Restructuring your loan can be very daunting, even for the most sophisticated borrower. The process will feel one sided and will often feel like there is no one on your side. All successful negotiations require an intimate understanding of the motivations and drivers of the ‘person(s)’ you are negotiating with. What you need is an advocate who has first-hand experience from the “other side of the table” of the negotiations. Having an advocate with that experience greatly increases your chances of a successful outcome. Turnkey Lending Group created this role of a borrower advocate and because of our unique first-hand experience within the Lenders and Special Servicers we have had the most success of any firm.

3. STEP 1
• YOU NEED TO KNOW WHAT TYPE OF LOAN YOU HAVE.
• IS IT A CMBS OR A PORTFOLIO LOAN

4. DO YOU KNOW THE DIFFERENCE?
CMBS
• THESE CARRY THE LONGEST FIXED TERMS AND
THE LOWEST INTEREST. STABILIZED PROPERTIES
THAT PRESENT THE LOWEST RISK. THESE LOANS
ARE PACKED, CONVERTED TO BONDS ON WALL
STREET.
PORTFOLIO
• SHORT TERM CREATIVE SOLUTIONS. THESE
LOANS ARE MADE BY THE LENDER AND STAY IN
THE LENDERS PORTFOLIO (HENCE THE TERM) FOR
THE DURATION OF THE TERM. THESE ARE GREAT
FOR THE INVESTOR THAT HAS A THOUGHT OUT
AND DOCUMENTED EXIT STRATEGY.

6. No need to worry!

7. STEP 2
• IS YOUR COMMERCIAL LOAN BACKED BY FANNIE MAE?
• IS YOUR LOAN CURRENT? IN DEFAULT? IN ARREARS?
• WHAT IS YOUR NOI (NET OPERATING INCOME)?
• WHAT IS YOUR NPV (NET PRESENT VALUE)?
• WHAT IS THE PROPERTY TYPE (APARTMENT, OFFICE, RETAIL ETC.)
• DO YOU HAVE A CLAUSE IN THE AGREEMENT FOR AN EXTENSION?
• WHAT IS YOUR DCR (DEBT COVERAGE RATIO) NOW? NOI DIVIDED BY THE OUTSTANDING LOAN BALANCE

9. IT SEEMS LITTLE OVERWELMING!

10. STEP 3
• ONCE YOU STEP 1-2 COMPLETE IT GETS EASIER
• CMBS LOANS REQUIRES THE LOAN BE IN DEFAULT OR IT BE IMMINENT BEFORE MODIFICATION
• PORTFOLIO LOANS CAN BE NEGOTIATED WITH THE LENDER (TYPICALLY) BECAUSE ITS ON THEIR BOOKS

13. STEP 4
• UPDATED PFS (PERSONAL FINANCIAL STATEMENT)
• UPDATED I/E (INCOME & EXPENSE REPORT)
• UPDATED RENT ROLL
• CURRENT MORTGAGE STATEMENT
• HISTORICAL I/E & RENT ROLL TO SHOW THE DEPRECIATION

14. STEP 5
• PORTFOLIO LOANS ARE NOT AS DIFFICULT.
• IF YOU’RE STILL SHOWING A 1.2 DCR IT SHOULDN’T BE A PROBLEM
• IF YOU’RE HEMORRHAGING THEY WILL NEED AN UPDATED EXECUTIVE SUMMARY ON YOUR BAIL OUT.

15. STEP 6
• CMBS HAVE LAWS AND REGULATIONS THAT REQUIRE CERTAIN CONDITIONS.
• THE SPECIAL SERVICER IS THE ONLY ONE LEGALLY THAT CAN MODIFY TERMS.

16. STEP 7
• WE WILL HELP YOU PUT TOGETHER A PROPOSAL TO PRESENT TO THE LENDER
• THIS CAN BE A LENGTHY PROCESS SO DO NOT WAIT UNTIL THE LAST MINUTE
• SOME STATES FORECLOSURE PROCESS IS AS SHORT AS 37 DAYS

17. STEP 8
STAY OPEN FOR BUSINESS!
THANK YOU!!!
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