prime" sector... Senior LifeStyle Communities. The demand potential is there but a growing number of folks are unable to participate because they are unable to sell their present homes or are reconsidering their finances in the wake of major losses in the value of their stocks or 401K investments.
EXIT STRATEGY: This can be considered in one of three ways... 1)Sale of completed "units" (houses, offices, retail spaces etc)which will enable the client to fully pay-off the development/construction loan within an acceptable timeframe; 2) Leasing contracts or pre-lease L o Is for completed construction which will produce an income sufficient to meet all overhead costs and debt service plus an adequate margin; 3)Operating income in cases where the property will occupied by the client at completion as might be the case with a professional/medical center, or an automotive repair facility.
Multi-family projects (new development, purchase or refi of existing property) are evidencing strength given the fact that many victims of foreclosure will be seeking rental accommodation... in addition, to those folks who, 18+ months ago, would have been candidate for a sub-prime mortgage, are now resigning themselves to continue as renters unless they can qualify for a FHA or State Community HOusing Finance Program.
ENERGY related projects that make sense are also of interest provided that the fundamentals are solid and not based on "wishful thinking". In addition, clients need to understand that projects requiring DEBT financing must be backed by at least 20-25% cash invested by client.
In certain circumstances, UP TO 100% Project Financing can be provided for RENEWABLE ENERGY PRODUCTION and "Clean Tech" projects.
CONTROL OVER YOUR CLIENT: Without securing a commited relationship with your client your chances of achieving a successfully closed loan are dramatically reduced. YOU are the professional and you must be able to inspire and convince your client that YOU can secure their financing... ***uming of course that the client and their project is viable.
You need to secure a FEE AGREEMENT with your client BEFORE you start the search for funding. Your Fee needs to be reasonable because you will be seeking cooperation from the lender/investor in making your Fee Agreement a part of closing conditions. Believe me, if the lender is charging 1 - 3 Points you will NOT be able to charge your client 3, 4, or 5+ Pts and expect the lender to go along with that arrangement.
On a loan for $10-million or more be thinking in terms of 0.25% - 0.50% of loan amount!
Lenders do NOT like dealing with broker "daisy chains"! They will only communicate with their authorized "gatekeeper" who is the person ***igned to handle, review and present the initial intake information.
If your most appropriate source of financing is an Investment Bank, a Hedge Funder or a Hard Money Lender you will need to EDUCATE your client with regard to the need for them to pay DUE DILIGENCE fees to the investor.
Normal course of events is that if the investor expresses interest in the opportunity a conference call with the client will go in depth on the project. The investor may well be prepared to issue a provisional Term Sheet and a conditional L o I following that conference call. The L o I is 48-hours time-sensitive and requires that the client sign and return along with wiring their Due Diligence Fee.
Those Due Diligence fees cover the investor's costs for appraisal (or appraisal review), environmental and geologic reports, Title research, and in most cases travel costs because the investor will want to physically "kick the tires" and meet the client.
Those Due Diligence fees are NOT refundable to client if the investor declines the loan as a result of negative discoveries. In some cases the deal may be "saved" if the client agrees to changed loan terms.
Deals can also be considered in Mexico, Costa Rica, Panama, Belize, USVI, Dominican Republic and the Western Caribbean.
HARD MONEY APPRAISED VALUES: While HMLs will advertise lending "Up to 70% LTV" it is absolutely essential that you explain to your client that does NOT mean actual appraised fair market value! The appraisal will be "adjusted" by the HML underwriter to a price that the lender believes a buyer could be found within 90-120 days if the loan goes into foreclosure.
The HML will then base their loan on a percentage of that REDUCED value. Example: Property appraises at $1-million. "90-120 day" sales price 20% LESS = $800,000. 65% LTV = loan amount of $520,000. I am available to review your deals and I will give you some insights as to which of our investors would have interest. If the client and the deal make sense, we'll get it done!
My contact information provided below.
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dang007
129 Posts |
Posted - 08/29/2009 : 8:52:06 PM
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If you need a reliable title and settlement company with great service we would love to work with you.
- We are licensed in all 50 states.
- Fast turnaround times of 24-72 hours
***Note*** We were previously working at 24-48 hours but due to the recession and budget cuts many local county governments around the country have shorteded their working hours and/or shortened the number of weekdays they are open for business. This affects our ability to do what we do with the quick turnaround times we normally provide.
If you have your own title closer , please send their resume over and if they qualify we will add them to our roster of title closers we will allow you to use your own title closer to close out your loans.
- Call me about our company's online ordering system - fast, convenient and user friendly !
- We Pay Incentives For Your Business. We will match what you are currently being paid by anothe firm. Within reason of course !
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maclin
900 Posts |
Posted - 10/06/2009 : 08:13:11 AM
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| I can't speak for anyone else nor would I ever want to. When I find a great thread like this where the originator of the thread is doing exactly what BO was founded on,(trying to HELP brokers get ahead) especially in today's market, and I find some person trying to piggyback on someone elses thread, I record their name and there companies name then I make sure no matter what NEVER to do business with them. I don't have time to waste, and my clients don't have time or money to waste so I go to the old tried and trusted and proven people to have my clients associated with and Richard Cooper is just that person.I don't waste my clients time and I do NOT take chances, if someone would try and STEAL someone's thread, well they also might try and STEAL my clients money and where I take my client does and should hold me directly responsible for what happens to them. Bottom line don't take chances with your client and lose your reputation, after all happy clients are the very best source for more business so I'll stick with the "ROCK" and stick with Richard Cooper |
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maclin
900 Posts |
Posted - 10/06/2009 : 08:13:47 AM
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| good luck |
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ALBY
259 Posts |
Posted - 10/22/2009 : 11:55:46 AM
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What exactly is going on on the commercial market right now...is it dead..or are deals...purchases or refis...still getting done at all?
Just curious. |
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coopercash
2874 Posts |
Posted - 10/22/2009 : 12:16:42 PM
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| "AJ" based on what I presently have in various stages of progression, the reality is that on MOST types of commercial property lenders are offering around 50% LTV and about the same on refis and then ONLY on superior deals with above average debt service coverage ratios. Commercial construction-to-mini-perm, I just had a VERY STRONG deal that was seeking 65% LTC until the MAI appraisal came back showing a STABILISED VALUE that was LESS than cost to complete. Now the client has to round-up an additional 18% CASH to bring to the table! |
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ALBY
259 Posts |
Posted - 10/22/2009 : 12:21:42 PM
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| As somebody once said..."neither a borrower or lender be"... nothing good is happening anywhere is real estate these days and it doesn't look like it will improve for some time. |
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maclin
900 Posts |
Posted - 10/22/2009 : 2:22:57 PM
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AJ, when times are good or times are bad there are still Americans that need jobs and have familys to feed. All of us simply need to work harder and learn to think out of the box and be more creative. I absolutely love my job and my country, perhaps that's why I work seven days a week and put in long hours. there is always oportunity for those who are willing. It is common for me to get many calls on the weekend or at night, work hard and above all be honest, be the first to point out the problem with a new deal you'll find others eager to help you IF there is a way to help. If the job was easy then every boyscout would be doing it. They dont come anymore honest or loyal than my friend Richard Cooper so hang in therequote: Originally posted by ALBY
As somebody once said..."neither a borrower or lender be"... nothing good is happening anywhere is real estate these days and it doesn't look like it will improve for some time.
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smithami
256 Posts |
Posted - 10/26/2009 : 07:35:21 AM
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quote: Originally posted by coopercash
The 2nd Quarter of 2009 indicated limited but welcome evidence that a number of commercial non-bank lenders are cautiously regaining their appetites for the RIGHT deal.
However, the impact of failed loan distress on Capmark Financial, one of the Nation's largest commercial lenders with a reported $2.2-BILLION of first Q '09 losses caused by borrowr defaults (2nd Q evidenced close to another $700-million of defaults)has already cautioned most lenders to exercise extreme caution in how they evaluate risk.
Only the best "quality" deals will be approved and commercial brokers would do well to take time to really evaluate the opportunities they are presented with BEFORE submitting to a lender. Do not provide your client, whether seeking to finance a purchase, obtain a refi or secure a commercial construction loan with an unrealistic "opinion" with regard to % LTV or % LTC... rates or points until you know the FACTS.
Today, "He who has the gold REALLY DOES R-U-L-E" as never before. Also, many clients still believe that an existing appraisal conducted in 2008 or early '09 will be accepted by a lender. WRONG! Most lenders want a current MAI Certified appraisal and, at best, MAY agree to having a 4-6 month old appraisal re-certified by the originating appraiser IF that Company is on their approved list.
In most metro markets, values established in 2008 will have fallen by between 20%-30%. Commercial income producing properties (office and retail) are mostly reflecting 10%-25% vacancy factors which of course means that ability to achieve the debt to income ratios required by lenders is impacted.
"I am looking for a non-recourse loan!" Forget it. 99% of commercial lenders will be requiring personal guarantors on their loans.
"I want bank terms on my loan!" Forget it. Educate your client about today's realities which means Prime plus 3+ on EXCELLENT deals and 2+ lender points.
"I won't pay any front fees!" Forget it. 99% of commercial lenders will require a "lock fee" of between 0.15% and 0.25% payable when the client accepts the LOI.
"I need 90% LTV!" Forget it. 60% - 75% LTV is the new reality. On construction-to-mini perms think in terms of 60%-65% of cost. Maybe the possibility of a 5% "equity / mez" kicker which will cost the client around 18% + 4-5 Pts.
With regard to NEW commercial project construction, "State, zip code and location" are important keys. An independent Feasibility Study will be usually be requested on retail, office, hospitality and on Assisted Living projects as will an MAI Appraisal from a "Hallmark" provider.
Multi-family housing and student living projects are also of interest.
The game changer is that in today's environment the client needs to have at least 30% and sometimes as much as 40% of TOTAL PROJECT COST available in invest in their project. Mezz and equity "kickers" MAY be available for 5% of total cost.
Many developers are now having to "round up" private investors to come in with any equity deficiency and this has created a need for the developer to create a Private Placement Memorandum which in turn will be the subject of a Private Placement Offering.
One of my associates is a FL based SEC Registered Asset Management Company that can be commissioned to handle both the PPM and the PPO.
Success in commercial lending can be boiled down to three essential components: 1)A viable client; 2) A viable project or collateral; 3)As a broker/lo you need to have "control" over your client.
VIABLE CLIENT: In today's environment your client's personal credit history and ***et strength are vitally important. While a sub 600 mid FICO is not necessarily a major problem a lack of cash liquidity and reserves is a deal killer. In most cases, commercial lenders will be limiting their exposure to somewhere between 60% and 70% of project cost (if new construction or a development)and up to 75% LTV if a purchase or a refi.
VIABLE PROJECT/COLLATERAL: In the present uncertain economy ALL new "ground-up" projects whether a residential subdivision/master planned community, mixed use, commercial, retail, hospitality or resorts will be subject to intensive due diligence and our investment managers will be looking for a very solid Exit Strategy that is based on REALITY.
The prospects for lender support for sub-division and master planned community projects in 2009 will remain bleak until such time as the stringent home buyer mortgage lending guidelines are relaxed and certainly until consumers can regain sure-footed confidence that their jobs/incomes are not at immediate risk.
Once considered a "prime" sector... Senior LifeStyle Communities. The demand potential is there but a growing number of folks are unable to participate because they are unable to sell their present homes or are reconsidering their finances in the wake of major losses in the value of their stocks or 401K investments.
EXIT STRATEGY: This can be considered in one of three ways... 1)Sale of completed "units" (houses, offices, retail spaces etc)which will enable the client to fully pay-off the development/construction loan within an acceptable timeframe; 2) Leasing contracts or pre-lease L o Is for completed construction which will produce an income sufficient to meet all overhead costs and debt service plus an adequate margin; 3)Operating income in cases where the property will occupied by the client at completion as might be the case with a professional/medical center, or an automotive repair facility.
Multi-family projects (new development, purchase or refi of existing property) are evidencing strength given the fact that many victims of foreclosure will be seeking rental accommodation... in addition, to those folks who, 18+ months ago, would have been candidate for a sub-prime mortgage, are now resigning themselves to continue as renters unless they can qualify for a FHA or State Community HOusing Finance Program.
ENERGY related projects that make sense are also of interest provided that the fundamentals are solid and not based on "wishful thinking". In addition, clients need to understand that projects requiring DEBT financing must be backed by at least 20-25% cash invested by client.
In certain circumstances, UP TO 100% Project Financing can be provided for RENEWABLE ENERGY PRODUCTION and "Clean Tech" projects.
CONTROL OVER YOUR CLIENT: Without securing a commited relationship with your client your chances of achieving a successfully closed loan are dramatically reduced. YOU are the professional and you must be able to inspire and convince your client that YOU can secure their financing... ***uming of course that the client and their project is viable.
You need to secure a FEE AGREEMENT with your client BEFORE you start the search for funding. Your Fee needs to be reasonable because you will be seeking cooperation from the lender/investor in making your Fee Agreement a part of closing conditions. Believe me, if the lender is charging 1 - 3 Points you will NOT be able to charge your client 3, 4, or 5+ Pts and expect the lender to go along with that arrangement.
On a loan for $10-million or more be thinking in terms of 0.25% - 0.50% of loan amount!
Lenders do NOT like dealing with broker "daisy chains"! They will only communicate with their authorized "gatekeeper" who is the person ***igned to handle, review and present the initial intake information.
If your most appropriate source of financing is an Investment Bank, a Hedge Funder or a Hard Money Lender you will need to EDUCATE your client with regard to the need for them to pay DUE DILIGENCE fees to the investor.
Normal course of events is that if the investor expresses interest in the opportunity a conference call with the client will go in depth on the project. The investor may well be prepared to issue a provisional Term Sheet and a conditional L o I following that conference call. The L o I is 48-hours time-sensitive and requires that the client sign and return along with wiring their Due Diligence Fee.
Those Due Diligence fees cover the investor's costs for appraisal (or appraisal review), environmental and geologic reports, Title research, and in most cases travel costs because the investor will want to physically "kick the tires" and meet the client.
Those Due Diligence fees are NOT refundable to client if the investor declines the loan as a result of negative discoveries. In some cases the deal may be "saved" if the client agrees to changed loan terms.
Deals can also be considered in Mexico, Costa Rica, Panama, Belize, USVI, Dominican Republic and the Western Caribbean.
HARD MONEY APPRAISED VALUES: While HMLs will advertise lending "Up to 70% LTV" it is absolutely essential that you explain to your client that does NOT mean actual appraised fair market value! The appraisal will be "adjusted" by the HML underwriter to a price that the lender believes a buyer could be found within 90-120 days if the loan goes into foreclosure.
The HML will then base their loan on a percentage of that REDUCED value. Example: Property appraises at $1-million. "90-120 day" sales price 20% LESS = $800,000. 65% LTV = loan amount of $520,000. I am available to review your deals and I will give you some insights as to which of our investors would have interest. If the client and the deal make sense, we'll get it done!
My contact information provided below.
How solid this is!!! |
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smithami
256 Posts |
Posted - 10/26/2009 : 07:35:29 AM
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quote: Originally posted by coopercash
The 2nd Quarter of 2009 indicated limited but welcome evidence that a number of commercial non-bank lenders are cautiously regaining their appetites for the RIGHT deal.
However, the impact of failed loan distress on Capmark Financial, one of the Nation's largest commercial lenders with a reported $2.2-BILLION of first Q '09 losses caused by borrowr defaults (2nd Q evidenced close to another $700-million of defaults)has already cautioned most lenders to exercise extreme caution in how they evaluate risk.
Only the best "quality" deals will be approved and commercial brokers would do well to take time to really evaluate the opportunities they are presented with BEFORE submitting to a lender. Do not provide your client, whether seeking to finance a purchase, obtain a refi or secure a commercial construction loan with an unrealistic "opinion" with regard to % LTV or % LTC... rates or points until you know the FACTS.
Today, "He who has the gold REALLY DOES R-U-L-E" as never before. Also, many clients still believe that an existing appraisal conducted in 2008 or early '09 will be accepted by a lender. WRONG! Most lenders want a current MAI Certified appraisal and, at best, MAY agree to having a 4-6 month old appraisal re-certified by the originating appraiser IF that Company is on their approved list.
In most metro markets, values established in 2008 will have fallen by between 20%-30%. Commercial income producing properties (office and retail) are mostly reflecting 10%-25% vacancy factors which of course means that ability to achieve the debt to income ratios required by lenders is impacted.
"I am looking for a non-recourse loan!" Forget it. 99% of commercial lenders will be requiring personal guarantors on their loans.
"I want bank terms on my loan!" Forget it. Educate your client about today's realities which means Prime plus 3+ on EXCELLENT deals and 2+ lender points.
"I won't pay any front fees!" Forget it. 99% of commercial lenders will require a "lock fee" of between 0.15% and 0.25% payable when the client accepts the LOI.
"I need 90% LTV!" Forget it. 60% - 75% LTV is the new reality. On construction-to-mini perms think in terms of 60%-65% of cost. Maybe the possibility of a 5% "equity / mez" kicker which will cost the client around 18% + 4-5 Pts.
With regard to NEW commercial project construction, "State, zip code and location" are important keys. An independent Feasibility Study will be usually be requested on retail, office, hospitality and on Assisted Living projects as will an MAI Appraisal from a "Hallmark" provider.
Multi-family housing and student living projects are also of interest.
The game changer is that in today's environment the client needs to have at least 30% and sometimes as much as 40% of TOTAL PROJECT COST available in invest in their project. Mezz and equity "kickers" MAY be available for 5% of total cost.
Many developers are now having to "round up" private investors to come in with any equity deficiency and this has created a need for the developer to create a Private Placement Memorandum which in turn will be the subject of a Private Placement Offering.
One of my associates is a FL based SEC Registered Asset Management Company that can be commissioned to handle both the PPM and the PPO.
Success in commercial lending can be boiled down to three essential components: 1)A viable client; 2) A viable project or collateral; 3)As a broker/lo you need to have "control" over your client.
VIABLE CLIENT: In today's environment your client's personal credit history and ***et strength are vitally important. While a sub 600 mid FICO is not necessarily a major problem a lack of cash liquidity and reserves is a deal killer. In most cases, commercial lenders will be limiting their exposure to somewhere between 60% and 70% of project cost (if new construction or a development)and up to 75% LTV if a purchase or a refi.
VIABLE PROJECT/COLLATERAL: In the present uncertain economy ALL new "ground-up" projects whether a residential subdivision/master planned community, mixed use, commercial, retail, hospitality or resorts will be subject to intensive due diligence and our investment managers will be looking for a very solid Exit Strategy that is based on REALITY.
The prospects for lender support for sub-division and master planned community projects in 2009 will remain bleak until such time as the stringent home buyer mortgage lending guidelines are relaxed and certainly until consumers can regain sure-footed confidence that their jobs/incomes are not at immediate risk.
Once considered a "prime" sector... Senior LifeStyle Communities. The demand potential is there but a growing number of folks are unable to participate because they are unable to sell their present homes or are reconsidering their finances in the wake of major losses in the value of their stocks or 401K investments.
EXIT STRATEGY: This can be considered in one of three ways... 1)Sale of completed "units" (houses, offices, retail spaces etc)which will enable the client to fully pay-off the development/construction loan within an acceptable timeframe; 2) Leasing contracts or pre-lease L o Is for completed construction which will produce an income sufficient to meet all overhead costs and debt service plus an adequate margin; 3)Operating income in cases where the property will occupied by the client at completion as might be the case with a professional/medical center, or an automotive repair facility.
Multi-family projects (new development, purchase or refi of existing property) are evidencing strength given the fact that many victims of foreclosure will be seeking rental accommodation... in addition, to those folks who, 18+ months ago, would have been candidate for a sub-prime mortgage, are now resigning themselves to continue as renters unless they can qualify for a FHA or State Community HOusing Finance Program.
ENERGY related projects that make sense are also of interest provided that the fundamentals are solid and not based on "wishful thinking". In addition, clients need to understand that projects requiring DEBT financing must be backed by at least 20-25% cash invested by client.
In certain circumstances, UP TO 100% Project Financing can be provided for RENEWABLE ENERGY PRODUCTION and "Clean Tech" projects.
CONTROL OVER YOUR CLIENT: Without securing a commited relationship with your client your chances of achieving a successfully closed loan are dramatically reduced. YOU are the professional and you must be able to inspire and convince your client that YOU can secure their financing... ***uming of course that the client and their project is viable.
You need to secure a FEE AGREEMENT with your client BEFORE you start the search for funding. Your Fee needs to be reasonable because you will be seeking cooperation from the lender/investor in making your Fee Agreement a part of closing conditions. Believe me, if the lender is charging 1 - 3 Points you will NOT be able to charge your client 3, 4, or 5+ Pts and expect the lender to go along with that arrangement.
On a loan for $10-million or more be thinking in terms of 0.25% - 0.50% of loan amount!
Lenders do NOT like dealing with broker "daisy chains"! They will only communicate with their authorized "gatekeeper" who is the person ***igned to handle, review and present the initial intake information.
If your most appropriate source of financing is an Investment Bank, a Hedge Funder or a Hard Money Lender you will need to EDUCATE your client with regard to the need for them to pay DUE DILIGENCE fees to the investor.
Normal course of events is that if the investor expresses interest in the opportunity a conference call with the client will go in depth on the project. The investor may well be prepared to issue a provisional Term Sheet and a conditional L o I following that conference call. The L o I is 48-hours time-sensitive and requires that the client sign and return along with wiring their Due Diligence Fee.
Those Due Diligence fees cover the investor's costs for appraisal (or appraisal review), environmental and geologic reports, Title research, and in most cases travel costs because the investor will want to physically "kick the tires" and meet the client.
Those Due Diligence fees are NOT refundable to client if the investor declines the loan as a result of negative discoveries. In some cases the deal may be "saved" if the client agrees to changed loan terms.
Deals can also be considered in Mexico, Costa Rica, Panama, Belize, USVI, Dominican Republic and the Western Caribbean.
HARD MONEY APPRAISED VALUES: While HMLs will advertise lending "Up to 70% LTV" it is absolutely essential that you explain to your client that does NOT mean actual appraised fair market value! The appraisal will be "adjusted" by the HML underwriter to a price that the lender believes a buyer could be found within 90-120 days if the loan goes into foreclosure.
The HML will then base their loan on a percentage of that REDUCED value. Example: Property appraises at $1-million. "90-120 day" sales price 20% LESS = $800,000. 65% LTV = loan amount of $520,000. I am available to review your deals and I will give you some insights as to which of our investors would have interest. If the client and the deal make sense, we'll get it done!
My contact information provided below.
How solid this is!!! |
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