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timeshareguy
1 Posts |
 Posted - 07/03/2009 : 1:37:29 PM
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| Looking for legitimate lender to fund Super eco green, solar,wind and geothermal timeshare resort project in Orlando Fl. contact me at timeshare99@aol.com ,dont waste your time or mine with a scam company as I do full research on you. |
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coopercash
2874 Posts |
Posted - 07/04/2009 : 06:08:59 AM
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Bruce, since this is your first posting on B/O I would like to welcome you to the # Industry Forum for mortgage professionals.
One of our investor groups is taking a somewhat positive look at an interval-ownership/fractional ownership resort opportunity in Branson, MO. In the present market conditions I would ordinarily have "trashed" it but for four key mitigating factors: 1: Exceptional developer experience and financial strength; 2: A very strong Feasibility Study provided by HVS; 3: One of the best interval-ownership sales/marketing names in the industry who also have established an on-site presence; 4: The Developer is able to contribute 40% to project costs.
So, what "Exceptional mitigating factors" can your project demonstrate. Let's face it, the Orlando real estate masrket has been pretty much decimated over the past 2-years and I hope that YOU have done some basic research of vacation ownership trends and the forecasts for the next 24-months. Not looking good is it?
While your concerns about lender integrity are noted, I suggest you pay equal attention to the "integrity" of your project and making sure that the fundamentals make sense BEFORE you start seeking out lenders.
I also need to make you aware of that fact that conventional Bank lenders are completely out of the question at this time which means you will be dealing with private commercial investor groups a very small number of which MAY be open to considering your project.
You and your client also need to be aware that these lenders are NOT going to invest a penny of their money with regard to conducting project and construction analysis, due diligence, MAI Appraisal, and a complete review of the operating budget and sales projections.
Assuming a preliminary review of the project leads to an initial conference call with your client both parties will exchange information and the lender will provide an outline of their procedures, terms, and loan structure.
If that discussion goes well and leads to the lender issuing a preliminary LOI at that point the client will be required to make a commitment to the lender which will include the wiring of a fairly significant sum (possibly 0.15% of loan amount) to address all of the lender's costs and fees.
Depending on the lender, some will insist that those fees are paid directly to them and others may issue a third-party fee disbursement analysis.
DOES THE PAYMENT OF THOSE FEES GUARANTEE THAT THE LENDER WILL FUND THE LOAN? ABSOLUTELY NOT! Only the results of the lender's very detailed project analysis will determine one of three outcomes: 1: Everything is great and proceed to the issue of a Letter of Commitment; 2: Things look good but due diligence has revealed a situation which requires some modification of the loan terms originally advised and/or more cash-to-table from the client; 3: Due diligence and discovery reveals some fundamental issues that cannot be mitigated and the lender advises "NO WAY, NO HOW".
Here's the problem, which you alluded to.... Many "lenders" are not in fact lenders but are conduit channels for private funds which are ultimately managed by a Portfolio Manager and an underwriting team. Much as the "lender" WANTS the deal to be approved, the decision is basically out of their hands. Other lenders may have an appetite to participate in a part of the funding, say 20%, 30% or more depending on their risk-exposure ratios and availability of funds at the time and will syndicate the balance to one or more other investment sources. Some lenders may be in a position to fund the entire project.
Regardless of which category the investor is "in" there is a phenomena known as "Churn and Burn". MEANING? A part of the lenders business model is that discovery/due diligence fees are padded in order to provide support for their day-to-day corporate overhead costs. This is manifested by their willingness to take on a volume of opportunities regardless of their true merit and viability just to receive a five figure discovery fee.
There are no accepted standards as to how many deals a lender "intakes" on an annual basis versus how many they actually fund. Neither are private commercial lenders required to disclose such ratios and many, even the totally legitimate ones, will NOT provide such information.
Many of us who have been around the "biz" for a number of years know very well who the "Churn and Burn" outfits are and we steer ourselves well clear of those sources.
The problem then is that "we" are often faced with a client who has been previously "burned" not just once but maybe 2 or 3 times and that presents an enormous challenge which typically results in an opportunity that cannot be progressed until such time as the client "heals their wounds" and can return to the table in an appropriate manner.
Our investor groups are diverse and include a couple who MIGHT be prepared to not only provide 60% debt financing but possibly as much as 10% by way of equity participation.
We are currently taking a look at a radically different funding source who claims to offer a program that can finance UP TO 100% of project cost in return for 50% ownership in the project. However, in this particular case the client MUST have owned the land for at least four years and have significant equity in that land.
You are more than welcome to email me a BRIEF and CONCISE Executive Summary of the Project (max 8-pages) and I will give you an honest opinion and maybe even an expression of interest in working the deal.
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davidfr
2225 Posts |
Posted - 07/04/2009 : 06:55:33 AM
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These 2 posts epitomize Broker outpost, and why I believe it is a wonderful site and resource. Post #1 is one end of the BO spectrum, and post #2 is the other end. In between is a whole lot of great information, and spewn BS.
Richard, you are the man. |
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