All Forum Posts by: Brock Freeman

If one is really looking at lower risk, capital preservation, then one might want to look lower on the capital stack. Equity will always be more risk than debt. Funds backed by first lien debt on cash flowing commercial Real Estate at lower LTVs fits that. There are a number of high yield debt funds that would work. Verivest.com is a good place to filter down on those.

We know a lender who will consider 80% LTV with no DSCR. But the rate will be hard money like. Just use it as bridge till you are able to do a rate and term refi in less than a year.

Get yourself a good quality commercial loan broker. A good one is worth their weight in gold and will help you get the best program for your situation.

I am not a loan broker, but if you message me I’d be happy to make a couple of recommendations.

@Luke Henderson I'm sorry. I am not an SBA expert, just a private lender. There are SBA brokers around, and maybe even on BP who could answer that question. I do know that many times sellers don't want to wait or extend the PSA to accommodate the longer times an SBA can take; that is where we have stepped in to provide the bridge financing.

@Mark Zajaczkowski you can message me directly on your hard money lender question (and an SBA broker). As for "easier" re the SBA loan, my understanding is that it's more about the timing. However, a good broker who is experienced at SBA loans can help with this. 

You can also look at doing a bridge or hard money loan to acquire the property. Then get an SBA loan to take out that bridge for long-term financing. 

It would help if you were more specific about the situation of the loan you are seeking. Private lenders specialize in different types of properties and situations.

Ask your favorite loan broker about Kirkland Capital Group's private portfolio micro-balance CRE bridge loan program.

• Loan Amounts up to $1 million and 80% LTV — purchase and cash-out
• 1 to 12 months interest only, extensions available
• Multifamily 5+ units, Mixed-Use, Industrial, Office, Retail
• Cannabis related OK; motel conversions OK
• Seller contributions OK; no min DSCR
• Rapid closing, BPO valuation only

Alexander, what is your approach or recommendation for multifamily apartments? I can see adding EV charging as part of a value-add play in turning Class C multifamily to Class B. I would assume lack of EV charging is an obstacle for renters to consider buying EVs. Anyone done any modeling on the NOI bump per unit to add EV charging?

Investment Info:

Office Space hard money loan investment in Pontiac.

Cash invested: $600,000

12-month, I/O, Cash-out loan for renovation.

What made you interested in investing in this type of deal?

Medical office was virtually vacant, being mismanaged by the previous owner, then quit-claimed to current borrower after a bad business deal. However, location was across the street from a hospital and borrower was from the medical industry so post renovation lease up should go quickly.

How did you find this deal and how did you negotiate it?

Brought to us by Malcolm Turner at Castle Commercial Capital.

How did you finance this deal?

Funded off our Kirkland Income Fund.

How did you add value to the deal?

Due to the quit claim from the last owner we worked closely with borrower and loan broker to overcome and clear up some serious title issues.

What was the outcome?

Successfully funded.

Lessons learned? Challenges?

When you buy a property for cash, spend the extra money to pay for title insurance. It will help one avoid the title issues we saw on this deal.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Malcolm Turner at Castle Commercial Capital: a standup, reliable commercial broker in Michigan.

Was able to grab a recording of this recent presentation and put it up on YouTube. Super helpful for anyone looking to use retirement (IRA/401k) money for real estate investment. It was hosted by Seattle's Alternative Investment Association (CAIA).

There are 33 trillion dollars in retirement plans. Whether you are an advisor helping clients or an individual investor, watch this to learn how to unlock the power of retirement plan capital for investing in alternative investments. John Paul Ruiz of The Entrust Group introduces the various platforms available, rules and regulations, and how to get started in a broader utilization of your retirement plan assets.

Watch the video recording.