Presented Exclusively to: Reginald Ollison VP of Business Development Atlantic Equity Partners. LLC. 919-876-1590  fax: 91...
AGENDA <ul><li>Why We’re Talking About Commercial </li></ul><ul><li>About US </li></ul><ul><li>The Program Approach </li><...
WHY WE’RE TALKING ABOUT COMMMERCIAL  <ul><li>For years, the commercial property segment has been underserved or ignored by...
ABOUT US!  <ul><li>Atlantic Equity Partners LLC is a Raleigh-based commercial real estate consultant providing fixed-rate,...
THE PROGRAM APPROACH <ul><li>Commercial Lending Based on Assets Base Lending Guidelines </li></ul><ul><li>Faster Closings ...
PROGRAM FEATURES <ul><li>15, 20, 30 year fully amortized (No Balloons) </li></ul><ul><li>Fixed and Adjustable rate 6, 3,5,...
PROPERTY TYPES <ul><li>Eligible Property Types </li></ul><ul><li>Multifamily </li></ul><ul><li>Office </li></ul><ul><li>Wa...
BORROWERS CREDIT REQUIREMENTS  <ul><li>Borrower with 600+ middle score </li></ul><ul><li>Reasonable debt relative to their...
Small Commercial Loans  100K to 1 Million <ul><li>Financing available for New Construction Projects 65-75% Future Sale Val...
<ul><li>Commercial Loan $2 Million - $100 Million </li></ul><ul><li>Loans Available Nationwide for multifamily, mixed-use,...
Healthcare – Senior Living – Retirement Communities <ul><li>Developing a Plan of Finance </li></ul><ul><li>Atlantic Equity...
Atlantic Equity Partners Senior Facilities Programs <ul><li>Products & Services Type of Properties   </li></ul><ul><li>Ski...
Checklist for Due Diligence Requirements  .  Borrower / Developer Information A. Borrowing Entity 1. Organizational docume...
<ul><li>II. Company Information   A. Names & addresses of each existing and proposed shareholders of company, or managers ...
CONSTRUCTION LENDING <ul><li>Acquisition & Construction </li></ul><ul><li>LOAN AMOUNT : $1,000,000 and up. </li></ul><ul><...
LAND LOANS Acquisition & Development <ul><li>LOAN AMOUNT : $500,000 and up. </li></ul><ul><li>BORROWER : Owner/developer w...
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  • 1) Good afternoon Welcome 2) This presentation is an introduction to “Small Balance Commercial” loan program 3) My name is ______ from XYZ Mortgage 4) We are here this afternoon because we know you come across loan requests for small balance commercial properties but until now you probably did not have a formal outlet to handle these transactions 5) This presentation will show you how you can now take advantage of the deals
  • What we are going to discuss today are Why Commercial Lending? Opportunity: Tell you why you should get excited Approach: Explain where this program fits in commercial origination’s Program: Go over the features of the program Opportunity: How much money can you make Properties: Go over types of properties for the program Borrower: Help you recognize the type of borrower Sample Deals: provide real examples of successful transactions that you may have already been exposed to Next How can you begin today. Where do you start
  • 1. Up to this point most folks have ignored commercial lending. The inefficiencies and high cost of these transactions made the process complicated and cumbersome which forced most realtors to focus on residential and disregard commercial transactions   The commercial lending industry is: Non-standardized Limited secondary market Individualized deals Property or business occupying space provides proof of ability to repay debt (DSCR) If someone would be able to bring some type of innovation to commercial like residential then there would be more choices 2. With commercial there is no standard application, process and guidelines vary on a deal by deal basis even within the same institution. We’ve taken the residential underwriting and applied it to commercial property types. By using consistent, guidelines(FNMA) and forms we have removed the risk of unpredictability from commercial real-estate lending.
  • How does this product translate in an opportunity for realtors? Some commercial property types usually end up at residential lenders because large balance commercial originator’s feel these deals are too small Because properties types for sale have increased realtors have been exposed to all types of commercial transactions but consistently have no where to place them. Due to this increase in property types the same guy who buys residential can buy commercial, your target audience is the same Close quicker (process) and less cost creates more opportunity sellers and buyers allowing for all sides to be satisfied and continue to transact. Diversify: Larger geographic lending capability since there are No RESPA rules and only a few states with some licensing requirements. Less Competition: Fewer brokers originate commercial deals Leverage: Existing relationships Existing Co-broker relationships Modify current soliciting to include specific property types. Revise your current Marketing plan and include commercial you leverage your residential business  
  • The underlying theory behind the program is that small balance commercial loans actually perform the same as residential loans and therefore can be underwritten the same way. Designed For Residential Lenders Predictable and consistent (1003 and Commercial Supplement) Based on Fannie/Freddie guidelines Focus on Borrower vs. Property Cash Flow Credit score Personal financial strength All income sources, not just property cash flow Assets and cash reserves DTI or DSCR If DTI &gt; 45 - 55, will use DSCR
  • Lots of good features Most stay away from loans from 100,000 to $1 million No Balloons Different interest rate options No seasoning on down payment but must be documented No seasoning on length of ownership
  • Some commercial property types usually end up at residential lenders because large balance commercial originator’s feel these deals are too small Residential lenders need information that is predictable and consistent Don’t need to get an education in finance, its FNMA language that you already know. You don’t stop being a residential lender Matrix driven If we stay within the guidelines of these property types we can ensure and quick and predictable process Churches- part of strip malls Gas stations –environmental Restaurants part of strip mall
  • Just as if a borrower were buying a home we are looking at their credit, personal financial strength, income from all sources and other assets
  • Easy: Simple, Consistent, Streamlined submission process. You already know how to fill out these forms as a residential broker Profitable: You have so many different variations of how to make money with this program. Back end, front end and reasonable fees without lender origination fees. You can sell this product retail co-broker with other mortgage firms. Fast: You can put money in your pocket faster compared to traditional lenders that will take 60-90 days to close.
  • Click Here)

    1. 1. Presented Exclusively to: Reginald Ollison VP of Business Development Atlantic Equity Partners. LLC. 919-876-1590 fax: 919-976-1540 Email address: atlantic@usa.com SBA  CONDUIT  HARDMONEY  CONSTRUCTION LENDING
    2. 2. AGENDA <ul><li>Why We’re Talking About Commercial </li></ul><ul><li>About US </li></ul><ul><li>The Program Approach </li></ul><ul><li>Program Features </li></ul><ul><li>Property Types </li></ul><ul><li>Target Borrowers </li></ul><ul><li>Sample Deals </li></ul><ul><li>Summary </li></ul>
    3. 3. WHY WE’RE TALKING ABOUT COMMMERCIAL <ul><li>For years, the commercial property segment has been underserved or ignored by lenders. </li></ul><ul><li>If the efficiencies of conventional and sub-prime lending were brought to this commercial segment, a tremendous opportunity would be created. </li></ul><ul><li>Commercial loans made easy . </li></ul><ul><li>Equipped with our innovative commercial mortgage program, you can expand markets and take full advantage of this opportunity. </li></ul>
    4. 4. ABOUT US! <ul><li>Atlantic Equity Partners LLC is a Raleigh-based commercial real estate consultant providing fixed-rate, non-recourse and floating-rate recourse commercial real estate loans Atlantic Equity Partners LLC provides commercial mortgages secured by land or existing multifamily, retail, office, hotel, industrial, self-storage and senior care facilities. In addition, Atlantic Equity Partners LLC provides fixed and floating-rate recourse loans on other owner-occupied commercial assets, </li></ul><ul><li>Atlantic Equity Partners LLC. provides loans through its Commercial Loan Program (CMP). The program is divided into two products: the Small Loan Program for loans from $100,000 to $3 million and the Large Loan Program for loans from $2 million to $100 million. Atlantic Equity Partners LLC is a service-oriented firm staffed with associates that are highly skilled in the processing and closing of conduit, SBA, Hard money loans for their clients. Conduit and SBA loans are inherently more complex and cumbersome for borrowers versus traditional financing and therefore Atlantic Equity Partners LLC has hired individuals that are experts in each part of the loan process, including originators that are intimately familiar with the loan products offered by Investor skilled in the underwriting of complex properties, often with poor information, and closing staff that can answer all the questions regarding the legal complexities of conduit , SBA and Hard Money loans and get loans closed. </li></ul>
    5. 5. THE PROGRAM APPROACH <ul><li>Commercial Lending Based on Assets Base Lending Guidelines </li></ul><ul><li>Faster Closings </li></ul><ul><li>Predictable and consistent </li></ul><ul><li>Quick up-front approvals (48-72 hours) </li></ul><ul><li>Based on SBA, Conduit, Assets Base, Hard Money </li></ul><ul><li>Less Complex </li></ul><ul><li>Borrower Focus vs. Property Cash Flow </li></ul><ul><li>Credit score </li></ul><ul><li>Personal financial strength </li></ul><ul><li>All income sources, not just property cash flow </li></ul><ul><li>Assets and cash reserves </li></ul><ul><li>More Qualified Buyers and Properties </li></ul><ul><li>Qualified on DTI OR DSCR </li></ul><ul><li>Lower Costs </li></ul>
    6. 6. PROGRAM FEATURES <ul><li>15, 20, 30 year fully amortized (No Balloons) </li></ul><ul><li>Fixed and Adjustable rate 6, 3,5, 7 options </li></ul><ul><li>Purchase, Rate & Term Refi, Cashout Refi (unlimited) </li></ul><ul><li>Owner occupied or investor </li></ul><ul><li>90% Financing available (10% Down) </li></ul><ul><li>95% CLTV with seller 2 nd (5% Down) </li></ul><ul><li>Individuals, LLCs, Corporations, Partnerships, Trusts </li></ul><ul><li>No limit on loans to one borrower </li></ul><ul><li>No depository relationship required </li></ul><ul><li>Up-front Approvals </li></ul><ul><li>State Income / State Assets </li></ul>
    7. 7. PROPERTY TYPES <ul><li>Eligible Property Types </li></ul><ul><li>Multifamily </li></ul><ul><li>Office </li></ul><ul><li>Warehouse/Self Storage </li></ul><ul><li>Bed & Breakfast </li></ul><ul><li>Mixed-use </li></ul><ul><li>Retail </li></ul><ul><li>Light Industrial </li></ul><ul><li>Qualifying Mobile Home Parks </li></ul><ul><li>Special Purpose Properties </li></ul><ul><li>Land </li></ul><ul><li>Churches </li></ul><ul><li>Gas Stations / Marinas </li></ul><ul><li>Restaurants/Hotels </li></ul><ul><li>Heavy Industrial </li></ul><ul><li>Special Purpose Properties </li></ul><ul><li>New Construction Subdivision </li></ul><ul><li>Senior Living Projects </li></ul>
    8. 8. BORROWERS CREDIT REQUIREMENTS <ul><li>Borrower with 600+ middle score </li></ul><ul><li>Reasonable debt relative to their income </li></ul><ul><li>Willing and able to fully document or state income </li></ul><ul><li>Non-Bank/Traditional Transaction - </li></ul><ul><li>DTI Driven </li></ul><ul><li>Executive Summary of Principles resumes </li></ul><ul><li>Profit and loss statements </li></ul><ul><li>Unserved & Underserved </li></ul><ul><li>Letter of Corporations </li></ul>
    9. 9. Small Commercial Loans 100K to 1 Million <ul><li>Financing available for New Construction Projects 65-75% Future Sale Value </li></ul>
    10. 10. <ul><li>Commercial Loan $2 Million - $100 Million </li></ul><ul><li>Loans Available Nationwide for multifamily, mixed-use, mobile home parks, office, retail, warehouse, self-storage, light industrial, single-tenant retail and etc. </li></ul><ul><li>Competitive rates, call for current rate on your specific property </li></ul><ul><li>Up to 30-year FULL AMORTIZATION   - more cash in your pocket & less risk with a fully amortized loan! </li></ul><ul><li>Up to 80% financing for all property types </li></ul><ul><li>For construction purchases, refinances and cash-out refinances </li></ul><ul><li>No seasoning requirement for cash-out refinancing </li></ul><ul><li>No replacement reserve impounds </li></ul><ul><li>Low Documentation (stated income) program available </li></ul>Commercial Loan from 2 Million to 100 million
    11. 11. Healthcare – Senior Living – Retirement Communities <ul><li>Developing a Plan of Finance </li></ul><ul><li>Atlantic Equity Partners LLC provides financing for a variety of healthcare related institutions, including hospitals, senior living centers and retirement communities. We have experts who can assist your organization with a variety of financial services </li></ul><ul><li>In developing an appropriate plan of finance, a number of strategic, operational and financial issues must be considered. Some issues are identifiable from the beginning; others come into focus during the structuring and execution of the financing. Some issues to be addressed include: </li></ul><ul><li>Development of financial, operational and strategic goals (near-term and long-term). </li></ul><ul><li>Identification of applicable debt financing options. </li></ul><ul><li>Options may include taxable or tax-exempt debt (fixed, variable, synthetic) and/or equity. </li></ul><ul><li>Evaluation of each option based on specific criteria Positioning the issue for successful </li></ul><ul><li>distribution (institutional, retail, or both). </li></ul><ul><li>Current and future credit-worthiness. </li></ul><ul><li>Future debt capacity for additional projects and access to capital . </li></ul><ul><li>Legal structure. </li></ul><ul><li>Marketing and Distribution </li></ul><ul><li>Our firm's early decision to specialize in healthcare has resulted in an unmatched sales and distribution network. Atlantic Equity Partners LLC. can market healthcare bonds of every credit rating to institutional purchasers, but also to individual investors directly through our retail network. Our ability to blend retail and institutional distribution into a unified marketing plan enables us to market healthcare securities at attractive interest rates in all market conditions. </li></ul>
    12. 12. Atlantic Equity Partners Senior Facilities Programs <ul><li>Products & Services Type of Properties </li></ul><ul><li>Skilled Care Facilities </li></ul><ul><li>Intermediate Care Nursing Home </li></ul><ul><li>Sheltered Care or Personal Care Nursing Facilities </li></ul><ul><li>Board and Care, Assisted Living & Independent Living Facilities </li></ul><ul><li>Psychiatric Facilities </li></ul><ul><li>Rehab Hospitals </li></ul><ul><li>Drug & Alcohol Centers </li></ul><ul><li>Apartments </li></ul><ul><li>Other Special Purpose Facilities </li></ul><ul><li>Types of Loans </li></ul><ul><li>New Construction </li></ul><ul><li>Refinance </li></ul><ul><li>Refinance with Rehabilitation </li></ul><ul><li>Refinance with Expansion </li></ul><ul><li>Acquisition with Rehabilitation </li></ul><ul><li>Exercise Purchase Option / Acquisition </li></ul><ul><li>Straight Acquisition </li></ul><ul><li>Types of Programs </li></ul><ul><li>FHA/HUD </li></ul><ul><li>Fannie Mae / Freddie Mac </li></ul><ul><li>Conventional First Mortgage </li></ul><ul><li>Acquisitions / Equity </li></ul><ul><li>Bridge Loans </li></ul>
    13. 13. Checklist for Due Diligence Requirements . Borrower / Developer Information A. Borrowing Entity 1. Organizational documentation for Corporations a) Articles of Incorporation b) Certificate of Incorporation c) By-Laws d) Corporation and Commission Letter of Good Standing e) Partnership Agreement 2. Organizational documentation for LLC a) Limited Liability Certification b) Operation Agreement c) LLC Good Standing Certificate 3. Board Resolution to Encumber 4. Interim financial statement a) Profit and loss statement b) Balance sheet 5. Two years complete federal tax returns 6. List of all properties owned or leased at present time 7. Three lender references and three general business references 8. Summary of experience within last 24 months B. Information on Principals of Borrowing Entity 1. Current personal financial statements 2. Two years complete federal tax returns 3. Credit Report Authorization form
    14. 14. <ul><li>II. Company Information A. Names & addresses of each existing and proposed shareholders of company, or managers and members for LLC B. Confirmation of appointment of the directors and that none are disqualified from being director C. Organizational chart including all stockholders & employees D. Name, mailing address, telephone & contact person of auditors/ accountants of company E. Authorized and issued share capital of company </li></ul><ul><li>1. Are all issued shares fully paid up? Details of any pledge, lien, charge or </li></ul><ul><li>encumbrance affecting shares 2. Details of any signed contracts from current owners to sell their shares. </li></ul><ul><li>F. Details of all bank accounts including all loans. G. Any guarantees for which company may be liable H. Details of any foreign exchange contracts company has or plans to enter into I. List of following: directors/employees, including resume for each and any contracts entered into with each director or key employee </li></ul><ul><li>J. Details regarding directors/key employees </li></ul><ul><li>1. Terms and conditions of employment 2. Benefits packages including pension or life insurance, sick pay, disability plans 3. Bonus plans, incentive plans and share options 4. All long-term service or consultancy agreements 5. Any current obligations to pay compensation for loss of employment 6. Details of any trading or other arrangements 7. Details of any agreement with trade unions 8. Copies any major agreements between company and customers, suppliers, </li></ul><ul><li>licensors and licensees 9. Schedule of insurances for company, including names and addresses of </li></ul><ul><li>insurance advisors 10. Details of any investigation of company by any governmental body 11. Copies of leases or agreements between current tenants and landlord (if </li></ul><ul><li>applicable 12. Details of any consents required for a change in control from any shareholder, </li></ul><ul><li>creditor, lender, or other person 13. An operating company: </li></ul><ul><li>a) Five year projection b) Opening balance sheet after receipt of funding </li></ul>
    15. 15. CONSTRUCTION LENDING <ul><li>Acquisition & Construction </li></ul><ul><li>LOAN AMOUNT : $1,000,000 and up. </li></ul><ul><li>BORROWER : Owner/ developer with track record. </li></ul><ul><li>LOAN TERM : 1 to 3 years, interest only. </li></ul><ul><li>PREPAYMENTS : Loans may be prepaid at any time, after a lockout period, with no prepayment penalties. </li></ul><ul><li>INTEREST RATE : Interest rates start at 10% 12%. Interest is paid monthly on the amount drawn based on the disbursement schedule. Allowances are made for prepayments of interest during the construction period. </li></ul><ul><li>COLLATERAL : First-mortgage on land and existing structures. Borrowers must personally guarantee all notes. On larger loans completion/construction bond by G.C. and/or Letter of Credit from investment grade institution. </li></ul><ul><li>L-T-V RATIO : Up to 65% of the As-Is Value1 by independent third party MAI appraisal, up to 75% of approved infrastructure development costs, and up to 80% of approved vertical development costs. </li></ul><ul><li>USE OF LOAN : Proceeds may be used for construction costs, real estate acquisition, and related costs. </li></ul><ul><li>PROCESSING : Completed loan application, title report, appraisal, project overview, proposed building plans, cost projection for disbursement schedule, proof of funds for purchase of land, two years personal and corporate tax returns. Approvals within 24 hours, commitments within 48 hours. </li></ul><ul><li>EXIT FEE : 2% to 8% of loan amount in lieu of equity. </li></ul><ul><li>OTHER COSTS : Application Fee: $5,000 to $10,000, which is NON-REFUNDABLE if the Letter of Interest is in compliance with lender’s Commitment. </li></ul><ul><li>Commitment Fee : 3% of Loan Amount, payable 1% to 3% percent at commitment and the balance at closing. </li></ul><ul><li>SUBMISSIONS : Borrower’s financial statements and tax returns for 2 years • Brief property description • Sources and use of proceeds statements • Appraisal, if available. </li></ul>
    16. 16. LAND LOANS Acquisition & Development <ul><li>LOAN AMOUNT : $500,000 and up. </li></ul><ul><li>BORROWER : Owner/developer with track record. </li></ul><ul><li>LOAN TERM : 1 to 3 years, interest only. </li></ul><ul><li>PREPAYMENTS : Loans may be prepaid at any time, after a lockout period, with no prepayment penalties. </li></ul><ul><li>INTEREST RATE : Interest rates start at 12%. Interest is paid monthly on the amount drawn based on the disbursement schedule. Allowances are made for prepayments of interest during the construction period. </li></ul><ul><li>COLLATERAL : First-mortgage on land and existing structures. Borrower must personally guarantee all notes. On larger loans completion/construction bond by G.C. and/or Letter of Credit from investment grade institution. </li></ul><ul><li>L-T-V RATIO : Up to 50% of the As-Is Value1 by independent third party MAI appraisal and up to 60% of approved infrastructure development costs. </li></ul><ul><li>USE OF LOAN : Proceeds may be used for construction costs, real estate acquisition, and closing costs. </li></ul><ul><li>PROCESSING : Completed loan application, title report, appraisal, project overview, proposed building plans, cost projection for disbursement schedule, proof of funds for purchase of land, two years personal and corporate tax returns. Approvals within 24 hours, commitments within 48 hours, and closings in as little as 14 business days. </li></ul><ul><li>OTHER COSTS : Application Fee: $10,000 to $25,000, which is NON-REFUNDABLE if the letter of interest is in compliance with lender’s Commitment. </li></ul><ul><li>Commitment Fee : 3% of Loan Amount payable 1% to 3% percent at commitment and the balance at closing. </li></ul><ul><li>Exit Fee: Up to 2% of loan amount in lieu of equity. </li></ul><ul><li>SUBMISSIONS : Brief property description • Budget • Sources and use of proceeds statements • Appraisal, if available </li></ul>
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