It's September. As history will tell us, it's typically the Stock Market's worst month. However, there's been nothing "typical" about this last year or so, in terms of "the markets". Ben Bernacke states that the worst of times are behind us, and that the indicators bear that out. Whether or not that's true, time will tell.
I personally feel that the Economy cannot truly experience a recovery until the Real Estate Markets and property values make a steady and sustainable improvement. My fear is that unemployment and decreasing earnings will continue to get in the way of that and we will see "see-sawing" in our economy for a while longer .
Because of the falling income experienced during this downturn ... banks and lenders are saying "no" to investors, borrowers, dev
elopers, and the like if their present income picture isn't stable. They obviously are nervous as well, about the potential for these commercial developers/owners problems to continue moving forward.
So where does that leave commercial property owners who can't renew their 5 year balloon note taken out on their strip center during the years of 2003, 2004, and 2005? (Even if the Borrower/Owner has maintained his/her income level through these tough times ... what has happened to the appraised value of their properties (i.e. the bank's collateral)?
These are real problems and scenarios being seen and faced by commercial property owners everyday. Their stories have gained increasing focus by the media more frequently as of late.
Enter our "Asset-Based" Loan Program, which has NO INCOME, NO REAL ESTATE APPRAISAL, NO CREDIT REQUIREMENTS. It's hard to find flexible options like these, as you are well aware.
An unique lending option has been developed and made available for Borrowers/Trusts/Entities with substantial, traded, and liquid Stock, Bond, or otherwise convertible holdings that are facing this dilemma. Now, their assets can be collateralized and are the ONLY QUALIFICATIONS NECESSARY FOR THIS SPECIALIZED LOAN.
Example: You have a Builder/Developer/Investor as a client who has done very well over the last 5-10 years. They invested wisely in stocks, bonds, mutuals, C.D.'s etc. However, their bank just said "no" to the renewal of the note on their commercial property.
At a rate less than 6%, (when an individual can "pledge" stocks, bonds, mutual funds, C.D's, etc.) an Asset-Based Loan can offer low-rate financing options in 30 days or so, after a review of those holdings, up to 75% of the "market value". For those of you involved in religious, charitable, and community organizations, an Asset-Based Loan has even helped a non-profit organization move their building plans along after their bank said "no" to conventional financing.
A loan of this type may just be the answer to your client's needs and provide an option that hasn't been available for them until now. Please keep this loan option in mind for investors, non-profit organizations, and commercial customers.
For further information regarding this lending program, please contact me. I'll be happy to answer any questions you have!
Gene Mundt, Sr. Vice President
Personal NMLS #216987
The Federal Savings Bank
1823 Centre Point Circle, Naperville, IL 60563
Skype! 630-219-1316
Gene: Thanks for the commercial update. I don't suppose you're lending on developments, are you? I have a borrower out here who has been in the business for over 35 years. He wants to build a mixed use apartment complex. The commercial space is pre-leased and he has a personal net worth of over $25 million. He'd like to borrow 5.9 million but would settle for 4.9 with 1 million of his money in the game. At 4.9 LTV is about 65%. Ideas? Thanks!
Paul: Thanks for the note regarding the developer. I have written you an email with a little information. Please be on the look-out for it. I'm hoping that between the two of us we can solve this lending issue for your developer. Again, thanks so much!
Gene
Hi Gene - Is this a nationwide program you offer, or for properties/borrowers in certain states?
Karen:
Since it's a loan against assets, it is not state restrictive. I'll be glad to share the information on the loan program, if you want or need info.
For your information, my company (Chicago Bancorp) lends in most states across the union. We perform in-house processing, which I enjoy greatly. The benefits of this have been welcome, as I obviously retain more control through-out the entire transaction/processing of the loan. It also enhances the speed at which I obtain answers and can close. Would love to hear about American Pacific and its' features ...
If I can help in any way or answer questions, please let me know.
Thanks for all your good information I would use you if you were in Northern CO
Gene -
I have a couple of different scenarios -
Let's say purchase a vacant building with former restaurant included in price; buyer is in the restaurant business and runs a different place. At the time no income producing in the vacant property and buyer basically has experience but not cds. Anything here you can work with?
Thanks,
PVH