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jroseth
41 Posts |
 Posted - 03/30/2008 : 11:58:14 AM
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| How hard is it for commercial lenders to actually tell the truth, that they are actually a lender, and not brokering the loan 3 ways to Sunday. And why is it impossible to get a 77% LTV 80% LTC construction to perm loan done a 17 unit apartment building!!! Until you lenders convince me that everyone is going to start living in tents, then with the residential foreclosures the market rate apartment buildings is what should be easy to do. If any of you lenders have the guts to look me in the eye and tell me you are the lender with the money, and you want to look at a 77% LTV 80% LTC with the buyer putting up 8% of his own money, and the difference being his developer and construction fee then email me. Also the borrower happens to have 25 years development experience, a 790+ credit score, and about 1.2M net worth, and about 400K liquid. I am only looking for a 1.6M loan!!!! |
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CoolMtgGuy
2023 Posts |
Posted - 03/30/2008 : 12:02:21 PM
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| Commercial transactions is like the wild, wild west. Anyone coming from residential to commercial transactions should not expect much, if any, similarities. Caveat emptor is the rule de jour. |
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ppulatie
2209 Posts |
Posted - 03/30/2008 : 12:13:24 PM
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Look out. Waiting for Steve to stop tanning and reply.
Battlelines to be drawn. |
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brokerintheskye
2374 Posts |
Posted - 03/30/2008 : 12:30:48 PM
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quote:
Originally posted by ppulatie
Look out. Waiting for Steve to stop tanning and reply.
Battlelines to be drawn.
Isn't it cloudy in FL today??? |
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ppulatie
2209 Posts |
Posted - 03/30/2008 : 12:36:46 PM
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| No, not where Steve was. He was going to try and become tanzilla. |
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brokerintheskye
2374 Posts |
Posted - 03/30/2008 : 12:39:31 PM
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quote:
Originally posted by ppulatie
No, not where Steve was. He was going to try and become tanzilla.
Well if you are going ot have goals.... |
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mortgagemessiah
7907 Posts |
Posted - 03/30/2008 : 12:43:18 PM
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| It is the wild west. I always recommend to people coming over from the residential side to co-broker with an experienced commercial broker for your first 4 or 5 deals so you can learn. The most common mistake that newbies make is they assume it's regulated and the lender is automatically going to pay them. They assume that because someone claims to be "direct lender" or "wholesale commercial lender" they are. There is no such thing in commercial lending. The only direct lenders are banks and hedge funds. Most "direct lenders" are brokers in disguise. If you want to get get paid make sure you have fee agreement signed by you and the client before you shop the deal. If you don't, the source could steal your client and you don't get paid. It's part of the industry that you really need to know what you are doing. Commercial Lending is the Major Leagues of lending compared to residential. Also, beware the guys who claim your deal is slam dunk with out seeing the entire file. A good commercial broker or lending source will want to see an entire file before saying the file is doable. |
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seanwright1
135 Posts |
Posted - 03/30/2008 : 12:52:09 PM
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I can slam this shut for you. Email me the deal and kick back. Don't stress anymore. I'll take it from here and before it you will have a commission check to celebrate with. The commission breakdown will be hammered out at closing.
quote:
Originally posted by jroseth
How hard is it for commercial lenders to actually tell the truth, that they are actually a lender, and not brokering the loan 3 ways to Sunday. And why is it impossible to get a 77% LTV 80% LTC construction to perm loan done a 17 unit apartment building!!! Until you lenders convince me that everyone is going to start living in tents, then with the residential foreclosures the market rate apartment buildings is what should be easy to do. If any of you lenders have the guts to look me in the eye and tell me you are the lender with the money, and you want to look at a 77% LTV 80% LTC with the buyer putting up 8% of his own money, and the difference being his developer and construction fee then email me. Also the borrower happens to have 25 years development experience, a 790+ credit score, and about 1.2M net worth, and about 400K liquid. I am only looking for a 1.6M loan!!!!
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jroseth
41 Posts |
Posted - 03/30/2008 : 1:33:58 PM
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| Sean you think this is a slam shut loan, how long will it take you to issue a commitment letter, not an (LOI)? |
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ppulatie
2209 Posts |
Posted - 03/30/2008 : 1:54:04 PM
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quote:
Originally posted by seanwright1
I can slam this shut for you. Email me the deal and kick back. Don't stress anymore. I'll take it from here and before it you will have a commission check to celebrate with. The commission breakdown will be hammered out at closing.
quote:
Originally posted by jroseth
How hard is it for commercial lenders to actually tell the truth, that they are actually a lender, and not brokering the loan 3 ways to Sunday. And why is it impossible to get a 77% LTV 80% LTC construction to perm loan done a 17 unit apartment building!!! Until you lenders convince me that everyone is going to start living in tents, then with the residential foreclosures the market rate apartment buildings is what should be easy to do. If any of you lenders have the guts to look me in the eye and tell me you are the lender with the money, and you want to look at a 77% LTV 80% LTC with the buyer putting up 8% of his own money, and the difference being his developer and construction fee then email me. Also the borrower happens to have 25 years development experience, a 790+ credit score, and about 1.2M net worth, and about 400K liquid. I am only looking for a 1.6M loan!!!!
Haha....the commission breakdown will be hammered out at closing. No guarantees until then?
Now we know how to make 1m per year in this environment. |
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philinpdx
635 Posts |
Posted - 03/30/2008 : 1:54:51 PM
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| "the commission breakdown will be hammered out at closing"? You're joking right? lol |
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ppulatie
2209 Posts |
Posted - 03/30/2008 : 1:58:13 PM
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| Glad someone else picked up on that. |
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neversaynever
1022 Posts |
Posted - 03/30/2008 : 3:47:44 PM
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I think it was a joke, at least that's how I read it. No one would be so stupid as to accept terms like that, although I am going to try and pitch that to a borrower Monday.
Sir, we will do your loan and and close it fast, I'll get to fees and rate at the closing, thanks. |
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hherrm
1340 Posts |
Posted - 03/30/2008 : 4:18:00 PM
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[quote]Originally posted by seanwright1
I can slam this shut for you. Email me the deal and kick back. Don't stress anymore. I'll take it from here and before it you will have a commission check to celebrate with. The commission breakdown will be hammered out at closing.
[quote][i]
Haha, I think this has to be a joke. But you'll never know, there is a dumb person born everyday. Some LO may just kick back and wait for closing. And then come on here screaming that a broker that he thought was a lender stole his loan and cheated him out of his commission. |
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jroseth
41 Posts |
Posted - 03/30/2008 : 4:21:35 PM
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Glad you think this is funny guys, but I have a real loan, for a real borrower that needs attention.
Thanks |
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mortgagemessiah
7907 Posts |
Posted - 03/30/2008 : 4:25:26 PM
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| Jeremy it's not you, it's Sean's response that they're commenting on. |
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mgraham224
972 Posts |
Posted - 03/30/2008 : 6:59:02 PM
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Most people that would be able to say "I'm the lender and will fund this with my own money" are not going to be on a forum like this.
It's so common to see people convinced that they need to deal directly with "the money" when, in fact, this often times makes the deal more costly or difficult. You don't go directly to the Nike Store to buy Nikes right? You go to Nordstrom rack when they're 60% off.
Anyway, sounds like your issue is not having too many cooks in the kitchen, but rather the fact that you haven't gotten in touch with a good "head chef." By the virtue of that person's involvement you'll usually eliminate a number of cooks anyway.
I'm absolutely a broker. In one way, shape, or form, so are 99% of everyone else you will ever talk to about a commercial loan. There could be 50 brokers involved, but all you care about is finding one person that can accomplish 2 things: get the deal done and with satisfactory terms to all parties involved. Simple. End of story.
1.6m can sometimes be accepted (exception basis) on the single best (but also most difficult to get done) apartment construction loan in existence. It's a 35 year fixed around 6%. Lots of bells and whistles, restrictions, and about a 6 month close time.
If you want, I'll even refer you directly to a correspondent banker or two who does them. I don't have the time to help co-broker this one, but I make the same money anyway. That's the other thing: it's hard to find someone that won't BS you as far as what the fees are and who is getting paid what, under and over tables. I don't charge anything for referring out biz, but the banker will certainly have a monetary consideration for me built into his quote. Hmmm, now you see why some people are so "nice" when it comes to commercial.
But seriously, if you want straight talk/ no BS about the commercial game, feel free to call me or Steve Dibert. I'm sure either of us would be happy to give you our five minute Q and A. |
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neversaynever
1022 Posts |
Posted - 03/30/2008 : 7:05:12 PM
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| jeez settle down, at lest I got you a free bump. No more lines for you after dinner. |
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velecico
3255 Posts |
Posted - 03/30/2008 : 7:32:16 PM
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quote:
Originally posted by ppulatie
quote:
Originally posted by seanwright1
I can slam this shut for you. Email me the deal and kick back. Don't stress anymore. I'll take it from here and before it you will have a commission check to celebrate with. The commission breakdown will be hammered out at closing.
quote:
Originally posted by jroseth
How hard is it for commercial lenders to actually tell the truth, that they are actually a lender, and not brokering the loan 3 ways to Sunday. And why is it impossible to get a 77% LTV 80% LTC construction to perm loan done a 17 unit apartment building!!! Until you lenders convince me that everyone is going to start living in tents, then with the residential foreclosures the market rate apartment buildings is what should be easy to do. If any of you lenders have the guts to look me in the eye and tell me you are the lender with the money, and you want to look at a 77% LTV 80% LTC with the buyer putting up 8% of his own money, and the difference being his developer and construction fee then email me. Also the borrower happens to have 25 years development experience, a 790+ credit score, and about 1.2M net worth, and about 400K liquid. I am only looking for a 1.6M loan!!!!
Haha....the commission breakdown will be hammered out at closing. No guarantees until then?
Now we know how to make 1m per year in this environment.
thats too funny , how old are you ? |
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FLMike
496 Posts |
Posted - 04/03/2008 : 8:59:31 PM
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Sean reminds me of Rock Hudson and what he told the boys he was hitting on back in his day... bend over and take it like a man.
quote:
Originally posted by seanwright1
I can slam this shut for you. Email me the deal and kick back. Don't stress anymore. I'll take it from here and before it you will have a commission check to celebrate with. The commission breakdown will be hammered out at closing.
quote:
Originally posted by ppulatie
Haha....the commission breakdown will be hammered out at closing. No guarantees until then?
Now we know how to make 1m per year in this environment.
quote:
Originally posted by philinpdx
"the commission breakdown will be hammered out at closing"? You're joking right? lol
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ski2313
723 Posts |
Posted - 04/03/2008 : 9:55:00 PM
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This is a free bump, but the next one will cost you.
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ccbank
1215 Posts |
Posted - 04/04/2008 : 11:27:54 AM
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Ok, here I am, a BANK. I'll tell it straight to your face!
"How hard is it for commercial lenders to actually tell the truth, that they are actually a lender, and not brokering the loan 3 ways to Sunday."
I am not speaking for the charlatans but on behalf of actual honest lenders on BO. If you knew what you're doing and did some actual research on banker's programs you wouldn't need to ask such a moronic question.
"And why is it impossible to get a 77% LTV 80% LTC construction to perm loan done a 17 unit apartment building!!!"
It's not impossilble. If you knew what you are doing and did some research on real estate economics/finance, you'd have a basic understanding on how bankers determine their guidelines and not ask such a moronic question.
"Until you lenders convince me that everyone is going to start living in tents, then with the residential foreclosures the market rate apartment buildings is what should be easy to do"
Why should we! It is you that should convince bankers to consider the loan you're pushing. |
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scottanthony
2993 Posts |
Posted - 04/04/2008 : 11:47:38 AM
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[quote]Originally posted by seanwright1
The commission breakdown will be hammered out at closing.
[quote]
Uh uh my friend. That needs to be hammered out prior to passing the customer off and in writing.... |
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ccbank
1215 Posts |
Posted - 04/04/2008 : 12:18:14 PM
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Looks like I made someone mad.
You received the following message from: jroseth (jroseth@hotmail.com)
See the latest Topics at: http://active.brokeroutpost.com
-----
"hey ******* I have been a mortgage banker, & developer for 10 years, why are there so many *******s charging DD fees, and never closing a single loan. Let me guess your one of them. I have done my homework on this file, down to every little detail, and yes it will close. I am just sick of pricks lying!!!!!!!!!!!!!!!"
Well dumbass, why don't you do your research first like with the hotel development project you posted back in March. Find out first which bankers will do the deal without DD fees before submitting the packet cause there are many out there. I personally know 5 banks in my area that will do a construction and take out loan on multifamily properties without DD fees nationwide. Those "lenders" that ask for DD Fees pocket them without even knowing if they can do the deal.
Also, we don't ask for any fees whatsoever. It is absolutely free to get prequaled with us. We will only ask for the appraisal and environmental report done only if we are confident the loan is doable which the borrower pays COD to the agency not us. If we can't do the deal then there is no cost to the borrower.
I get soo frustrated when someone blames the bankers for brokers not able to get a loan done when bankers have been around for over 20years in the commercial industry. Another word of advice, your best bet to get a deal done is to work with bankers that have a history with your particular scenario, especially privately owned banks that use their own funds such as ours. Unfortunately, we wont consider your deal but I know for a fact 5 banks that will. |
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EMScommercial
4749 Posts |
Posted - 04/04/2008 : 12:31:53 PM
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I feel your pain! Seriously... even those of us who specialize in commercial loans get spun around from commercial lenders lately....
Steve has some points that I couldn't say any better.....
I would add that the closing percentage of commercial vs. residential is MUCH different. The rewards can be greater, but there are no 'slam dunks' in commercial.
There are many commercial lenders..... each with their own niches and ways of doing things.... there is no standard governmental way of doing things in the 'commercial world' as there is with residential.....
This is why alot of brokers who are unfamiliar with commercial lending either shy away from taking on a client or they take on the client and don't handle the situation correctly.... Our commercial division has grown exponentially by providing excellent service and avenues of financing that take years of experience to obtain....
We handle all the leg work with the lender... putting the files together and getting them off to various lenders.... ordering appraisals.... etc..... don't worry that you don't know what you are doing with commercial - much different world than residential!.... let us work on your deals...
Co-brokering with my company - who likes the challenges of brokering commercial loans - is a good way to keep the client happy and your bottom line happy...
Eclipse Mortgage Services is the proverbial 'head of the snake'... the end of that broker chain.... next step - the lending source....
** We issue a mutual NCND to protect both sides!! **
Not to say others can't help you.... but I will say that not many have the network of lending sources that we do....
Our network of over 325 commercial funding sources which we are direct brokers for (lenders, banks, private money, hedge funds, insurance companies, etc.) - NATIONWIDE ... and Beyond!!! - could be just what you need for your commercial deal(s).....
Alot of our lending sources will not talk to the typical broker off of the street.... our relationships are hard earned....
We can handle your scenario (or any of your coworkers/friends/business associates/relatives/etc...)..... We have under our belt everything from apartment buildings to restaurants to rv parks to auto garages to acquisition and development of residential, retail and office products to casino financing to nascar team financing to from casino boat financing to medical offices.... etc. etc. etc.
The staff of highly trained and motivated of account managers will be your direct contact through out the process….. they will build the file and get it ready for the selected lending source’s underwriter to quickly process through their system….. this saves a lot of time and helps to ensure success….
We let no moss grow under our loans!
Please contact me (us) asap so we can get this taken care of! Just a note... if you call and I am not available at that time to talk, any one of my highly trained account managers can help you as well.
Remember... We only get paid when the thing funds!
Thank you.....
Hyperlink to our page for submissions - very straight forward and simple - http://www.eclipsemortgageservices.com/body_contactme.php - we will instantaneously receive word of you submission and one of our account managers will be assigned and within one business day, you will be contacted and we can start the process!
Check out our BASIC RATE/TERM sheet to get an idea if your scenario is 'in the ball park' and then contact us to start the ball rolling to get specific numbers for your loan! http://www.EclipseMortgageServices.com/aaaaaEMS_ratesheet.pdf |
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scottanthony
2993 Posts |
Posted - 04/04/2008 : 12:52:04 PM
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Apartment buildings are fabulous investments right now! However, construction, especially commercial, is always a highly risky venture even for seasoned developers. I've got a friend who owns a commercial sheetmetal co who does huge projects all over the Seattle area. You would be amazed how quickly cost overruns can come and how much they can be.
CCbank is totally correct. It is YOUR due diligence failure to not know who you are dealing with, the obstacles you're facing, and how to deal with them. The last comm loan I did I worked directly with the bank. Easy as can be but they're not all that way.
DD fees CAN be mandatory for certain scenarios. I would only suggest paying them on a loan of this size once a LC has been signed.
Frankly, I can't understand why this guy is even going to you in the first place. Whoever is holding his $400k should be giving him a slam dunk offer and you should be competing against that. |
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Xpatriot
333 Posts |
Posted - 04/04/2008 : 1:59:38 PM
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quote:
Originally posted by mortgagemessiah
It is the wild west. I always recommend to people coming over from the residential side to co-broker with an experienced commercial broker for your first 4 or 5 deals so you can learn. The most common mistake that newbies make is they assume it's regulated and the lender is automatically going to pay them. They assume that because someone claims to be "direct lender" or "wholesale commercial lender" they are. There is no such thing in commercial lending. The only direct lenders are banks and hedge funds. Most "direct lenders" are brokers in disguise. If you want to get get paid make sure you have fee agreement signed by you and the client before you shop the deal. If you don't, the source could steal your client and you don't get paid. It's part of the industry that you really need to know what you are doing. Commercial Lending is the Major Leagues of lending compared to residential. Also, beware the guys who claim your deal is slam dunk with out seeing the entire file. A good commercial broker or lending source will want to see an entire file before saying the file is doable.
op should take note of this advise. |
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