How to Hit Your 2015 Goals!

You’re probably reading this on the 8th or the 9th of January.  If you are, it is likely you’re already off track from the resolutions or goals you set for 2015.  Maybe the negative self-talk is already beginning and, the beginning of the end of those goals being hit has already begun.  “You didn’t hit your goals last year, what makes you think you can do them this year” says the negative inner voice.  I will tell you why you will do it this year, because you are going to apply what I am about to share with you below.  Embrace these 3 steps and thrive in 2015!
Step 1: Understand you will fail initially, but remember failure is never final.  Listen, you are the same person on Jan 1 as you were on Dec. 31.  You didn’t wake up with all new habits…habits take 21 days to form.  If you didn’t work out the last half of 2014 you are not going to wake up Jan 1 and be Rocky Balboa, up at 4 a.m., drinking 5 raw eggs before running 10 miles.  If you do manage to do that on day 1 through sheer willpower it will not last long enough to become a habit unless you are a complete freak of nature.  For the rest of us mortals, you have to cut yourself some slack but, DON’T accept it.  Understand you will fall back into negative thought patterns and habits,  don’t accept it-get mad and, then get back on the horse the next day. Never let one bad day stretch into 2.  I had a horrible day Jan. 2nd of this year….but I woke up on Saturday the 3rd early before my family, got alone with the Spirit and got fired up all over again.  Know you will fail, just contain it to a day and don’t let it duplicate.

Step 2: Just do something.  In each goal or area just do something…start small.  Maybe you made a commitment to making 10 outbound sales calls a day but, your first day back you got bogged down with paperwork from vacation.  Do at least one or two outbound calls that day-do something, even if it is a small thing.  Maybe you wanted to start working out but you are struggling to find the time to get to the gym for 1 hour because of a backlog at work-do some push-ups before work.  Walk around your building 10 times during lunch.  Do something!  All success is predicated on small steps taken daily toward the goal.  If you can’t hit the entire goal in a day, at least do something and then try to do one better the following day. If you do just one push up a day and, then add one more to it each day, by year end you will be doing 365 push-ups a day.  You do that and you will look like the P90X guy. Small steps done daily.

Step 3: Guard your mind.  ALL SUCCESS IS MENTAL.  I repeat, ALL SUCCESS HAPPENS IN YOUR HEAD.  By your thoughts you either make your success or sabotage it.  You have to eliminate or minimize your bad thoughts and increase or maximize positive thoughts.  You cannot succeed if you are mentally spending your free moments focused on the negative or telling yourself negative things.  IF you have a roof over your head, running water, food, a car and a cell phone you are tremendously blessed.  If you have your health as well, then shame on you for complaining about anything.  A stage 4 cancer person would kill for your life.  In general, 95% of any American’s life is wonderful and only 5% is not. We have a habit as humans to focus on the 5% that is not.  You need to fight this habit, stay focused and thankful on the 95% that is right and see the 5% that is wrong as an opportunity to grow.  How do you fight this habit of negative thinking and self-talk?  With focused effort and new habits.

For people who are half glass full type people, like me, maybe you just need to start your day with some quiet time.  Get in your zone.  Being religious, my first part of my day I spend with the Lord.  That will generally get me in the right mindset.  Now it may not be enough just to do that, especially if you are a half glass empty type of person.  If you are significantly negative in your self-talk, maybe even partially depressed, you need to go hard core to fight this habit.  Don’t just do the quiet time in the morning, fill up all your free mental time with positive thoughts, music, and best yet, service to others.  Make a playlist called inspirational and play it in your car on the way to work or, a self-help podcast or CD.  Bombard your mind with positive thoughts and music.  Have a few free minutes during the day?  Read a positive spiritual or self-help book.  And the most positive thing you can do to combat negative mental thoughts is to serve others.  You can’t be depressed serving in a soup kitchen. 

Whether you do something nice for the neighbor that is hurting, call the friend you know who is going through cancer, serve your spouse in some way that makes their life better, whatever it is-focus on others.  Take captive your thoughts!  God gave us control of our minds. You can literally say, no to negative thoughts as soon as they happen and then lay a positive quote or song down and get back on track mentally.  I believe that these negative attacks are literally from the devil and I will often quote Jesus when a negative thought happens, “Get behind me Satan”.  Come up with something that you shout out mentally when that negative thought pops in your head-nip it quick and don’t let it become an all-day affair.  Every day good things happen to you and every day something negative happens.  You have to control your mind and mentally brush aside the negative moment and re-focus on the positive.  All day long, control your mind and you will control your life.  If you are not in this habit it will take some time.  You must make it a priority to control your mental thoughts if you want true success.

That’s it…. 3 steps that will GUARANTEE a great 2015.  They are not quick fix tips, you need to apply them and it takes time to learn these new habits and accept momentary failures and screw ups as momentary, but you can do it!  I believe in you, and look forward to hearing about your success stories for 2015.

Bill

P.S. Don’t forget, we close more commercial loans than anyone else in the country.  I will review any deal.  I can usually have preliminary approval in as little as 48 hours!  I do it with NO CHARGE upfront.  I am the only NO RISK option in commercial lending.  Give me a call today at 949-371-9947 if you have a deal you want me to help you with.  

Be blessed! 

Have you been on the fence about refinancing?

Have you been on the fence about refinancing? Well, it’s time to take the plunge, because waiting past October …
If you’re thinking about refinancing, don’t delay or you could be in for a nasty surprise. Come October, interest rates could reach new heights, making your refinance more costly than you’d probably like.
Why? Well, if the economy continues to improve as predicted, the government plans to taper off their stimulus plan this October, according to the minutes of their June 17-18 Federal Open Market Committee Meeting.
Keep reading to find out how these plans could affect you as a homeowner and why you should consider refinancing before October.
The End of Federal Stimulus
As part of a stimulus plan to kickstart the economy after the financial crisis, the government introduced Quantitative Easing (QE), in which the government buys up mortgage-backed securities, according to a recent report by the Congressional Research Service.
The purpose of QE was to influence private interest rates, ultimately encouraging people to borrow money – and take out mortgages to buy homes, notes the report. As a result, interest rates will likely be higher come fall.
“All signs point to rates going up in the future, so it makes sense to refinance as soon as possible,” says Brian Koss, executive vice president of Mortgage Network in Danvers, Massachusetts. “As October approaches, I believe we will begin to see rates edge higher. For home owners, this could make refinancing more costly.”
Higher interest rates mean higher monthly payments, which not only affects new homebuyers but also current homeowners who want to refinance.
Slowing Home Appreciation
If you’re a homeowner looking to refinance, rising rates aren’t your only concern. Thanks to higher interest rates, it will become more expensive for homebuyers to borrow money, so fewer people will be able to afford to buy homes, says Casey Fleming, president of the Silicon Valley Chapter of the California Association of Mortgage Professionals.
Fewer buyers mean a larger inventory of homes to choose from, which slows down the appreciation of real estate value, Fleming explains. And lenders look at the value of your home when you apply to refinance your mortgage.
Specifically, in order to refinance, the magic number is an 80 percent loan-to-value ratio. But once the value appreciation of your home slows, your LTV ratio might become higher, which means more risk for the lender. So once rates increase, refinancing might be more difficult to get approved or will cost you more in terms of a higher interest rate.
Using Your Equity
While the rise of home values will likely slow down after October, you can reap the rewards of last year’s strong home appreciation by refinancing now.
In fact, your home may be worth more than you realize, says Fleming. “The opportunity to refinance may be more appealing today given the double-digit home price appreciation in many markets last year,” he says.
So how exactly can your home’s appreciation be an advantage in refinancing? As your home’s value goes up and your mortgage balance decreases with each payment, you have more equity in your home and your LTV ratio is lower.
The end result? You have more room to borrow against the home by refinancing to a higher mortgage amount than you owe at today’s low mortgage rates. Then you can pocket the difference.
For example, let’s say you owe $150,000 on a $300,000 house. You can refinance the mortgage for $200,000. Ideally, you’d get a lower rate on the $150,000 you still owe on your home and get a check for $50,000 to spend as you like – whether it’s to fund your child’s college education or pay for renovations.
Refinancing an ARM
If you have an adjustable rate mortgage (ARM), now’s the time to decide if you’ll stay in your home for more than five years. Payments on ARMs change as the interest rates do – if rates go up, your payment can too.
According to Koss, “If you have an adjustable rate mortgage and are planning to keep your current mortgage balance beyond five years, you should consider a longer term mortgage now before rates go up,” says Koss.
Some ARMs allow you to switch to a fixed rate mortgage at designated times. Your loan documents should include this information, as well as the formula used to calculate a new fixed loan mortgage rate, according to The Consumer Finance Protection Board’s Consumer Handbook on Adjustable Rate Mortgages.
If you did switch to a fixed rate mortgage, you may feel better knowing what your payment will be every month for the rest of the mortgage, according to The Federal Reserve Board’s publication “A Consumer’s Guide to Mortgage Refinancing.”
However, refinancing to a fixed rate isn’t the right option for everyone. For example, your new fixed rate may be higher than the advertised fixed rates, based on the formula of your loan, and some convertible ARMs also come with a conversion fee to switch from an adjustable to a fixed rate mortgage, says the guide.
So make sure you talk to your lender about what’s involved with switching from an ARM to a fixed rate mortgage before making the switch.

The Market keeps opening up!

Seems like every week, there is another new niche opening up in commercial lending.  This has huge ramifications for the economy overall-it is a very encouraging trend.  Although, we must be cautious that lending does not get too crazy.  For now, the opening up of products is a good thing.   It is a really exciting time in commercial lending.

Hot product of this week is:

PORTFOLIO FNMA TYPE APARTMENT LOAN

This loan has similar rates to FNMA apartment loans, (5 year fixed and 30 year amortizations in the 3’s with 10 year fixed and 30 year amortizations in the low 4’s), but without the stringent underwriting guidelines for liquidity and net worth. Closing times are much shorter, under 60 days.  It is like FNMA, there are no worries about population size which limits the better priced lenders a lot of times.  This product is the perfect mix of flexibility and awesome pricing!

More good news, our small balance lending platform is back.  We can now go down to $100,000 for commercial loans with great rates, usually in the 5’s.  We can also structure NO CLOSING COST LOANS for commercial properties in apartment deals (major metros only) and, regular commercial office, retail, light industrial, etc.  Call me today for more info on how this option works and, can save you thousands at the closing table.  It also makes refinancing a very attractive option.  You still pay up front for the appraisal, etc. (typically $2000-$5000) but, you get credited the closing costs back at or right after close.  This brings your effective cost of financing to almost zero. To find out more about this hot program, give me a call at 949-371-9947! No point loans are also available.

One thing I have begun to work on is refinancing some of our private money clients into lower rate loans.  With the opening up of what I call the “Alt-A” market, a lot of clients that might have been stuck on high interest private money loans can now refinance to the 5-8% range.  An Alt-A loan is a loan that misses the mark for conventional type financing, (either due to credit, quality of the asset, rent roll or vacancy issues, etc.), but still cash flows and makes sense.  I am surprised at how many private money loan clients can qualify for these better rates and, terms-a lot more than you would think.  If you have a private money commercial loan or you know someone who has one, give me a call today at 949-371-9947.  It costs nothing to run the deal by me and see if maybe I can save thousands!

Remember, our blanket residential loan that can blanket 5 or more residential properties including duplexes, condos, etc., into one loan.  This frees the investor up to buy more property.  The response to that product has been overwhelming!  To find out more about it, just give me a call at 949-371-9947. Hot products keep coming to the market I will keep you informed of these products as they come out. Meanwhile, remember me for all your commercial needs-one call does it all at 949-371-9947.

 

Bill Nugent

P.S. REMEMBER, WE PAY REFERRAL FEES!!!! Refer us to someone you know today at 949-371-9947 and ask for me, Bill Nugent. Be blessed!

The Blanket Investor Loan for Residential Properties is FINALLY HERE!

This is probably the most important loan to come out since the ’08 financial crash.  This loan allows investors in residential properties (Single family, duplex, condo, etc.) to combine them into one loan that is put in an LLC name and, can even be NON-RECOURSE! The program all but, disappeared by 2009 and, though some private money guys have tiptoed into this type of loan in the last year, this is the first time it is being offered with rates in the 5’s and, 6’s with 30 year amortizations.

What does this mean to the market and to you?

–   Investors can now pull cash out, consolidate and, clear out all their properties into one LLC.  This frees them up to get regular conventional FNMA financing for new purchases again (currently, few lenders will allow an investor to get this financing if they already have 4 FNMA loans.).  This can re-energize the purchase market.

–    People who have renovated homes can tap that equity up to 75% to invest in other wealth creation vehicles including buying more real estate, stocks, whatever they want.

–    It can also be used to purchase blocks of Real Estate (say a group of 8 homes).  There are no geographical limits; you can combine properties in different states.  Basically this is Wall Street money coming to the small investor and giving them access to grow and create more wealth.

Some basic product guidelines:

-The property is underwritten, not the borrower.  So you can show losses on your return and, still qualify as long as the properties cash flow at 1.2 times the new mortgage payment (known as DSCR).

-Must be 5 doors or more because this is a COMMERCIAL LOAN, the loan will be to a business entity.  It can be any combination of small apartment complexes, single family, condo, duplex, etc.  This product is for just residential properties, no commercial properties in this mix.

-Credit is important; a 680 credit score is generally required

-LTV must be 75% of appraised if you have owned the property a year or more.  For properties 3-11 months, we can go 90% of cost.

-Foreign Nationals are allowed at 50% but, if they include a US citizen in the mix, they can get 75% financing as well!

-Loan amounts are $500,000 minimum up to $50 Million or more if the portfolio is really that big.

-Full recourse is required up to $3 million but, non-recourse is available above $3 Million.

Since this is a commercial loan product Ican pay a referral fee.  Think of the opportunities:

Residential Brokers-you can market to realtors and the big investors in your town.

Realtors – can market to investors and consolidate properties so that investors can go buy more properties (hence more commissions).

Financial Planners and Accountants – can help clients by freeing up access to more cash to invest in stocks or other vehicles while putting possibly needed debt on residential properties that they could not get financed before-and earn extra revenue from referral fees….

So much more.  As with all of our commercial loans, it costs nothing to send a deal in to me and have me underwrite to see if I can approve the loan.

To get started, just give me a call at (949) 371-9947.  I will ask a few simple questions then request the few items I need to qualify the deal.  It is that simple!  Let’s get started now!

Have a great week!

 

Bill Nugent

(949) 371-9947

Year in Review

2013 is drawing to a close!  WOW!  What an interesting year. The economy got better in some areas, stocks rose to new highs and yet, there were signs of problems as well including persistently high unemployment and real inflation hitting everyone’s wallet.  The Government continued to show its inability to function effectively and, kicked the proverbial and dangerous “can” of fiscal responsibility to next year once again.  Despite all this, many of the businesses I spoke to and, we spoke to hundreds of small businesses as a company, were doing better than last year while none of them felt like they have “arrived” yet.  Working hard and, staying consistent in your marketing and sales efforts still is the best way to keep your business rolling and those who did, found 2013 to be a productive year.

We will close over 60 transactions for clients directly and more than a few of those are repeat clients.  In addition, we helped over 25 brokers/CDC and other referral clients get deals closed for friends, business partners and got them paid referral fees to boot!  In almost all cases, the borrowers had tried to get their deal done themselves and ended up with us… We got them done! Additionally, a lot of new money came into the market this year, we increased our funding sources and, the types of loans we are able to do by almost 50%!

In fact, a new Hedge Fund has approached us and they now have funding available for large construction projects and even construction for hotel deals with very competitive pricing. Keep that in mind if you have any clients or associates who need that type of financing or really any commercial financing….We close more loans than anyone.

Remember, we pay Referral Fees!

Bill Nugent

(949)371-9947

P.S.  If I don’t talk to you before year end…have a Happy New Year.

WE ARE STILL WORKING!

 

I would like to take a moment to assure our customers and lending partners that while much of the United States Government remains closed for business, we definitely are not.  We are hard at work and will continue to provide the most efficient and customer oriented service possible.

 

As you know, this is not the first time a temporary governmental shut-down has occurred.  We have been through this before and, so are well prepared to manage the process in a way that insures minimal disruption, closing and funding loans as quickly as possible.

 

Whether the current situation continues for days or weeks, please rest assured that we are committed to providing you with the exceptional service you have come to expect from VII Capital.  Should you have further questions or concerns, please contact Bill Nugent at 949-371-9947 or ViiCapital@gmail.com.

 

Best Regards,

 

Bill Nugent

More lending going on!

Every month or two I roll out an e-zine talking about the recent closings so you can get a feel for what is happening in the market, what is closing. Money is available- banks, hedge funds, life companies and, conduits have plenty of money. Getting approved remains challenging due to the regulatory environment. Banks are more afraid of government auditors and, making a mistake than turning a profit. They tend to underwrite and, condition incessantly. If you have the patience to deal with the process and, use someone experienced at navigating the process for you like myself, you can get money today. It is available. Below, you will find, a smattering of the deals closed in the last 30 days by our company. It has been very busy and, when we are busy, businesses are getting money so this is a positive for the economy.

If you or anyone you know needs to close a commercial loan, whether it is a start-up for a franchise or, a refinance of an office building at the current ridiculously low rates…give me a call at 949-371-9947. We can pay referral fees as well! -Have a profitable week and enjoy!-Bill

$4.85 Million Apartment Complex Purchase for a Foreign National at 75% LTV!!! 

Where: Chicago, IL

Type: This borrower from Australia who was not a US citizen needed to cash out his two smaller apartment complexes he owned in Chicago and purchase a much larger one with the money. We got him one loan against all 3 properties through a Conduit that got the job done at an amazing 75% LTV! We do have money for foreign nationals-both bridge money and super low interest rate conduit money. With the depth of financing we have available to us, we can often tailor the loan to the client’s specific needs! We have seen an influx of strong investor deals of late as people are rushing to take advantage of these extremely low rates-often into the 3’s for the best of deals!

$1.4 Million refinance and partner buy out of convenience store/gas station 

Where: Delaware

Type: The borrower had to consolidate debt and wanted to pay off a partner. The problem with the loan was the real property only appraised at $1.4 million.  They needed to get a loan at essentially 100% of real estate value for what many banks considered a cash out loan. So you had a high LTV cash out gas station loan-brutal! We got them about $150,000 more cash to pay off the partner than anywhere else they went and got them an excellent SBA rate. The borrower was very happy and said, “Thanks so much for all your help through the process! Now I can go back to doing what I do best, running my store”. If you need cash out or to buy out a partner, we have the resources to make it happen!

$1.5 Million Bridge loan for Business Start-up!

Where: Orlando, FL

Type: These borrowers, again foreign national, were trying to start a laser tag business in Orlando, FL. Although they put over a million dollars of their own money into the project, they couldn’t find anyone willing to loan them on a start-up business with no franchise or history. We leveraged one of their vacant hotels and the property itself and got them a bridge loan to get the money needed to get their vision off the ground. When others say no, we find a way to say yes. By the way, the bridge money was a fixed rate in the 7’s! VERY low for bridge money!

$205,000 Multi-store business only debt consolidation loan for Firehouse Subs franchisee

Where: Maryland

Type: This borrower owns 2 Firehouse Subs locations and had a couple of small loans he took out to open each store. By consolidating these debts and re-amortizing them, we were able to save him over $1500 a month!   At 10% profit margins, those savings are THE EQUIVALENT OF ADDING $15,000 A MONTH IN SALES!  Since we rolled my one point fee in, the borrower essentially increased sales $15K a month with no out of pocket cost. If you are a business owner or you know someone who is, you should give us a call. We can run the numbers for free and see if it makes sense and, usually have you pre-approved in 48 hours! In essence, you get the best and, most experienced advice in the world for free! Give me a call today!

$227,000 Dental Practice Expansion Loan

This loan came in on our 100% doctor program. Dentists, doctors and veterinarians can get up to 100% and, more to acquire other practices, expand, etc. Most of the players in that space had denied this client due to a host of other reasons.  We have a big edge on the competition because we have multiple sources for every type of deal. We can get deals done that the others can’t. In fact, over 90% of our closings are on loans that were denied by some bank or lender before coming to us.

We bring the resources of the entire country to a local marketplace and because of this, we can close more loans than anyone else in the country. If you or anyone you know is struggling to get financed on a commercial deal…give us a call!

Other closings last month included a church purchase and a private money loan to a technical school so they could meet funding requirements. We have our own private money up to $1.5 million and can meet the needs of clients who need to close in less than 30 days or have credit or other issues that keep them from conventional financing at this time.

If you know someone who needs financing, don’t keep me a secret out there. We charge nothing to review the deal and see if it qualifies and will give you sound advice on what is available. Call me today at 949-371-9947!

 

EARN EXTRA CASH! We can pay referral fees when you refer someone to us that ultimately closes-no licensing is necessary to earn a referral fee. Just give us the name and number and, I will personally follow up. I will discuss their situation over the phone and give them expert advice for free! If we can meet their need, we will have them an approval in writing within 48 hours with the most competitive quote from the best lender that will actually close their loan. If they choose to move forward with us, we will close the loan and pay you a referral fee. There is never any risk for the client, we only get paid if the loan closes. Free expert advice and, some extra cash to boot! Think of Bill Nugent and ViiCapital. for any business or commercial real estate finance needs-we close more deals than anyone in the country and our business is 100% referral! We are doing it right.

Give me a call today at 949-371-9947!  

 

 Bill Nugent  (949) 371-9947 

 

There is money to lend!

Every month or two I roll out an e-zine talking about the recent closings so you can get a feel for what is happening in the market, what is closing. The bad news is that the credit markets remain tight. The good news is that there is money to lend out there-you just need to know where to get it. These are a sampling of our closings in the last 2 weeks. We have had 5 closings in the last 2 weeks. That puts us on track to close 10 loans this month which will be a company best. When we are busy, businesses are getting money so this is a positive for the economy. To view more closings, go to my website at www.ViiCapital.com . If you or anyone you know needs to close a commercial loan, whether it is a start-up for a franchise or a refinance of an office building…give me a call at 949-371-9947. We can pay referral fees as well!

$3.85 Million refinance of triple net credit tenant loan

Where: South Florida

Type: This was a NNN lease to a credit tenant with 12 years left on the lease. The trick here was that the borrower is 80 and, wanted max cash flow for the next 5 years but did not want to leave the property to his children with a lot of debt and an expiring lease. Working with a boutique bank, we were able to craft a low interest loan with longer amortization to maximize his cash flow and, then during the final 5 years, do a sweep that sweeps all the profits straight to debt reduction. In this way, when the lease expired, the loan would be almost completely paid off and yet he got the cash flow he needed to keep living comfortably for the final few years of his life. With the depth of financing we have available to us, we can often tailor the loan to the clients’ specific needs! We have seen an influx of strong investor deals of late as people are rushing to take advantage of these extremely low rates-often into the 3’s for the best of deals!
$1.8 Million purchase of a Chinese Buffet -land, building and Real Estate

Where: Orlando, FL
Type: A successful Chinese buffet operator was looking to expand and was buying out a competitor. What made this deal tricky was the financials of the business being acquired did not show a lot of the cash they actually make and the borrower’s funds for closing were coming from overseas and we had seasoning issues. Although, it took a little longer due to these issues, we were able to overcome them and get them closed. Although we do a lot of franchise deals, existing restaurants can get money for expansion-we have the sources and resources to do it.
$726,000 Practice Acquisition-Business Only!

Where: Texas
Type: This loan came in on our 100% doctor program. Doctors can get up to 100% and, more to acquire other practices, expand, etc. Most of the players in that space had denied this client due to personal debt ratios and, a host of other reasons. We have a big edge on the competition because we have MULTIPLE sources for every type of deal. We can get deals done that the others can’t. In fact, over 90% of our closings are on loans that were denied by some bank or lender before coming to us. We bring the resources of the entire country to a local marketplace and because of this; we can close more loans than anyone else in the country. If you or anyone you know is struggling to get financed on a commercial deal…give us a call!
$317,000 Private Money Refinance of Self-storage Building

Where: North Carolina
Type: Borrower had a loan coming due and wanted to go SBA (Self-storage qualifies for SBA financing), but because he defaulted on an SBA loan 5 years prior, he was unable to get one. The only way to get him financed with SBA would be to pay off the old SBA debt so the government lost no money on the loan and then he would be eligible again. So, we refinanced his property on our private money fund to pay off the ballooning note and the $53,000 owed on the defaulted SBA loan. With this debt cleared, he can look to refinance out of our loan into an SBA loan in 6 months. Our private money fund is the perfect fund to fix short term problems to provide better long term solutions. We are fast, we have extremely low due diligence and even let them pay for the appraisal directly. We have in-house underwriter and credit committee. It costs nothing to send the deal in. If we like it and, credit committee signs off, we kick out a commitment letter. No letters of interest with large upfront fees, just honest answers and quick closings. Give us a call today for any of your commercial private money needs, below $1 million in loan size!
$245,000 START-UP of a Pharmacy

Where: Chicago, IL
Type: Getting money for a start up business when there is no franchise involved is very tough. This borrower had been denied by at least 5 banks. The loan size was just too small for many of our national lenders. In the end, we found the one local bank that was willing to do this loan for a start-up pharmacy. The problem facing most borrowers is that they have no idea which local banks are really lending. Many local banks are very constricted, regulated, on what they can do right now due to capital reserve requirements. The guy with the good deal has a tough time getting financed because the big five (5) banks only want the strongest of deals. This deal was a good deal, it just needed to be brought to the right bank. We know who is lending, we have access to that info and with branches around the country, we are constantly talking and finding the sources-both national and local-that can get the deals done. When you make that call to me, you are tapping the resources of the entire country. What do you have to lose? We review any deal for free, underwrite it completely, place it and get the best quote ALL FOR FREE. Only then will we issue our term sheet. Last year, we had over a 90% pull through on our term sheets! 90%! No one else is even close. Give us a call for any commercial loan and see the difference that access to capital can make in your business or investments.
 There are many more stories and successful closings to share, feel free to check just some of them out at www.ViiCapital.com . If you know someone who needs financing, don’t keep me a secret out there. We charge nothing to review the deal, see if it qualifies and, will give you sound advice on what is available. Call me today at 949-499-4668!
Bill Nugent                                           

Are Banks Really Loosening Their Lending Guidelines?

Listen to the media spin the tale and, you would think that banks have loosened their guidelines and, businesses are getting money easily again.  If you look at the numbers, like the SBA’s statistics on Application approvals vs. denials, you will see that despite healthier banks, lending guidelines have NOT loosened.  What gives?

It is true that banks are the healthiest they have been in years.   More banks are lending now than a year ago. Businesses are generally a little healthier than a year ago so that also can help improve the approval percentages.   Nearly 80% of all applicants still are getting denied!  To understand why, you need to understand that banks have an entirely new underwriting criterion to worry about called Regulatory Risk.  What is “regulatory risk” as it applies to banks and what bearing does it have on loan approval?  Let me explain.

Traditionally, when a bank underwrites a loan they look at the risk in the transaction, the property, the cash flow, the borrower credit, cash reserves, etc.  When all these factors are weighed, if the loan looks like a safe loan, the bank will move forward with an approval.  That is traditional underwriting risk.  It is normal and it is healthy.  When banks get too loose and, don’t underwrite prudently, that is when they can get into trouble.   There is a new risk that banks must deal with called regulatory risk.  What this is, in a nutshell, is the risk of the loan being called risky by the regulators during their audit.  If the government regulators determine that a loan looks risky, they will make the bank set up loss reserves equal to the potential loss on the deal.  So a business only loan with no collateral for $200,000 that is deemed risky by a regulator could force the bank to have to tie up an extra $200K in loss reserves.  In other words, it could cost the bank $400,000 in capital to loan the $200K to that business only loan.  That is WAY too much risk for a bank-any bank.  That is why you see banks key in so much on collateral now; it helps offset the potential loss reserve requirement.  If the same loan had $200,000 of discounted real estate collateral, even if the regulator felt the loan was risky, there would be very little loss reserves needed to be set aside since most of the losses could be offset by liquidating collateral.

The Lehman crash and financial meltdown led to a large increase in government regulations of banks and MANY OF THOSE PROVISIONS STILL ARE GETTING PHASED IN.  That means that this year and next, the regulations will continue to TIGHTEN, not loosen.  With this fact on the horizon, it is easy to see that banks will continue to lend with handcuffs on for at least a couple of more years.  So is all lost?  Is there any good news in this?

The answer is YES, there is plenty of good news. First, good loans can still get done because banks are healthy and good loans are still getting done.  The better news is the options outside of banks are VERY strong, probably the strongest they have been since 2007.  Private money funds have trillions of dollars to deploy.  The conduits and life companies have plenty of money and aggressively want to deploy it.  I am getting a foreign national apartment deal done at 75% LTV and the rate is going to be fixed in the 3’s!  WOW!  The non-bank sources are really strong, the banks are healthy and are lending, albeit it with caution.  Rates are ridiculously low.  And businesses in general are doing a little better.  Put it all together and it adds up to a good time to get financing for commercial properties or for a loan for a business to expand or purchase.  If you or anyone you know needs financing for commercial loans or for a business, give me a call at 949-371-9947.  We close more loans than anyone, and we have the sources and resources to help you get the money you need.  Give me a call today!

Bill Nugent

P.S.  Did you know we have our own private money fund?  We specialize in deals that need to close quickly for a variety of reasons.  Note discounts, purchases out of foreclosure or, just for when someone needs to close quickly.  We are a GREAT resource up to $1.5 million.  We have plenty of capital to deploy right now and are actively lending on all commercial asset classes-we even do golf courses and marinas!  Give me a call today to run your next private money deal by us.  Up to $1.5 million we can do internally, above that we can partner with lender partners that are very strong and operate with the same speed.  So give me a call today at 949-371-9947.  We pay referral fees as well!!!!

What is Closing Now in 2013!

As we open 2013, I can’t help but go back and see how 2012 played out.  2012 was a growth year in commercial mortgages with SBA lending and private money lending really strengthening.  Additionally, I saw a lot of money flowing in the conduit markets and life companies for apartments, grocery anchored shopping centers, Class A office and, retail in major markets.  There IS money available in commercial, a lot of it, for the right businesses and assets.  I see that momentum carrying into 2013 and I expect it to be another up year.  After the deep crash in commercial in 2009, each year since has seen continued strengthening.  We are still way below the highs we saw in 06-07 and I don’t believe we will get back there anytime soon.  But year over year growth is a good thing and I look forward to another up year in 2013.  Some of the loans we closed last month…..

$6.25 Million Car Wash purchase in FL.  This was two car washes sold together. One in Orlando and one in Tampa.  The car washes were very strong and so was the borrower but he only had 15% to put into the transaction.  Now 15% was still $1 million but the only way to get close to the 85% needed was SBA.  We had to break the transaction into 2 parts, with 2 different lenders.  On one we did it on an SBA 504 loan and on the other we did an SBA 7A loan.  The combination yielded about $5.3 million in loans.  Just enough to make it work.

$1.8 million Grocery anchored retail purchase.  This one had to go private money because it had under 75% occupancy.  Strong buyer who owns many other centers came to us for financing because conventional sources would not finance the center with the low occupancy.  We did it with our own in house financing at 65% of appraised value but not to exceed 80% of purchase price.  We closed the deal quickly and once he gets that occupancy up, this will be an easy refinance out of the private money loan.

Speaking of closing fast, we had a client put a bid on a property at auction.  Once he got the bid, he had 20 days to close.  We jumped on it with our own private money fund giving him 80% of purchase price as long as it appraised to keep us at 65%.  He bought the property for $179,000-it appraised at $375,000.  We closed it in the 20 days and the buyer gets to keep all that equity.  It was a vacant car wash that he plans to re-open and then refinance out our loan.  Once it is open and operating, the value will go up even more.  Talk about expanding your net worth!

We also did a $3.1 million cash out loan for Pharmaceutical company that was exporting a new drug.  We collateralized it against RE and equipment and because of the exporting, got a 90% SBA guarantee.  The bank is secure and the buyer got millions to expand-HUGE!

There were other deals like a refinance of a private money loan, a couple of 100% financing deals for doctors, etc.  But the overall picture is this:  Money is available for good deals.  If the deal works, if it makes sense, and has the right pieces, it can get funded.  WE FILL THAT GAP by putting the pieces together and putting it in front of the right lender that is likely to do the deal.  That is our expertise-that is our role in the market.  If you have a deal you need financed, or you know anyone who does, give us a call.  We can pay referral fees, but most importantly, we charge nothing to review and tell you what options are available and we only get paid if we close.  We are the only NO RISK option in commercial lending.

Give me a call today at 949-371-9947.  Talk to you soon!

Bill

P.S.  Remember, WE HAVE MONEY AVAILABLE FOR GOOD DEALS.  We have packaging and execution expertise and can get the deals funded.  NO ONE CLOSES MORE COMMERCIAL LOANS!  We charge nothing to review and only get paid if we close.  The next time you need commercial financing, or if you know anyone who does, give me a call at 949-371-9947.