Commercial Loans Blog

Commercial Loans and One-Point Bridge Loans

Posted by George Blackburne on Mon, Mar 30, 2015

bridgeloansI'm sure that you already know a great deal about commercial bridge loans, but I hope to add even more to that knowledge today.  If you are a commercial broker - a commercial real estate broker or salesman - today's training article will be particularly helpful.  By the way, it is the custom and practice in the industry to call commercial real estate salesmen "commercial brokers", even if these salesmen are not technically licensed as real estate brokers.

A bridge loan is a fast commercial real estate loan used to bridge a short period in time.  Years ago bridge loans were also known as swing loans, although this term has fallen out of common usage.  Typically bridge loans have a term of just 6 months or one year, but many bridge loans also provide for a 6-month or a one-year extension upon the payment of an additional 1/2 point to 2-point extension fee.

 

Study-1

 

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Bridge loans are used to bridge some short period of time.  Here are some examples:

  1. Suppose a commercial property investor has listed his office building for sale, but the building hasn't sold yet.  In the meantime, the investor suddenly needs dough, perhaps to inject cash into his business.  A fast bridge loan solves his problem.

  2. One of the unfortunate features about conventional commercial real estate loans is that they have balloon payments.  A conventional commercial real estate loan is a loan that is NOT guaranteed by the Federal government (SBA loans, USDA B&I loans, and FHA/HUD apartment loans are all guaranteed by the Federal government) or that is NOT guaranteed by a government sponsored entity (GSE's include Fannie Mae, Freddie Mac, and Ginnie Mac).  Since most conventional commercial real estate loans have balloon payments, what often happens right before the property is due to be refinanced?  Too often an important tenant moves out of the building!  Suddenly the property won't qualify for a bank refinance.  A bridge loan pays off the ballooning loan and gives the property owner six months to one year to find a new tenant.

  3. Suppose a commercial property is well located, but it needs to be renovated, beautified, and re-leased at a higher rental rate.  The commercial property owner doesn't want to place a new fixed-rate permanent loan on the property yet because currently the rents are low.  For example, based on current rents, the property might only carry a $900,000 new permanent loan.  However, if the owner renovates the property and makes it look more modern and pretty, he might be able to rent it out for a much higher rental rate and qualify for a $1.5 million new permanent loan.  Who remembers the definition of a permanent loan?  A permanent loan is a first mortgage loan, with a term of at least five years, and which has some amortization (usually based on a 25-year schedule).

  4. Bridge loans are often used to cover the cost of tenant improvements - those special improvements to the space required by a new tenant, like dividing walls, new paint, new carpet, bathrooms, etc.  Once again, the owner can't put a new permanent loan on the property yet because the space isn't yet occupied and because most new fixed-rate permanent loans today have a very painful prepayment penalty.

UFC

 

Bridge loans are designed are designed to bridge a gap in time but NOT a gap in the capital stack.  A lot of new commercial loan brokers mistakingly believe that if their client is trying to buy a commercial building for $1 million, the bank is only willing to make a $700,000 new permanent loan, and the buyer has just $150,000 (15% of the purchase price) to put down, that they need a bridge loan to bridge the $150,000 shortfall (15% of the purchase price).  No-no-no.  A bridge loan does NOT bridge a gap in the capital stack.  In most cases, only additional equity will bridge that gap.  Think of equity as the lender's protective cushion.  Someone else gets to lose a ton of dough (the entire downpayment) before the bank loses its first penny.

But this brings up an interesting question.  Is it possible to obtain a second mortgage bridge loan?  In the old days, there were lots of hard money lenders making second mortgages on commercial properties.  Most of these guys were wiped out in the commercial real estate massacre of 1986 to 1991, when commercial real estate fell by 45%.  The commercial second mortgage industry never really came back after that.  Most commercial bridge loans these days are therefore first mortgages.

Blackburne & Sons has a superb commercial bridge loan program.  We charge only one point, and our bridge loans have no prepayment penalty.  I am aware of no other private money bridge lender in the entire country who charges just one point.

 

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So you're a guy, you're single, and Jennifer Anniston walks up to you and says, "I'm feeling lonely tonight.  Want to go get a coffee with me?"  Best offer you'll ever get in your lifetime?  Nope.  The following offer is even better.  Ha-ha!  

 

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I have a buddy, Les Agisim of TCRM Financial, who describes A-quality commercial loan requests as best rate deals.  If you have a best rate commercial deal sitting on your desk, a deal that is far too good for a private money lender like Blackburne & Sons, and this deal needs to get done by a life company, a conduit, or a bank, I urge you to submit it through C-Loans.com.

 

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Don't forget that you can now close business loans - rather than just commercial REAL ESTATE loans - through C-Loans.

 

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Are you wise?  If so, you will submit a copy of every small (less than $2 million) commercial real estate loan that you work on to Blackburne & Sons.  At NO COST, we will issue your borrower a Loan Approval Letter.  Go ahead and also submit your deal to a half-dozen banks in search of a best rate quote.  Banks issue great quotes; but they turn down a ton of great commercial loans for the goofiest of reasons.  If the bank leaves you standing at the altar looking stupid, you will be VERY grateful to be able to fall back on Blackburne & Sons.

 

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The next three years promises to be the most profitable time in the history of commercial real estate finance for commercial loan brokers.  This assumes that you actually know the business.

 

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If you don't lay awake at night dreaming of the day when you will enjoy $40,000 per month in loan servicing income, then you are missing the whole point of being in the mortgage business.  It's the loan servicing income, silly!  Last month Blackburne & Sons closed $4.5 million in loans.  This means that starting next month, we will earn an extra $7,500 per month in passive income for the next five years.  Helloooo?  Anyone catch the word, "extra"?  It's the servicing income, silly!

 

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Topics: bridge loans

Commercial Loans and How To Spot a No-Go Construction Loan

Posted by George Blackburne on Tue, Mar 17, 2015

constructionloanequitySeventy-five percent of the time when a developer calls a commercial mortgage broker to help him place a commercial construction loan - that deal is NOT do-able.  Why?  Because the developer doesn't have enough equity in the deal.  He doesn't have enough skin in the game.

"Gee, George, how can you make such a blanket statement like this?  How could you possibly know that the developer doesn't have enough equity? Are you the Great Oracle of the Indiana Cornfields?"

Answer:  Banks love-love-love to make commercial construction loans, assuming the world needs what the developer is trying to build - like more office space in San Francisco.  Banks love to make construction loans because they are short term loans and because they very profitable.  Why are construction loans so profitable?  Because the bank immediately earns one to two points up-front on the entire loan amount, even though the developer's first draw might only be for a few thousand dollars.

 

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Therefore any developer with half a brain calls a local bank long before he calls a mortgage broker.  And if the banks wants to make construction loans, yet it turns the deal down anyway, there has to be a reason.  Ninety percent of the time that reason will be because the developer doesn't have enough of his own - or his partners' - money in the deal.  Rather than try to raise more equity, he tries a mortgage broker.

 

Kohls

 

Therefore, if you are a mortgage broker, the first thing you have to do, before you waste a lot of time, is to determine if the developer has enough equity in the deal.  But what counts towards the developer's equity?  It is the sum of the following:

  1. The developer's cash down payment on the purchase of the land.

  2. It does NOT include the principal and interest payments on the land loan used to buy the land.  Payments on a land loan don't add value to the project.  In theory, a developer is supposed to pay cash for the land.

  3. But definitely include any appreciation in the value of the land since the buyer purchased it, either because of time (maybe the developer wisely bought the property in 2009 at the bottom of the market) or because of the happening of some external event, such as the completion of a freeway off-ramp on the subject strip or the opening of a nearby Wal-Mart.

  4. Any increase in land value due to a zoning change or use change.

  5. Any increase in value of the land due to assemblage.  Sometimes an assembled parcel is worth far more than the sum of the purchase prices of the various parcels.  Imagine a developer who is able to buy six ugly, old rental houses along a busy strip and combine them into a site large enough for a modern new strip center (called a mini-mall in Southern California).

  6. Any monies already expended for architect's fees.

  7. Any monies already expended for engineering fees.

  8. Any monies already expended for legal fees, especially when used to get the zoning or use changed.

So how much equity is enough?  Generally a developer has to cover 20% of the total cost of a project.

 

KillerCow

 

Don't forget, when you are computing the Total Project Cost, to include such Soft Costs as the Interest Reserve, any loan points, appraisal fees, toxic report fees. structural engineering reports, plan check fees, and utility hook-up fees.  Any of these fees that are prepaid count towards the developer's equity in the project.

Remember, the developer, or his equity partners, must contribute at least 20% of the Total Project Cost.  If the property is a business property, such as a hotel, restaurant, or marina, the developer may have to contribute 30% to 40% of the Total Project Cost.

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Got some loan agents working for you or some buddies who are also in commercial brokerage or commercial mortgage brokerage?  It would be terrific if you would please forward this training article to them.  And if someone was indeed kind enough to forward this article to you, you can sign up to receive these free training articles in commercial real estate finance by going to our blog and typing in your email address below my rump-ugly picture.  :-)

 

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When I teach commercial real estate finance, I try hard to use simple terms (baby language), lots of repetition, and tons of examples.  Although I ended up graduating from law school with honors and passing the California Bar on my first attempt. I also remember driving my law school instructors absolutely crazy with questions.  "I'm sorry, Judge, but I don't get it."  So my training courses are intentionally aimed at folks of average intelligence (like me).  I truly believe the best thing you can do for yourself in this business is to take my classic 9-hour training course.  Countless successful brokers have sought me out at trade shows to shake my hand and thank me for this course.  Heck, I expected to be dead by now (heart problems), so I created this program with great care to train my two wonderful Eagle Scout sons after my death.  God bless modern medicine!  Ha-ha!

 

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If you put two plastic bottles into a recycling container you get to take the lovely Jennifer Aniston out to dinner.  (If you haven't seen the Jennifer Aniston movie, We're the Millers, you are missing a true treat.)  The recycling bottles deal is the only deal on Earth better than the following.

 

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C-Loans is now placing business loans, rather than simply commercial real estate loans.

 

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How would you like to be able to turn on a flow of commercial loan applications like turning on a faucet?  Hey guys, do you think that I really get to live near my daughter's $45,000 per year high school because I am so handsome and charming?  Helloooo?  Look at the picture.  It's because I am a master marketer, and everything I do is repeatable.  My son, George IV, has taken my marketing course, and he is emerging as even more effective marketer than me.

 

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Do you sometimes look at my marketing courses and say, "Gee, George, I don't doubt that you can teach, but I don't have any dough."  I'll give you the training course of your choice if you convince a bank to join C-Loans.  This is no big deal, guys.  Just send them the link to this sales page.  Duh.  Bankers are getting pressure today from their bosses to make commercial loans and SBA loans.

 

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I don't get you guys.  You are so focussed on saving the borrower 1/2% on the interest rate that you forget that the borrower's business actually needs money.  If they had money right now, they could triple it in 18 months.  And you're risking everything to try to save them 0.50%?  Really?  Are you retarded?  Blackburne & Sons will issue your client a Loan Approval Letter for free!  We're thrilled to do this because we know that 60% of the time your best bank will leave your borrower standing at the altar looking stupid.  Your borrower needs money!

 

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Topics: construction loan

Commercial Loans and Underwriting Commercial Construction Loans

Posted by George Blackburne on Sun, Mar 15, 2015

OfficeconstructionA handful of well-trained commercial mortgage brokers are about to make a fortune originating commercial construction loans over the next few years.  There are three reasons why this is true.

  1. There has been almost no new commercial construction in the U.S. for the past eight years.  The U.S. needs a few more commercial buildings in certain areas - like office space in San Francisco and multi-use industrial space in many of the nation's gateway cities (jokingly described as cities with football teams).

  2. Commercial construction loans are large, so the mortgage broker's fee will be large.  One point on a $4 million commercial construction loan is a handsome $40,000.

  3. Banks love to make commercial construction loans because they are very profitable.  The bank earns one point ($40,000) to two points ($80,000) upfront on the entire loan amount (say, $4 million), even though the first draw or disbursement to pay for the demolition and grading might only be for $37,000.  Construction loans are also short-term loans.  Banks greatly prefer short-term loans.

Commercial construction loans can also be an enormous waste of time for mortgage brokers, if you don't know how to quickly separate the wheat from the chaff.  An untrained commercial loan broker could easily originate two dozen large commercial construction loans and never close a deal.

The reason why is because the vast majority of developers don't have enough equity or skin in the game.  They want the bank to take all of the risk.  The problem for beginning and intermediate level commercial mortgage brokers is that they can spend dozens of hours packaging a commercial construction loan, when the deal never had a chance in heck of closing from the start because the deal lacked enough equity.  Over the several blog articles, I intend to teach you how to quickly determine if a commercial construction loan has enough equity.

 

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Target

 

If a commercial construction loan does close, it is almost always made by a garden-variety commercial bank.  You'll recall that a commercial bank - as opposed to an investment bank or a merchant bank - is just a bank that accepts deposits and makes business loans.  The word "commercial" is just a fancy term for "business".

Construction loans have to be disbursed in stages; otherwise the developer could just skip town with his Barbie doll girlfriend and the bank's $4 million.  The bank will therefore insist on making frequent progress inspections to ensure that building is being constructed according to the plans and specifications.  Of all of the various types of commercial lenders - life companies, conduits, commercial banks, credit unions, and hard money lenders - commercial banks are the ones best equipped to issue a number of smaller disbursement checks.

Since construction loans need to be disbursed in stages, after frequent progress inspections, it follows that commercial construction loans are made by local banks.  It wouldn't make sense for a Chicago bank to make a $4 million commercial construction loan in Dallas.  You can't keep putting an inspector on a plane to Dallas every ten days.  It's not economically feasible.

 

hit-by-a-bus

Okay, so an $8 million commercial construction loan falls in your lap.  Do you accept the loan brokerage assignment.  Well, let's underwrite the deal.  To underwrite a commercial construction loan, you need to apply a number of tests and ratios.  We will cover each of these tests or ratios in more detail in upcoming blog articles:

  1. Loan-to-Cost Ratio.  Is this deal less than 80% loan-to-cost?  Does the developer have enough skin in the game?  Most deals will fail this test.

  2. Loan-to-Value Ratio.  When completed and leased out (stabilized), will the construction loan be less than 70% to 75% of the property's fair market value?

  3. Debt Service Coverage Ratio.  Will the finished property, when leased out and stabilized, generate enough net operating income to give the takeout lender his required 1.25 debt service coverage ratio?

  4. Debt Yield Ratio.  This ratio is new, and it is different from the debt service coverage ratio.  This ratio is typically only used for commercial loan requests larger than about $5 million to $10 million.  If the borrower defaulted on his first payment and the construction lender immediately foreclosed, will the leased and stabilized property produce a cash-on-cash return to commercial construction lender of at least 8% or higher?

  5. Experience of the developer.  Has the developer built and managed a number of similar buildings almost this large?  Be sure to ask for a curriculum vitae ("CV").

  6. Is the project ready to be financed?  Does the developer have his final working drawings?  Can he show you an architect's rendering?

We will cover each of these subjects in more detail in the coming weeks.  

If you learned something today, would you kindly give me a social media doggie treat, like a Facebook Share, a Linked-In Share, a Twitter Re-Tweet, or a Google-Plus atta-boy?  It's how I can judge whether or not our readers are digging these articles.  Thanks so much!

Got some loan agents working for you or some buddies who are also in commercial brokerage or commercial mortgage brokerage?  It would be terrific if you would please forward this training article to them.  And if someone was indeed kind enough to forward this article to you, you can sign up to receive these free training articles in commercial real estate finance by going to our blog and typing in your email address below my rump-ugly picture.  :-)

Do you need a commercial construction loan right now?  You can submit your application to hundreds of different hungry commercial construction lenders in just four minutes using C-Loans.com.  We recently closed an $18.5 million commercial construction loan on the mixed use project in Wisconsin seen below.  The mortgage broker who used C-Loans.com earned a $92,500 loan fee:

 

mixed_use-2

 

So please click here to enter your commercial construction loan.

 

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Get a free directory of over 2,000 commercial real estate lenders here:

 

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Because an enormous tidal wave of commercial loans are maturing, the next three years are likely to be the most profitable years for commercial mortgage brokers in the history of the industry.  This assumes that you know what you are doing:

 

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We will pay you to recruit lenders for C-Loans, plus give you a free training course of your choice.

 

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Have you delivered a $2.5 million commitment leter - representing a $25,000 fee to you - and had the borrower cancel yet without justification? This happens many times to every experienced commercial mortgage broker. Gotten really mad yet?  Had thoughts of violence?  Don't go to jail.  Get paid instead.

 

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How would you like to have a faucet that you could easily turn on any time you needed more commercial mortgage leads?

 

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C-Loans now offers business loans, as well as commercial real estate loans.

 

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Topics: commercial construction loan

Commercial Loans and Tips on Preparing Pro Forma's

Posted by George Blackburne on Sun, Mar 1, 2015

The commercial loan broker most likely to get paid is the one who gets his client the largest loan.  The commercial broker (commercial realtor) most likely to sell an income property is the one who can show his prospective buyer the highest, honest cap rate.  Therefore this article is very important to you because I am going to show you how to honestly, legitimately, and believably calculate and display the highest possible net operating income.  I could make a good argument that no blog article I will ever write might make you more money than this one, so, as your 8th grade teacher said, right after - BAM! - slapping her yardstick on the desk of the dozing student in front of her, "Pay attention!  This is going to be on the test."  Ha-ha.

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If you are trying to sell a commercial property, you want the buyer's cap rate to appear as high as possible.  You will recall that a cap rate is just the return on his money that a buyer would earn if he paid all cash for an income property.

If you are trying to place a commercial mortgage loan, the limiting factor to the size of your new commercial loan is often the debt service coverage ratio ("DSCR").  You will recall that the debt service coverage ratio is merely the net operating income divided by the annual debt service (principal and interest payments) on the proposed new commercial loan.

DSCR = (Net Operating Income / Debt Service) x 100%

 

HandCutOff

 

Even though the results are better (the DSCR appears higher) if you compute the debt service coverage ratio on a monthly basis, commercial lenders require that you compute the DSCR using annual numbers; i.e., the NOI from the pro forma operating statement and the annual debt service on the proposed new commercial loan.

Debt service coverage ratios are normally expressed out to two digits to the right of the decimal; e.g., 1.27 or 1.42.  Expressing a DSCR of 1.1 would be wrong.  It should be 1.10 or 1.12.  A debt service coverage ratio of 1.00 is what is known as a breakeven cash flow.  Less-than-breakeven cashflows should be expressed as -

0.96  ($112 per month negative)

Notice that I showed just how much or how little the negative cash flow is per month.  This allows a banker to say, "Yeah, well, this buyer is a physician, and he makes $300,000 per year.  He can afford a lousy $112 per month negative cash flow."

Let's get back on track.  We are trying to make the net operating income appear as high as possible on the pro forma operating statement.  You will recall that a pro forma operating statement is merely an operating budget for the upcoming year, with reserves for the eventual replacement of the roof and the HVAC system, along with a reserve to resurface the parking lot and to repair and repaint the exterior.

Okay, here is the good stuff:

  1. You can use the contracted rents that will be in place for the upcoming year (use next year's projected rents), rather than last year's actual rent receipts.  For example, let's suppose that one of your industrial tenants has a $500 per month increase in his lease payments spelled out in his already-executed lease.  You get to use the higher rent.

  2. When preparing your Pro Forma, you use last year's actual expenses, even if next year's expenses are probably going to be higher.  This is the custom and practice in the industry.  Sometimes being forced to use last year's actual operating expenses really hurts you because, for example, last year was unusually cold and your heating bills were extremely high.  Sometimes, however, using last year's actual expenses can help you.  For example, perhaps your water company just announced a dramatic increase in water rates for the coming year.  Remember, the custom and practice in commercial real estate finance (CREF) is to always use next year's projected rents and last year's actual operating expenses.

  3. If some of your units are vacant, use the market rent of any vacant units.  So many brokers forget to do this - especially if there are sixty or more units in the apartment complex, and the borrower hands you this very long rent roll.  A Rent Roll is just a long list containing the units by unit number, the size of each unit, the name of the each tenant, and the amount of the rent.  This allows the appraiser to ask Mr. Jones in Unit 17 whether he is really paying $1,300 per month in rent (rent roll audit).  Rent rolls are used for apartment building and self storage projects.  The equivalent document for office buildings, strip centers, and industrial centers is called a Schedule of Leases.

  4. Don't forget to use the market rent of the manager's unit.  If an owner pays his on-site property manager a salary, that owner has to pay painful employment taxes on this salary.  Therefore, in order to cheat on their taxes, a great many (most?) property owners will give their on-site managers a free apartment, instead of a salary.  The Rent Roll given to you by the owner will therefore often understate the property's true Gross Potential Income (top line of the Pro Forma) by as much as $1,800 per month - the market rent of the manger's unit.  The manager's unit is usually the largest and most desirable unit in the building.  This is huge!  An extra $1,800 per month in income could mean a loan amount that is a whopping $160,000 larger.  Commercial mortgage brokerage is NOT about finding the lender with an interest rate that is a lousy 0.25% lower.  The commercial mortgage broker who closes the deal, gets paid, and kisses the pretty girl is the one who gets his borrower the LARGEST LOAN AMOUNT!!!  It's NOT all about that base - that base.  It's about who gets the borrower the largest loan amount.

  5. If the market rent of a vacant unit is legitimately between $1,150 per month and $1,225 per month, use the larger number.  Duh.  For you commercial loan brokers, the larger your NOI, the higher your DSCR and the larger the commercial loan that you can deliver to your client.  For you commercial brokers (commercial realtors), the higher your NOI, the higher your cap and the more attractive your property appears to a prospective buyer.

 
HotLips
 
 

 

Okay, now a really sophisticated issue.  How do you prepare a Pro Forma Operating Statement when part of the building is leased on an industrial gross basis and part of it is leased on a triple net basis.  An industrial gross lease is one where the landlord pays the real estate taxes and the fire insurance, and the tenant pays the rest - repairs, utilities, etc.

Answer:  You prepare the Pro Forma as if the entire building was leased on an industrial gross basis; i.e., you show in the body of the Pro Forma 100% of the expenses for real estate taxes, fire insurance, management, and reserves.  If the building is younger than 35-years-old, I like to use 2% of Effective Gross Income for the Reserves for Replacement (roof, HVAC, parking lot, exterior walls, etc.).  If the building is older than 35-years-old, you should use 3% of Effective Gross Income for the reserves.

Okay, back to this sophisticated question about preparing a Pro Forma Operating Statement on a building that is leased partially on an industrial gross basis and partially on a triple net basis.  So we will show 100% of the expenses for which the landlord might be responsible; but then we recapture, say, 47% of the real estate taxes and fire insurance as CAM reimbursements from the NNN tenants who occupy 47% of the space.

Totally lost?  Don't worry about it.  This is pretty advanced stuff for a deal that we are actually working on this week in our office.

If you are new to this blog - perhaps because one of my readers kindly re-Tweeted this article or shared it on Facebook - I encourage you to sign up for this free training blog about commercial real estate finance.  Simply find my rump-ugly picture on our actual blog site and register by merely typing in your email address.

If you learned a little today, I cannot tell you how much I appreciate it when you re-Tweet my articles, share them on Facebook, or give me a Linked-In or Google-Plus atta-boy.  Those thumbs-up encourage me to write more.

If you are a commercial mortgage broker, you surely must be calling on all the local banks and credit unions near your office for their turndowns.  Bankers are the single best source of commercial mortgage referrals because the first place a commercial mortgage borrower shops is his own bank.  You picked up his business card.  Why not trade the contents of that single business card for a free directory of 2,000+ commercial lenders?  You certainly don't have to trade me your best banker - your equivalent of a Mickey Mantle or Willie Mays rookie card.  Just trade me your Phil Panera card.  Who?  Exactly.

 

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Last week I told you about how you could win a free copy of any of my training programs - as well as $250 per closing - just for convincing one of your bankers to join C-Loans as a lender.  Don't make it a big deal.  Just send him this link.  Let the story sell itself.  After all, it doesn't cost the banker one penny.  If he is hungry to make commercial loans, he'll sign up.

 

Get Paid To Bring  Us Bankers

 

My private money commercial mortgage company, Blackburne & Sons, is on fire.  We just had our best February in 35 years.  Your borrower needs one of our commercial loans.  Remember, we issue Loan Approval Letters for free.  While you are out there trying to convince some conservative banker to part with a loan, the smarter mortgage broker down the street is rushing the deal to Blackburne & Sons.  He knows that its not all about rate.  The borrower - often a business owner - simply needs the money.  If nothing else, use us as a backstop, while you plead with that nervous banker.  If the borrower runs out of time and/or patience, at least you still make a fee when he falls back on our free Loan Approval Letter.  Since you are going to have to gather the same documents for the bank, and since you can easily email them to us as well, and since our Loan Approval Letters are free, why wouldn't you want a fall-back lender waiting in the wings?  

 

Apply For a Commercial Loan to Blackburne & Sons

 

The next three years are likely to be the most three profitable years in the history of the commercial mortgage business.  (See my earlier blog article about the tidal wave of ballooning commercial mortgage loans coming due.)  Don't you think its finally time to learn this business?  Remember, the same practical and understandable guy who writes this down-to-earth and fun blog will be the same guy teaching the course.

 

Nine-Hour Video Training Course  How to Broker Commercial Loans

 

In June of last year, one our brokers earned a $92,500 fee when he closed an $18.5 million construction loan using C-Loans.com.  What would you do with a $92,500 fee right now?  And remember, C-Loans.com is free!

 

Submit Your Loan to 750 Commercial   Lenders Using C-Loans.com.  It's Free!

 

The reason why you want to get involved in business financing, in addition to commercial real estate finance, is because these business loans close in just 10 to 12 days.  (There is no appraisal, remember?)  Could you use a nice payday in just 10 more days?   Be sure to add "Business Loans" to your fliers, newsletters, and business cards.

 

Business Loans Not Secured By   Real Estate - Unsecured or Secured 

 

Are you a pretty successful commercial loan originator?  You are about to make the single biggest mistake of your life.  It has never been easier to raise private money for mortgage investments than right now.  It's like shooting ducks in a barrel.  The banks are paying less than 1% interest.  You could offer them 10%, and the loan could still be a reasonably prudent investment.  The money in commercial real estate finance is in loan servicing fees.  (Heck, you could simply assign the servicing to a sub-servicing company for a lousy $100 per month and keep the difference!)  I'm doing a $2 million deal this month where my loan servicing fee will be $58,000 per year for collecting 12 payments and forwarding them on to my investors.  Please read that last sentence again.  Helloooo?  You will name your second son after me.

 

Become a Hard Money Lender  Sub-Contract Out Your Servicing  Earn $1,700 Per Month On a Single Loan

 

Have you been cheated out of $15,000 loan fee yet?  It's coming.  Nobody who is active in commercial mortgage brokerage escapes without this calamity happening at least twice a year.  I am NOT talking about the deal closing and the borrower performing a commission-dectomy on you.  In real life, this seldom happens.  I am talking about when you deliver the exact loan commitment you promised to deliver, after months of back-breaking and sometimes brilliant work, and the borrower says, "Gee, I feel really bad, but I have decided not to borrow."

 

Fee Agreement and Fee Collection Course. Just $199.  

Topics: Creating Pro Formas