All Forum Posts by: Christopher Perez

Hi Charles.  I grew up in Drexel Hill, although many years ago, but still have many friends and parents of friends that still live there.  It a multi generational town where kids grow up and move down the street from their parents.  Great private and catholic schools.  Its Norman Rockwell type of suburb.  On the lending side, grabbing yourself a good full service brokerage is your best bet.  You want multiple options and to have someone quarterbacking your transaction from start to finish.  Knowing a lender is 20% of a transaction to a close once appraisal and title ordered.  I highly recommend www.11capitalfinance.com.  3 minute loan application with multiple loan offers in under 24hrs.  No one is better.  Although you have experience, your time is money.  Best of luck!  CP  

Hi Joshua. Only 20-25% of the population for investment properties qualify for a conventional bank type loan and it is no big deal. The secondary market, non-traditional lenders, is huge if you know where the money is. The rates and terms for many are still fairly decent allowing you to achieve the ROI from your duplex purchase. Best advice, grab a good full service broker especially on your first transaction. Let a trained expert help you as knowing a lender is only 20% of closing a loan once an appraisal and title is ordered. You need someone to quarterback on your behalf or the loan side of things can be a very painful and time consuming experience once you get down into it. Highly recommend www.11capitalfinance.com.  3 minute application with multiple offers in under 24hrs hours.  

Best of luck and here is too seeing you build your real estate empire!  Cheers!  CP

Here is the Real Deal

Bridge and Hard Money Loans. This area of finance is literally booming and fortunes are being made since the current economic slowdown.

Amount of loan: $10,140,000 Commission earned by broker: 2% ($202,800) Total time to close: 5 days

Church Real Estate Financing. Amount of loan: $4,000,000 Commission earned by broker: 3% ($120,000) Total time to close: 65 Days

CMBS Commercial Real Estate Loans. These loans offer quick closing times and attractive rates and terms as outlines in the scenario below. Amount of loan: $5,500,000 Commission earned by broker: 1% of transaction or $55,000 Total time to close: 50 days from signed term sheet

Commercial Real Estate Development Financing. These projects typically take longer to close, but when they do the commission one can earn is truly rewarding. Amount of capital provided: $27,000,000 Commission earned by broker: 1% of transaction or $270,000 Total time to close: 4 months.

Large Project Financing. This is an example where the broker earned more money than most people earn in one year. Amount of loan: $10,000,000 Commission earned by broker: 1% ($100,000) Total time to close: 2 months

Mezzanine Financing Amount of loan: $4,000,000 Commission earned by broker: 1.5% or $60,000 Total time to close: 45 days

SBA Lending. You will have some of the quickest lenders in the industry to process SBA loans. Amount of loan: $550,000 Commission earned by broker: 2% ($11,000) Total time to close: 1 month

These loans examples are the high level commissions, but if you would like the details on the transactions please email [email protected].

The size of the market is incredible. Total outstanding CRE debt at the end of 2015 stood at $2.72 trillion and is projected to reach $2.8 trillion by the end of 2016 according to the Mortgage Bankers Association ("MBA"). It is projected that more than $300 billion of CMBS loans will come due by 2018. Therefore, total refinancing activity over the next two years could be $750 billion or more. New CMBS activity is estimated to be between $75 billion and $100 billion for 2017.

NON CRE LENDING 11 Capital Finance specialty is CRE lending, but we include these examples to show you how you can diversify your finance business.

Business Acquisition Financing Amount of loan: $665,000 Commission earned by broker: 4% ($26,600) Total time to close: 14 days

Business and Industry Guaranteed Loans (B&I) Amount of loan: $6,000,000 Commission earned by broker: 1% ($60,000) Total time to close: 2 months

Consumer Financing Programs This is another example of a financial product that yields terrific residual income. Amount of loan: $5,000 per security system sold. Commission earned by broker: 1% of each item sold. (So the broker gets $50.00 with every system sold and financed. They sell about 10 systems a month using the broker’s finance company which yields him $500 a month. That is just with one vendor. He now has several in a 100 mile radius under this program. Total time to close: 1 week to set up business with lender.

Contract Financing The record commission on this product is $311,593 on a single deal with the average being approximately $100,000 per deal. This is a great niche area to focus on and yields a great commission. Amount of loan: $4,000,000 Commission earned by broker: $80,000 Total time to close: 3 months

Corporate Mergers and Acquisition Financing Amount of loan: $45,000,000 Commission earned by broker: 1% ($450,000) Total time to close: 5 months

Distressed Note Acquisitions Amount of loan: $4,900,000 Commission earned by broker: $65,500.00 Total time to close: 2 weeks

Equipment Leasing Average deals per month broker receives: 6 deals per month. Average commission broker earns on each transaction: $5,000 Total monthly revenue: $30,000

Energy & Commodity Finance There are not many specialized lenders that do this type of financing, but you will have access to one of the best. Amount of loan: $5,000,000 Commission earned by broker: 1% ($50,000) Total time to close: 3 weeks

Equity Financing Amount of loan: $1,800,000 Commission earned by broker: 2% ($36,000) Total time to close: 65 days

Franchise Financing Here is a great example of a broker who financed a client and got a lifetime of business. Amount of loan: $220,000 Commission earned by broker: 3% ($6,600) Currently gets 3 deals a month from the franchise concept. Total time to close: 3 weeks.

Inventory Financing Amount of loan: $10,000,000 Commission earned by broker: 1% ($10,000) Plus earned Residual Income for the life of the account. ($800.00 a month) Total time to close: 1 month

Joint Venture Capital These days, there are more and more clients who have projects that are turning to JV financing to get their project funded. Amount of loan: $10,000,000 Commission earned by broker: 1.5% ($150,000) Total time to close: 65 days

Medical Loans This is another great niche to profit from. Amount of loan: $75,000 Commission earned by broker: 8% ($6000) Total time to close: 5 days

Medical Receivables Financing Amount of loan: $750,000 Commission earned by broker: 2% ($15,000) / and then lender pays the broker 10% of the fees collected by lender. Total fees are $5000 a month collected so broker gets $500 a month for the life of the account. Total time to close: 14 days

Merchant Cash Advance Most businesses don’t even know that this type of financing exists. Amount of loan: $135,000 Commission earned by broker: 5% one time fee ($6,750) plus an on-going monthly commission from lender. ($300 per month for the life of the account) Total time to close: 5 days

Mobilization Financing Amount of loan: $600,000 Commission earned by broker: $24,000 Total time to close: 7 days

Purchase Order Financing Amount of loan: $3,200,000 Commission earned by broker: 1% ($32,000) Total time to close: 14 days

Sale-Leaseback Financing Some of your lenders will pay you up to 15% commissions for this type of financing. Amount of loan: $75,000 Commission earned by broker: $11,250 Total time to close: 3 days

Structured Settlement and Annuity Financing Amount of capital provided: $300,000 Commission earned by broker: $9,175 Total time to close: 1.5 weeks

Unsecured Business Lines of Credit Amount of loan: $130,000 Commission earned by broker: $1,600 Total time to close: 12 days

Venture Capital Financing Amount of loan: $6,000,000 Commission earned by broker: 2% ($120,000) Total time to close: 2 months

Used Aircraft Financing Here is an example of a graduate who penetrated a niche market with this product. Amount of loan: $400,000, $600,000 and $225,000 Commission earned by broker: $38,000 Total time to close: a little over a month

Ability to Cross Sell Products

The important thing to realize is that you will have the ability to cross sell multiple financing options for any business that you are dealing with, every time. This is a great advantage that our IAP have as you can get two or three deals from one business.

Example: A broker has a manufacturing company that originally came to him for an Accounts Receivables loan. After talking to the client and learning about their business needs, the broker discovered that they needed a new forklift for their operation. The broker quoted them a great rate and provided them with an equipment lease.

Amount of loan: $550,000 for the Accounts Receivable deal and $65,000 for the forklift.

*Commission earned by broker: $11,000 on A/R deal and $5,200 on the equipment lease.

Total time to close: 13 days

Summary: As you can clearly see from the real examples provided by our lenders, there is an unlimited amount of money to be made in this industry. 

WANT IN?  

https://www.11capitalfinanceiap.com/

Best advice.  Engage a good brokerage.  This is very important.  You probably don't do your own legal, accounting, plumbing, etc. so why on maybe the largest transactions of your life ever try to do it yourself.  Check out www.11capitalfinance.com Product sheet on their web site plus 3 minute application and will have multiple loan offers in under 24hrs.  Then you have real offers to make the best decisions.  Best of luck!  CP 

The earlier comment "skin in the game" is where the market lies today especially after the mortgage collapse of 08.  Outside of SBA loans, highest LTVs at 90%, lenders want to see 20-30% of total project costs to lend.  Some lenders will allow small seller assist, but typically no more than 5%.  When you see advertising for 100% financing you need to read the small print where it says must be liquid cash on hand for over $1 million dollars, have an 800 FICO score, and done over 100+ deals.  If it sounds too good to be true...the deal today is you have to have cash to play or you could just wholesale deals.  Chris P

Loan Amounts $100k - $20 Million Example Rate rate ranges, LTV, DSCR, Term and Amortization

Owner-User Properties: 4.5% - 8.875% 90% 1.25 3, 5, 7, 10, 15, 25 15, 20, 25 

Apartment / Multifamily: 3.25% - 7.5% 85% 1.15 3, 5, 7, 10, 15, 35 25, 30, 35 

Healthcare / Senior Housing: 3.75% - 7.76% 85% 1.20 5, 7, 10 , 35 20, 25, 30, 35 

Condominium Conversions: 6.25% - 9.74% 80% 1.25 3, 5, 7, 10 % Only, 30 

Retail: Anchored: 4.75% - 7.5% 80% 1.25 3, 5, 7, 10 20, 25, 30 

Retail: Unanchored: 5.0% - 8.0% 75% 1.30 3, 5, 7, 10 20, 25, 30 

Mobile Home Park: 5.0% - 8.5% 80% 1.20 3, 5, 7, 10 20, 25, 30 

Office / Medical Bldg.: 4.5% - 8.25% 80% 1.30 3, 5, 7, 10 20, 25, 30 

Industrial / Warehouse: 4.25% - 8.5% 80% 1.25 3, 5, 7, 10 20, 25, 30 

Self - Storage: 4.5% - 7.50% 80% 1.30 3, 5, 7, 10 20, 25, 30 

Gas Station / C-Store: 5.25% - 8.75% 80% 1.45 3, 5, 7, 10 20, 25 

Mixed-Used / Special Purpose: 5.5% - 8.5% 80% 1.35 3, 5, 7, 10 10, 15, 20 

Single Tenant,"NNN" 4.5% - 7.5% 80% 1.25 3, 5, 7, 10, 15, 25 10, 15, 20

Hotel / Motel (full & limited): 5.15% - 8.75% 75% 1.40 3, 5, 7, 10, 15, 25 20, 25 

Golf Course / Resort / Gaming: 5.5% - 9.5% 70% 1.40 3, 5, 7, 10, 15, 25 20, 25 

Outlet Mall (Indoor & Outdoor): 5.15% - 7.5% 75% 1.40 3, 5, 7, 10, 15, 25 20, 25 

Church / Synagogue: 5.92% - 8.5% 75% 1.25 3, 5, 7, 10, 15, 25 15 , 20 

Land - Raw & Improved: 8.50% - 15.00% 65% N/A 1, 2, 3 % 

Only Fix & Flip / Rehab (1-4) 9.00%-14.00% 65% ARV N/A 1-1.5 % 

Only Construction 4.65% - 11.5% Adj. 90% N/A 2, 3, % 

Only Bridge/Mezzanine Loans 6% - 12.5% Adj. 80% 1.10 1, 2, 3, 5 % 

The range of pricing is subject to the relationship between DSCR, LTV, quality of real estate, & credit strength of the transaction. Rates and & terms are subject to change without notice.

Hi Michael.  Depends on some factors i.e. location, loan size, FICO, debt service coverage, rent roll, experience, etc.  That being said here are two examples:

1. BANK TYPE MULTIFAMILY

Fico: Typically 680+

Credit: Letter of explanation for credit dings.

• Loan Terms: 25-30 year amortizations. 3, 5, 7, and 10 fixed options

Loan Size: $300K to $30M

• Max LTV: Up to 75%

Debt Service Ratio: 1.30+

• Interest Rate: 4.00%+

Property Types: Stabilized properties 5+ units, mixed use, mobile home parks, student & senior housing (without an assisted living component).

• Pre-Payment Penalty: Step Down Prepay, Flat Prepay, and Yield Maintenance. Typically step-down prepayment penalties during the fixed rate portion of the loan

Use of Funds: Purchase, Refinance, Cash-Out Refinance

Territory:Coastal Southern California,San Jose,Salt Lake City,Chicago,San Francisco Bay Area,Boston,Washington DC,Philadelphia,Seattle,Minneapolis/St. Paul,Denver,Portland,NY Metro,New Jersey,Miami, San Antonio, Austin

Special: Work with Foreign nationals as well but at a lower LTV. Non-recourse loans are offered at a 50% LTV.

Required Loan Docs: Executive Summary, Current rent roll, PFS, Tri-merge credit report, past 3 years tax returns (personal and business if applicable), past 3 years operating statements & current year to date operating statements, Pictures of property.

2. 80% Leverage Multi-Family Housing Program

National leader in commercial real estate lending representing over 110 lenders, 20,000 private investors, and 30 family offices with literally billions of dollars to deploy annually. 10,000 loan variations.  In addition, want to learn and Earn on the finance side, we can 3-5X real estate investors annual income by adding finance to their daily workflow.  Limited Net Branches available so reach out TODAY! 

Hello Lynn,

Apply at www.11capitalfinance.com, over 10,000 loan variations and specialize in new CRE investors. Also have an education platform for real investors that want to learn and even Earn on the finance side. Chris

Hello Chivas. If any property is being purchased or owned by a single LLC, the general rule of thumb how the file will be underwritten by a lender is anyone with over 20% ownership will need to be on the loan. If you would like to learn and EARN on the lending side of the business which will 3-5X your annual income feel free to reach out. We teach real estate investors how to maximize profits by adding finance. We have a weekly intro to the business calls every Tues 1pm, Wed 3pm, amd Thurs 1pm EST. Would love for you to join. Chris