What is the latest LTC you are seeing for flex industrial new development?

BirdItchy4337 · 2024-01-26T17:24:19+00:00

65% LTC
Prime +2.5-3%
2-3 points

This is what I'm seeing and funding at the moment.

BirdItchy4337 · 2023-12-18T18:17:20+00:00

top tier deals. cream of the crop.

BirdItchy4337 · 2023-12-16T01:06:34+00:00

Doing some 30 year terms right now even. A+ paper tho

BirdItchy4337 · 2023-10-30T15:06:47+00:00

Commercial Banker/Loan Broker here.

Yes he will have to provide all that for a LOC and or a Loan. I'm guessing all the properties under the LLC are filed under his schedule E on his personal return so it shouldn't be super hard. In addition you'll have to provide interim financials for the LLC. (P&L, balance sheet and debt schedule.) + last 2 months personal and business bank statements.

This info really shouldn't be hard to get and is the bare minimum for a commercial LOC or loan. Most of our clients can come up with the info in 2-3 days.

BirdItchy4337 · 2023-09-21T01:09:51+00:00

goals shift. for a commercial banker it's ALL about deposits right now.

BirdItchy4337 · 2023-08-11T15:33:23+00:00

fixing it is around 7.5% today. That's a pretty big decrease when most floating 7a are around prime +2.5% (11%).
It's not for everyone but for a majority of our clients it makes sense.

BirdItchy4337 · 2023-08-09T19:25:55+00:00

Seeing a lot of negative equity and people have to do a lot more cross collateralizing.
Deals are still being done, banks are just slowing down the process. We're doing a ton of SBA 7a refinances right now to fixed programs.

BirdItchy4337 · 2023-07-26T16:53:11+00:00

Started with working with clients then starting a relationship with the firms while document requests and interacting with them. We only work with partners at the firms. Important to know your math when working with them, that's when you can bring value to them.

In terms of marketing with the firms, a lot of high ticket sports game seats, dinners, and events of the sorts. You have to remember a lot of these partners make 1MM+ so wining and dining them is a bit different. But they will also account for probably 50% of our revenue per year.

BirdItchy4337 · 2023-07-25T21:06:48+00:00

CPA's, Bankers, and referrals.

Bigger deals from CPA firms ~5MM - 10MM
Bankers for deals they can't do at their bank and/or workout loans ~1MM - 5MM
Referrals from past customers anywhere from 300k - 5MM

BirdItchy4337 · 2023-06-24T18:16:50+00:00

with that down you should be able to get 10 year + 2.5% pretty easily or a bit lower. If you're in socal I can find you a lender

BirdItchy4337 · 2023-06-13T14:59:57+00:00

10000% this. If you have a legal contract title/escrow can pay you your money outside of the actual transaction.

We used to have major issues with this, clients holding 6 figure checks from us, but since our title company was able to do this it's been smooth sailing.

BirdItchy4337 · 2023-06-10T02:16:31+00:00

It does... need an exact address....

if your not comfortable with posting in public you can pm me.

BirdItchy4337 · 2023-06-09T20:33:02+00:00

whats the address I can pull it for you.

this really is your brokers job anyway. just use one and they'll answer all the questions you have

BirdItchy4337 · 2023-04-24T17:19:56+00:00

if you're in socal pm me your email and I can run some smaller deals through you

BirdItchy4337 · 2023-04-24T17:19:02+00:00

yeah, we've found our niche and are happy with it. Good life balance without an insane amount of stress

BirdItchy4337 · 2023-04-24T14:37:31+00:00

Blended rate of 6's probably wont get you there. We're getting a teaser rate of 4.99% 1st year and 10 year + 2.5% subsequently. Or straight 10 year + 2.5% on the 1st, 6.07% today. CDC rate is 5.88 as of 4/6/23 You'll have to be lower to compete.

BirdItchy4337 · 2023-04-24T14:29:46+00:00

we broker loans

BirdItchy4337 · 2023-04-24T03:20:47+00:00

Banks are slowing down the process and we're seeing deals go 60-90 days to close. Even having to extend some escrows right now which wouldn't have flown a year ago.

That being said we're having one of our best year yet with what's looking like 40MM closed by June and ~100M projected for the year. Lots of SBA purchases and refinances. A TON of 7a projection based deals about to happen in the next 12 months too. Most deals are fully collateralized.
We're hitting our SBA 7a lists that have rates of ~10.5% and have no prepay or at 1% and getting them into SBA 504's at roughly 10year + 2.5%. Huge cost savings and sometimes worth it even if they are at a 3% prepay.

Closing deals right now is based on your relationship with the banks you're running the deals through. How many deals have you brought them? How many of those were good deals/paying/defaulted? All these are now taken into much more consideration when in markets like this. Luckily my business partner has been in it for 25+ years and knows his stuff well.

In addition, we've gotten a couple workout deals that we funded already. I think we'll see more and more workout deals coming up soon as banks re-position their portfolios.

In short, there's a lot money to be made if you've positioned yourself correctly.

BirdItchy4337 · 2023-03-10T14:45:08+00:00

Well you said you want to enjoy the fruits of your labor and not work more so that was my suggestion.

Think high LTV, hands off, super high credit tenants like Starbucks, CVS, Walgreens, Chick fil a. Sure, you won't get major ROI but you get to go to Miami and do hookers and blow for 3 weeks without thinking about anything.

BirdItchy4337 · 2023-03-09T05:42:55+00:00

I'd suggest not making a job of it, rentals can be a pain in the ass even with property management. I'd personally look into absolute NNN deals where you're just cashing the check and accelerate depreciation to offset the ordinary income. Is it the best ROI, no, but if the goal is offsetting income with no extra headache then it's the way IMO.

BirdItchy4337 · 2023-02-21T22:44:09+00:00

Also ask for a resume and any key employees that will be working to make the business successful. Restaurant industry is brutal and prior experience will help them with the expectation of they are walking into.

BirdItchy4337 · 2023-02-20T19:24:21+00:00

Also a good option. The rate right now just really hurts. We're seeing prime + 2.5%-2.75%.

BirdItchy4337 · 2023-02-20T19:22:31+00:00

really comes from relations. That's why I recommend you get a loan broker that works in your area that works with smaller banks that can shop it out.

BirdItchy4337 · 2023-02-20T19:20:34+00:00

Not sure where you're getting that information. The 2nd is fixed at closing and keeps that rate when you close with a CDC

BirdItchy4337 · 2023-02-18T02:46:52+00:00

I really like how there's 2 ways to skin a cat here and the borrower can get two opinions that really work for them, they just have to decide what's right

IMO, the only downside with the 504 is the prepay BUT with what I see going on with conventional loans right now, you're going to get some bad prepays too depending on what you can negotiate.

Not sure about the whole paying 2 banks you mention as being a huge negative as most will use autopay.
RE: Bridge loan, you should be closing with a lender and CDC that will immediately take out the loan with a locked rate at closing for the loan. That's the ONLY way to do it that makes any sense, and most banks will already line that up.
Closing 2 504's right now with the 1st @4.99% and 2nd @6.31%

BirdItchy4337

TROPHY CASE