Commercial Capital Gazette
Commercial Mortgage and Real Estate News
Published By 1st Coastal Commercial Capital Issue #5 April1, 2012
In This Issue

A Little Levity Please

Capital Markets 2012

Operating Expense Ratio

Explaining the Methods of Hard-Money Lenders

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CND
CHURCH FINANCING
AVAILABLE
Fixed Interest Rates:
Interest rates are fixed for the entire term of the loan up to twenty years with no penalty for early prepayment. This represents the most conservative approach by eliminating all interest rate risk.
Special Amortization Schedules:
Payments can be graduated to meet cash flow requirements; this factor alone is very important in the budgeting process. Payments can also be structured around a capital fund drive.
Additional financing:
The ability to do additional borrowing without refinancing will provide much needed protection to your church from interest rate increases and refinancing costs. This feature is very significant as the church needs to phase a Master Plan.

Experience and Expertise:


APPLY HERE
Or Call
1-888-316-1787

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WE WANT YOUR BUSINESS!!!

Make no mistake about it, the commercial lending business is tough. When you are looking for a commercial loan for your client it would serve you well to keep in consideration that each loan has it's own DNA. No two loans are a like and no two lenders are a same. What we have created here at 1st Coastal Commercial Capital is an unlike any other funding source available in the market today. Although are concept is simple, it is not easily duplicated. We have amassed a network of over 300 branches 600+ funding sources and a team of experts that far surpass any other company in the industry today. And why is that important? It allows us the ability to fund any loan imaginable, get you the best rate and terms available and close in the shortest possible time. We fund all asset classes from marinas, hotels, bars, gas stations, apartments complexes franchises, factories and anything in between. Our minimum loan amount is $250,000. However, we can make exceptions if necessary and due to our relationship with hedge funds and other major funding sources as well as hard money and bridge lenders, if the numbers make sense there really is no maximum. GET STARTED NOW!
Visit Our Quick Qualifier Click Here Now!

Frequent Deals We're Seeing...
Greetings!

One of the best loan types we're experiencing are principal reduction deals. These are typically performing borrowers that have been offered a principal reduction from their bank to relieve the bank balance sheet of the property type and many times help increase the banks capital reserves. They're happening all over the country!

What we find interesting is the banks typically provide the borrower with a limited window of time to take advantage of the depreciated pay off (DPO). The usual time frame is 14 to 30 days. Definitely not enough time to acquire a conventional loan. Curiously it seems other banks don't want to finance directly behind a DPO either. Maybe as a courtesy to other depositories, not really sure of the logic or lack thereof.

WE HAVE MONEY TO LEND!

If you have a project you'd like us to review...let's get started! We're here to help you close more deals and in record time!

Canton Pic
10 Unit Office Complex- Canton, OH
NOTE BALANCE: $950,000.00

Original bank was taken over by the FDIC. Borrower negotiated with the FDIC and received a DPO of $415,000.00- $535,000 off original Note! CRF closed within 6 days
Aurora Self Storage Exterior
184 Unit Climate Controlled Self Storage Aurora, IL
NOTE BALANCE: $1,725,000

Borrowers bank negotiated a DPO of $590,000- $1,1350,000 reduction of original Note! Borrower was provided a 10 day window to accept and act on the DPO. CRF made it happen!
We sincerely want to see each and every one of you be successful and we are committed to helping you achieve that success! If you have a project you'd like to discuss- Call US!!!!
888-316-1787
Contact Don Gurney 3201 Mountain Rd, Suite116, Pasadena Md, 21122 Phone: 888 316-1787 410-255-7437 dg1stccc@aol.com www.1stcoastal.com




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WRC
MEZZANINE FINANCING

PREFERRED EQUITY

JOINT VENTURE
_______________

GAP EQUITY

Private Equity

On a case by case basis

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To Our Clients
THE BEST OF BOTH WORLDS!
Globe - flags from countries and nations around the earthGlobe - flags from countries and nations around the earth
1st Coastal Commercial Capital's approach to commercial funding is uniquely different from all other funding sources available today. Our obligation is to find you the best terms and pricing that the market has to offer for your commercial capital requirements.

When we refer to "both worlds" we are referring to direct lending, brokering and anything in between. We are lenders with our own funds and have correspondence relationships with the most aggressive funding sources in the industry. At any given time we have access to over 500 lending sources and since we are not limited by our affiliation with any one bank, we are able to present your capital requirements to a broad spectrum of potential funding sources.

Apply Now!

Famous Chinese Proverb
He who asks a question is a fool for a minute; he who does not remains a fool forever.

 

A Little Levity Please
A young lawyer was defending a wealthy businessman in a complicated lawsuit. Unfortunately, the evidence was against his client, and he feared the worst. So the lawyer asked the senior partner of the law firm if it would be appropriate to send the judge a box of Havana cigars.

The partner was horrified. "The judge is an honorable man," the partner exclaimed. "If you do that, I can guarantee you will lose the case!"

Weeks later the judge ruled in favor of the lawyer's client. The partner took him to lunch to congratulate him. "Aren't you glad you didn't send those cigars to the judge?", the partner asked.

"But I did send them," replied the lawyer. "I just enclosed the plaintiff's lawyer's business card!"

Capital Markets 2012
What issues are facing the lending market this year?
(Reprinted from CCIM » CIRE Magazine » CIRE Archives » Mar.Apr.12)

Don Gurney

Many economic issues converged late last year to slow commercial real estate's recovery. In addition, the uncertainty of vintage commercial mortgage-backed securities loans coming due this year and for the next several years has buyers, sellers, and investors speculating on the continuing availability of capital. To get a clearer picture of the capital markets' activity this year, Commercial Investment Real Estate asked an economist and two mortgage banking executives to weigh in on the subject. READ MORE
Operating Expense Ratio II -
What Ratio's Will Commercial Lenders Believe?

george blackburne photo By George Blackburne

In our first lesson on the operating expense ratio we said that borrowers and brokers had an incentive to understate their commercial property's operating expenses. The lower the operating expenses, the larger the commercial loan for which the borrower can qualify.

Commercial lenders therefore use the Operating Expense Ratio to see how much the borrower or broker is fudging his operating expenses. Below are some reasonable operating expense ratios that commercial real estate lenders will believe:

  1. Multifamily: 30% to 45%
  2. Triple-Net Leased Buildings: 7% (Management and Replacement Reserves)
  3. Self Storage: 25%
  4. Mobile Home Parks: 40%
  5. Hospitality (Hotels/Motels): 50% to 65%
  6. Assisted Living: 85% (That's NOT a typo.)

The owner or broker would be foolish to try to get away with operating expenses that are too much lower than those shown above; otherwise, your commercial lender may apply some punitive assumption (say, a 45% operating expense ratio on a multifamily deal) that will just kill your deal.

Remember, pigs get pleasantly plump. Hogs get slaughtered.

Explaining the Methods of Hard-Money Lenders By Dawn Wotapka

As banks continue tightening their purse strings, hard-money lenders are pouncing on the opportunity to lend to shunned borrowers.

It’s not the major financial firms you’d expect. As we write today, more of these lenders are everyday investors tapping their savings accounts to make a profit doling out mortgages.

So how does it work? Read More


HAVING PROBLEMS GETTING MONEY? For a Fast Closing
CLICK HERE

 
Getting Your Deal to the Top of the Stack



In the commercial real estate finance world, the most valuable assets are time and relationships. Capital providers are swamped with financing requests, committee meetings and getting deals done. Like all of us trying to allocate our time wisely, Lenders and Equity Providers have to make a determination of which transactions they want to spend time reviewing.

The benefit to a Client of engaging a well-respected Broker on an Exclusive Basis is essential to the process of soliciting and closing a favorable financing. READ MORE

3 HOT New Products-1 Great Source
1st Coastal Commercial Capital!

1. Ground Up Construction for HOTELS?-YES We Can!!!!
This has been one of the toughest forms of financing to find and THIS WEEK we are rolling it out. Ground up construction on flagged hotels NATIONWIDE up to $5 million in loan amount! Quick hits: As little as 15% down, need strong experience and a feasibility study will be required prior to full underwriting. This is an SBA 7A loan but we get them closed!

2. Small Balance Bridge Loan NOW OPEN for Business! This is OUR OWN private money. We decide to do the deal and we go right to commitment. Closings in 3 weeks or less! (Shortest has been 8 days to closing).Quick Hits: We will consider ANY property type or deal with a good story. If we can believe the exit strategy, and the loan to value is 60% or less (65% on exception)-we will consider it. We have done vacant warehouses in Michigan, a cell phone tower, a note discount deal at 100% of the discount. We focus on loan amounts under $1 million and have minimal upfront due diligence. Simply put, this is the BEST small balance bridge loan on the planet! If you have a deal that just can't fit into conventional financing-GIVE US A CALL at 888-316-1787! We have other sources available with loan amouts above $1,000,000.

3. Investor Loans for GAS STATIONS AND HOTELS!
We have been able to do these loans on owner occupied deals for a while but finding investor money for gas stations and hotels has been very hard-but now we have it! Quick Hits: $750K-$5,000,000(under $750K case by case), INTEREST ONLY option available at 4.95% FIXED (1.5 DCR required).1.3 DCR required for principle and interest option. Triple net leased investor deals are the focus. Can also do RV Parks, retail, Mobile Home parks and MORE. This is a SMOKING investor product for the deals that the life conduits and big banks ignore. NO construction on this product.

Call Don at-888-316-1787 or email me at dg1stccc@aol.

APPLY HERE

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Why We Live as Long as We Do...

On the first day God created the cow. God said, "You must go to the field with the farmer all day long and suffer under the sun, have calves and give milk to support the farmer I will give you a life span of sixty years."

The cow said, "That's a kind of a tough life you want me to live for sixty years. Let me have twenty years and I'll give back the other forty."

And God agreed.

On the second day, God created the dog. God said, "Sit all day by the door of your house and bark at anyone who comes in or walks past. I will give you a life span of twenty years."

The dog said, "That's too long to be barking. Give me ten years and I'll give back the other ten."

So God agreed (sigh).

On the third day God created the monkey. God said, "Entertain people, do monkey tricks, make them laugh. I'll give you a twenty year life span."

The monkey said, "How boring, monkey tricks for twenty years? I don't think so. Dog gave you back ten, so that's what I'll do too, okay?"

And God agreed again.

On the fourth day God created man. God said, "Eat, sleep, play. Do nothing, just enjoy, enjoy. I'll give you twenty years."

Man said, "What? Only twenty years? No way! Tell you what, I'll take my twenty, and the forty cow gave back, and the ten dog gave back and the ten monkey gave back. That makes eighty, okay?"

"Okay," said God. "You've got a deal."

So this is why for the first twenty years we eat, sleep, play, enjoy, and do nothing;

for the next forty years we slave in the sun to support our family;

for the next ten years we do monkey tricks to entertain our grandchildren;

and for the last ten years we sit in front of the house and bark at everybody.


Regards,

1st Coastal Commercial Capital
1st Coastal Commercial Capital






NEED TO SPEAK TO SOMEONE?
 Call 1-888-316-1787 or email
       dg1stccc@aol.com.
BRIDGE LOANS

             
 

HOT NEW FINANCING PROGRAMS (GS)

Non-Recourse Bridge Debt from $5,000,000. 

Today’s capital markets are providing ample funds
for larger transitional assets. Our sources
has identified a national bridge debt provider who
will fund down to $5,000,000 of capitalization and
to 80% of cost on a non-recourse basis.
This capital provider will consider below break-even
assets or properties that are currently vacant with no
in-place cash flow. Rehab construction funds will also
be provided with a completion guarantee. Pricing will
range from LIBOR 4.75 to 6.50 plus 1 point origination
for up to a three year term before extensions.
Products include the four core assets plus hospitality.

CLICK OUR 
QUICK
LOAN
QUALIFIER

Guestbook-04-june.gif (79725 bytes)

 

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Non-Recourse Faith-Based Lender. (GS)

This funding source is working with a National Bank currently funding construction, bridge/reposition and permanent loans to non-profit faith based organizations on a non-recourse basis. All faiths will be considered for ground-up, reposition or permanent funding of churches, temples, schools, hospitals/medical facilities that have a religion-affiliated use. Non-profit organization that can demonstrate a minimum of 250 giving units will be considered. The collateral does not need to be on the primary campus but must be faith-related. Loan limits range from $1,000,000 to $25,000,000.

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$25,000,000 Joint Venture
Acquisition & Construction Equity
(GS) 

Our Source arranged the $25,000,000 Joint Venture equity to acquire a to-be-built multi-family development site in the Inland Empire, California. GSP was engaged with a very short timeframe to secure an equity partner that would permit the Sponsor to acquire the dirt in a competitive bid environment. The acquisition process required a “closed as applied for” structure should the Sponsor be awarded this development opportunity. GSP made a market to ensure no surprises after the deposit became non-refundable, and assisted in the negotiation of a venture that would provide capital through construction and stabilization. The new venture added overwhelming support assisting the Sponsor to win the bid. The Sponsor is expanding their Southern California multifamily platform and is currently working with this institutional partner on a subsequent multifamily development site.

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Smaller Portfolio Lenders
Expanding their Programs (GS)

Smaller local and regional banks are looking to diversify portfolios as stabilized multifamily market competition continues. Small banks are competing with Fannie, Freddie, regional, and national banks for stabilized multifamily product. As a result, yields continue to be driven down for a dwindling product supply as many apartments are locked-up on 10 year loans. More lenders are now looking outside the box, and will consider construction, bridge/reposition, commercial and special purpose assets priced at traditional bank yields. Our Partners has identified a local bank willing to lend $1,000,000 to $5,000,000 on stabilized multifamily on a national level. This same capital provider will also fund significant bridge/reposition requests for commercial assets in Southern California. Ground-up construction will require pre-leasing from an investment grade tenant. Non-traditional commercial uses (hospitality, assisted living, etc.) will also be considered. Coupons range from 4.75% to 6.0% based on product type and borrower strength. Non-recourse is available for sub-50% LTV loans on stabilized assets.

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RATES ARE DOWN AGAIN!!
Click to apply


    Lender Program Snapshots.

Below You Will Be Introduces To Some Of Our
PREFERRED FUNDING Sources.
They Offer Hard Or Bridge Loans That Can Be Closed Quick.

$25,000 to $400,000 (AP)
 
Amortized: 15 to 20 years
Owner Occupied or Investor
Great for Self Employed
Most Property Types Considered

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$250,000 To $2,000,000 (BF)
 
Super HOT Lender That Will Do Apartment Deals as
Low as $250,000


Up To 70% LTV
5 Units Or More
3/1 and 5/1 Arms Available
Amortization: 25 to 30 Years 
Prepayment Options

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$100,000 To $1,200,000 (BB)

Standing Commercial Properties Only
No Land, No Development, No New Construction
Will Consider Rehab
No Upfront Fees
Term Sheets 48 Hours Or Less
50% To 58% LTV On Refinance
60% To 70% On Purchases
NO PREPAYMENT PENALTY!

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$1,000,000 To $7,000,000 (BC)

Proven Quick Closer"s Excellent Speed and Service

Private Funds
1 to 2 Year Terms
Interest Only
Big On Apartments But will Consider All Types
No Land
Very Flexible
Can Close In As Little As 2 WEEKS!

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$500,000 To $40,000,000 (BS)

One Of Our Wall Street Funders That Is Great To Work With

Primarily Income Producing Properties
Some Land Considered
LTV Up To 80% on Multi Family
Still Some Gas Station Loans Available
Hospitality (Flagged Hotel)
Church's
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$2,000,000 To $40,000,000 (BT)

This Funder Has Over 35 Years Of Experience
Structuring Short Term Deals.
They are True Direct Lenders That Do Not Securitize
Their Portfolio.
They Can Customize The Loan To Fit The Deal.

Notes And Acquisition
No Prepay or Exit Fees
Can Close Within 2 To 4 Weeks (sometime less)
85% LTV For Income Producing
Rates Floats Over Prime
Terms Are 2 To 3 Years
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$500,000 To $20,000,000 (ECC)

Are You Experiencing Liquidity Constraints? These Guys
Are The Real Deal.
They Get IT And Can Work Within The Reality
Of The Current Economic
Environment.

Up To 75% LTV
No Prepayment Penalties
Close In 1 To 2 Weeks
Terms: 1 To 2 Years
All Types Of Real Estate Considered


CLICK HERE for quick approval
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Whats New at SBA

Small business owners have long complained
about the red tape, long waits, and prohibitive
collateral requirements of Small Business
Administration-guaranteed loans. This spring
the agency will introduce two new SBA loan
programs that will funnel capital to underserved
entrepreneurs directly through
nonprofit microfinance organizations, says Grady
Hedgespeth, director of the SBA's Office of Financial
Assistance in Washington, D.C. He spoke recently to
Smart Answers columnist Karen E. Klein about the two
new loans, as well as the brand-new
504 commercial mortgage refinance program
and how they work.

Click Here To Get Started on your application

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