If anyone Says they can Finance anthing over 75% LTV RUN!

[Dee Duncan]

Good Morning to everyone for several months I have sat on the sideline watching people erroneously   advertise 100% Financing available.

Here are the reasons why 100% financing are Not available.

• The Economy is no where near the levels it was in 2008 when investment banks were handing out loans like paper towels. Those days are long gone.
• Lenders refuse to be placed in a second lien position on property the risk is way to high!
• In order to fund 100% financing there must be 80% Loan Senior Loan and a 20% Jr Loan. Conventional nor Private Lenders are NOT doing these types of deals.
• Think Like a Bank: Banks tend to stay away from High Risk Leverage and So should you. The last thing a bank or private lender wants is to foreclose on a deal.

The primary job of a financial institution is to mitigate risk and increase profit margins.This is the reality of the lending business and I am Tired of seeing hardworking people who are looking for help get taken advantage of.

If a lender cannot provide 3 Professional references the chances are extremely high your dealing with a con-artist. If the lender your working with cannot show you Previously Funded Deals WITH VERIFIABLE ADDRESSES confirming the close of the loans they originated. It's a Scam. Folks please do you due diligence before engaging in a loan with a lender.

Today I draw the line in the sand! People need help closing deals and have no time for scams. I hope this helps. I wish you all an outstanding day

Much Success and Peace

Dee Duncan

Commercial Loan Ad-visor

ACG LLC

Managing Partner

949-200-6080

[Kathleen Smith]

well, not 100% true, maybe for true for unrecognized companies.

we do 100% plus,so it would be better to understand what institution is offering the product and how, rather then saying its not available. 

you can see the details and intro video on how we do it, and it is very transparent.

Additional details on our websites at: www.superjumboloans.info

for more info on the topic, email me and i will give you details.

Kathleen Smith

Harbour Equity Partners
Private Client Services, LLC

Admin Assist.  | Private Banking and Client Services

NY Office    631-757-9700

Fax.           [phone]
Email.    [e-mail]     

[Dee Duncan]

I watched the Video Kathleen using alternative assets to fund a commercial real estate deal is not something I would advise. Kudos to you and your company for being willing to do that. If a commercial asset is NOT strong enough to support a loan and the sponsor/borrower does not have the cash down payment to acquire the asset I would say walk away from it. Again Think Like a bank and protect yourself from bad deal structures  that you will regret later. Not Saying this about your company Kathleen just in General rule of thumb.

[Kathleen Smith]

agree,, just the bank is Deutsche Bank, and the banker is the owner of our company,, we have been at this for years, and its not for lending to people with no money,, its for lending to high net worth that cant unwind valuable assets, and still allowing them to transact. 

[Dee Duncan]

I understand I am just old fashioned in my business model if I have to tie up additional assets to make a loan on a commercial loan. To me that makes not since to do that a commercial property should have enough cashflow to support the loan period. If down payment is an issue work it out with the seller. Thank you Kathleen cheers.

[Rich Coppage]

Dee -

Yes and no.  While it is true that most commercial banks and some private lenders won't allow 2nd mortgages and will in some cases preclude mezz financing as well, there are specialty lenders that will do senior stretch financing with up to 90% leverage for sound projects with good sponsorship.  In essence, it would be a first mortgage and second mortgage combined with an equity kicker.  But you are right in that most commercial banks don't offer innovative structures like this, so yes if you are looking for plain vanilla financing, don't count on LTVs and LTCs going above that 75% threshold.  Although Multi-family has gone as high as 80%.

Of course my comments relate to the commercial side.  I have no idea what lending guidelines look like on the residential side of the business.

 

Rich Coppage

Vice President, Cressida Capital

8939 S. Sepulveda Blvd.

Suite 102

Los Angeles, CA 90045
O: 213.784.2784 x1004

M: 480.215.9909 

F: 480.269.9805

E: [e-mail]

www.CressidaCapital.com

[Rich Coppage]

And Dee you are correct.  You have to bring some cash to the table even with structured finance because equity investors may be willing to put up to 90% of the equity with a strong sponsor, but the other 10% has to come from the sponsor.  The caveat would be with certain credit tenant construction projects where experienced developers can get 100% LTC deals done.

 

Rich Coppage
Vice President, Cressida Capital
8939 S. Sepulveda Blvd.
Suite 102
Los Angeles, CA 90045
O: 213.784.2784 x1004
M: 480.215.9909
F: 480.269.9805
E: [e-mail]
www.CressidaCapital.com

[Dee Duncan]

Rich there are some that specialize in niche markets but there's always a caveat even i niche deals most of the people seeking help fall into the normal Commercial Bucket. This is why I choose to say something.I hear horror stories of people getting cheated out of $40,000 or more. That should never happen and sad to say majority of that comes from these scam artist claiming they can fund 100% financing loans.

[Rich Coppage]

Dee, I don't know if the majority fall into "normal"  because I've worked with some pretty heavy-hitting developers and investors on projects up to $50 mil and they were considered unbankable by their own commercial banks (at least their projects were considered unbankable)!  So they had to go through specialized private lenders.  Now granted these were institutional size private lenders.  So I probably do agree that there are a lot more scam artists at the lower end of the market than at the higher end.

Rich Coppage
Vice President, Cressida Capital
8939 S. Sepulveda Blvd.
Suite 102
Los Angeles, CA 90045
O: 213.784.2784 x1004
M: 480.215.9909
F: 480.269.9805
E: [e-mail]
www.CressidaCapital.com