The lucky 100 people who were able to get in on last night’s Commercial Deal Funding Training call before our lines filled up got quite an earful!
Learn What We Do, Not Just What We Know!
Jayme had her financing expert, Greg Woodliff, on the line, and he had some great advice to share with everyone who was on the call.
By the way, Jayme is twisting Greg’s arm to be one of the high level commercial experts who present at her upcoming Commercial Workshop!
Does This Guy Know His Stuff Or What?
Greg has a degree in finance, worked as an investment banker at major firm, Kidder-Peabody and was portfolio manager for a high net worth client group where you had to have a minimum of $3 million just to get access to him.
For more than 20 years now, he’s been kicking butt in commercial real estate, working with institutional investors in obtaining financing for their clients’ real estate portfolios, performing detailed financial analysis on various types of income properties and preparing loan packages for submission to loan committees for loan approval.
Since 1996 he has had his own commercial mortgage brokerage firm specializing in placing debt and equity for his clients. Greg has been involved in excess of $1 Billion in real estate transactions.
We’re Doing Deals And You Get To Look Over Our Shoulder
So, do you think Greg is out there actually DOING deals? Do you think he had some juicy information to share with us?
You bet he did! That’s the point of these calls, and Jayme’s Commercial Property and Paper Workshop – to teach you the real action steps you need to take to succeed in commercial real estate, taught by people who are out there really doing real deals, not just on the stage talking about other people’s deals or telling you stories about hypothetical deals between Sally Seller and Bob Buyer!
What Are Your Commercial Property and Paper Funding Options?
Greg talked about different funding options for commercial property and paper, including:
- Construction
- Mini-Perm
- Permanent
- Bridge
- Mezzanine
- Land Acquisition, and
- Development
We review each of these options in great detail during the 4 Day Commercial Workshop. Understanding what these options are and when to pursue which ones for your particular deal is a critical first step to getting your deals funding.
That’s why we dedicate so much time to each option in the workshop. If you don’t know the right place to start when you go looking for funding, you can end up just banging your head against a wall. It won’t matter how good your deal is, because you’ll be talking oranges when you should be talking apples to your potential funding sources.
Where To Look For Funding
Gret mentioned several places you can look to find funding for your commercial deals, including:
- Commercial Banks
- Credit Unions
- Savings Banks
- Private Investors
- Hard Money Lenders
- Pension Funds
- Life Insurance Companies
- Real Estate Investment Trusts (REITs)
- Hedge Funds
- HUD
- Fannie Mae and
- Freddie Mac
Now, you may not have thought of some of these sources of funding for your commercial deals – if not, don’t worry, because most people don’t even know half of these sources. Here’s the trick though, knowing is just 10% of the battle.
The real key once you realize these sources exist, is knowing exactly how to approach them, the little quirks of each source, what you MUST have in your package to even get past the initial gatekeepers and just how it has to be presented.
Jayme and her team are planning to dedicate more than a full day of the Commercial Workshop to these little details to ensure your deals have the best possible chances of getting funded.
What You Need To Know To Talk With The Commercial Real Estate Big Boys
You need to be familiar with quite a few terms that are used over and over again in the industry, including:
- Capital Stack (debt, equity, mezz)
- LTV/LTC – Loan to Value and Loan to Cost
- DSCR – Debt Service Coverage Ratio
- Loan Constant
- Loan Sizing
- Stress Test
- Basis Points
- BPS and
- LIBOR – London Interbank Rate
We covered these in the call and Jayme and her teal go over them in more detail at the workshop.
Keys To Success
Here are some of the keys to success when trying to find funding for your commercial real property and paper deals:
- Look in your own market and know your market inside out. You’d be surprised how many deals can be found in your own backyard.
- Deal directly with the borrower or buyer. Never have more than three people involved in any one transaction. Avoid the daisy chain of brokers situation.
- Present yourself to the client in a manner that gives the appearance that you know what you are doing. Act like you are an experienced pro – this is one of the key things you will learn at the Commercial Workshop.
- Hit singles to start, work on smaller deals and get your feet wet – Jayme teaches you how in the Commercial Workshop – better to start out with a smaller deal than work on a $100 million deal right off that bat!
How To Build The Ultimate Commercial Property Funding Package
There are many steps in each section to createa package that has the best possible chance of successful funding.
Over $1 billion of deals has taught Greg the secrets of just what to say when and how in each section, and each of these details is revealed in great depth at the Commercial Workshop.
Here’s a highlighting of the keys to the ultimate commercial funding package:
- Executive Summary – Overview and recap of pertinent information about the deal.
- Underwriting – projected operating statement based on pro forma R&E, Cap rates, EV, total cost, LTC/LTV, loan parameters and DSC ratio.
- Rent Analysis – sets out the Unit Mix and projected rents.
- Historical Analysis – sets out assumtions for OS, calculates PSF R&C.
- Source & Use of Funds – Shows ALP and how the money will be spent as well as shortage generated equity requirements.
Don’t worry if you don’t understand all those jargon filled acronyms, each one and the detailed explanatoin of how to use them to your advantage when creating the ultimate funding package, will be explained at the Commercial Workshop.
Lender Financing Checklist
Here’s a checklist of items that you will need to have in place before you go to your potential lender looking for funding for your commercial deals:
- Formal Loan Application
- Copies of executed sales contract and other agreements
- Personal financial statements of buyers
- Income tax returns for 2 – 3 years
- Borrower’s resume
- Property current and historical operating statements for 2 years
- Rent roll
- Copies of leases
- Copies of vendor or maintenance agreements
- Property insurance
Conclusion
As you can see, we covered a lot of ground in the call, and that was only a small part of all the stuff we go over and that you need to know in the Commercial Workshop.
The lowest Early Bird Pricing for the Commercial Workshop has already expired, but it’s still not too late to save a full 50% on the workshop if you sign up right now.
To sign up call us today at 800 614 – 8040!
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