Over the last several weeks I’ve been working on my Commercial Funding blog to try to spread the word on what we can do for you.
I have an unbelievable team with some of the most experienced commercial funding experts in the country.
If you have a commercial real estate funding need, we can help or it won’t get done!
Let’s get your Commercial Real Estate deal funded.
http://getCommercialFundingHelp.com/blog
While commercial and residential real estate were certainly much worse off two years ago, we still have a VERY long way to go before we can say that real estate is recovered.
The one place that real estate seems to be doing better right now is in the first time home buyer area.
This is a market that certainly is in better shape. I think that many people in their second or third homes have decided that they are just going to stay put for now unless they are moving due to a job change.
So, my recommendation if you are thinking of getting into real estate or kicking your business up a gear, is to focus on the first time home buyer or first time home renter market.
These are the homes that are priced below the median value for the neighborhood.
Focus on 3 bedroom homes, pref with at least 1.5 bathrooms.
As far as commercial and multi-family markets, they still have a way to go as well and I believe that they will suffer for several more years.
Multi-family properties will likely recover faster than the rest of the commercial sector.
If you are a multi-family or commercial owner and have issues with your current financing, comment on this post.
I won’t publish it if you don’t want me to.
I can help with your commercial and multi-family real estate capital structure and specialize in commercial loan modifications.
For the last couple of days, I’ve been telling you about some free videos about how to “hire” your very own free employees.
The videos are all about how to get free employees for your business.
They were created by my friends, Justin and Dreama Lee.
The response to these videos has been
overwhelming.
http://RapidReiResults.com/employees
People are going nuts, wanting to know how they too can hire their own free employees… whether this is actually legal… and whether it really works.
These questions are all answered in the video they’ve just released today…
http://RapidReiResults.com/GetFreeWorkers
In today’s video, the dynamic duo of free employees present actual case studies…
* Showcasing entrepreneurs who are
succeeding wildly with their own internship programs
* Talking to interns themselves about how they feel about being part of this process (here’s a hint: they love it!)
* And even “pulling back the curtain” on their very own business, showing exactly how interns impact their day-to-day operations.
You’ve got to get your hands on today’s
video. And fortunately for you, just like all the other videos in this series, it’s absolutely free.
http://RapidReiResults.com/getcheaplabor
To Your Success,
Marshall
P.S. What’s the first thing you will have your new free employees do for your business?
DISCLAIMER:
If a product or service is mentioned or referred to in this email, you should assume that we either own it or are promoting it as an affiliate or because of another material relationship/connection.
Now go get your free employees!! 
After getting beat up by traditional lenders, I started searching for alternative lending sources. Hard Money, Private lenders, and bridge lenders.
I had many colleagues having the same issue with traditional lenders.
Since this is such a common issue right now, I developed strong relationships with a couple of preferred hedge funds to help get deals done.
You must be careful who you deal with in this market of “Alternative Lending”. You need to be sure whomever you work with is not out to just get an upfront fee.
Additionally, you need to find out where the capital is coming from and you want to make sure that lender has the capital on hand, not just “committed capital.” These types of loans are scrutinized heavily and there is much due diligence that goes on for a commercial property.
You should also perform your own due diligence on your potential lender, the good one’s will expect that and will be more than happy to prove it to you.
Think about this, if you let your EMD go hard, you better be sure that the lender you are working with can actually fund your deal. Once that EMD goes hard, you are going to lose it if your lender can’t come to the table with the capital. How would you like to lose a 250K earnest money deposit because you didn’t do your own due diligence on your lender?
Here are two quick points that you can do once you have an agreement from your lender that they will do the deal.
* References – Ask for references of recent deals similar to yours that they have successfully funded… make sure they are recent.
* Proof of Funds – Ask for a proof of funds letter. Most frequently, this should be on the lender attorney’s letterhead.
Those two steps will save you a bunch of heartache. There are other ways to vet out your lender, but these two are the most important steps.
I am now sourcing deals for several hedge fund lenders that focus on commercial real estate backed bridge loans.
If you have a project that you need funding for and have been turned down by traditional lenders or just know that they will never fund it and you don’t want to waste your time, I would be happy to discuss your deal and see what program it may fit into.
Even if you have a deal that may be able to be funded by a traditional lender, bridge capital may be your best option if you need to get a great deal on a distressed property.
Traditional lenders take typically 90-180 days or more to fund a commercial deal. Contrast that with a bridge loan which can be closed in less than 30 days.
If you were a seller, would you rather get your money in 30 days or 180? Many lenders for REO properties can not wait that long for a property to come off their books.
With this in mind, whom do you think is going to get the best price on an asset, someone with quick close bridge capital or someone with a traditional lender that will have to wait to get funded?
Some borrowers that have been offered principal reductions on their current loan can not even go to a traditional bank. If the FDIC has the loan from a failed institution, they may require that they be taken out by a Non-FDIC insured institution. This is another area where a bridge lender excels.
Once you have taken down the asset with bridge capital and the property is stabilized, then you can refinance into agency paper for a better rate and longer terms.
The bridge lenders I work with do NOT charge upfront fees.
I have a capabilities presentation you can review.
They will provide the proof you need to vet them out.
Leave me a comment here to discuss your commercial loan request or download your report at the link below and then get in touch with me.
http://GetCommercialFundingHelp.com/bizloan/
You need to know this information on how to vet out your real estate lender.
I put together a list of everything we will need to get your funding request approved for a commercial bridge loan.
For the fastest review of your funding request, be prepared to provide the following documentation: (After initial review we will need additional documentation for verification, but this will allow us to get started)
_______Executive Summary for the project or funding request.
_______Existing mortgage loan information
_______Personal financial statement and schedule of real estate owned for each principal borrower (Anyone with 20%+ Ownership
_______Past Two Years Financial Statements for the property certified by your CPA
_______Interim Financial Statements for property or business certified by your CPA
_______Current Rent Roll certified by sponsor
_______List of capital improvements performed within the last two years (include dollar amount and completion date) certified by sponsor
If you are brand spankin’ new to real estate, I would say no, you absolutely should NOT check out Bulk REO or commercial real estate for that matter.
If you have been around real estate for a while now, and you are looking for better, bigger discounted deals, then yes, this is what you should be looking at.
The typical rehabber should not be looking at bulk REO deals unless they want to get out of rehabbing or if they have a great rehabbing team that they don’t need to stay on top of things 24/7.
In fact, if you want to check out Bulk REO deals, go grab this free report.
It’s the real deal.
I have been working with a couple of hedge funds for the last year and they are HUNGRY for these deals
You can also see my thoughts on using BULK REO investing to become the toll booth for bargain real estate in your market.
You find the BULK REO deals, they buy or fund them for you. Good deal in my opinion.
It’s totally true. Well, mostly anyway.
Actually, 80% of my tenants are great.
The other 20% though will make you want to pack up and quit this game.
I’m not just talking about the slow pays either, you have to expect that to some extent.
The one’s that drive me nuts are the one’s that pay slow AND do not care for the house… at all.
My most recent eviction has made me realize that some people just do not care about how they treat you or the property you are allowing them to rent from you. It started out fine and they were the nicest people. Then something happened and they weren’t able to pay on time… then they did not tell me about maintenance issues until it was WAY too late.
Then, once the eviction was over, I got to really dig in and see the damage that they have done. I’m thinking about posting some pics to demonstrate… Look for those sometime next week. Let’s just say, this beautiful home that we almost completely rehabbed 2.5 years ago needs more than a little cleaning. I don’t normally have to rehab my rentals but this one is at least a paint and carpet rehab and likely will be much more.
So, I have really been pondering where I’m going in real estate over the past several years. I’m not planning on straight renting anymore. It does not make sense. I had a hard rule early on that I would not just rent to anyone. I let that slide while the market was soft because I wanted to get things occupied. I’m going back to lease options and land contracts/Seller financing as my main exit strategies.
I’m also looking at alternatives to acquiring properties to hold.
Thursday I’m hosting a webinar to show you an alternative to actually buying the house.
Check it out.
http://RapidReiResults.com/liens
If you are interested in discovering a secret way of making a fortune with
foreclosures…without having to buy or sell the houses?!
Then join me on this weeks training session on how to:
Start making a sizable income in 30 days or less starting with only $1.
Generate thousands per month without using credit, partners, loans or cash
And much, much more!
(Your results will be very different and you might not make a dime… especially if you don’t actually do ANYTHING with this information. Learn it… then USE it.)
Check it out.
http://RapidReiResults.com/liens
I have been writing a great deal over the last few months on my blogs about the current trends in the commercial real estate market.
With the pressure the banks are having placed on them by regulators, they are having to force their borrowers to pay off their loans. This is known as “Accelerating the Loan” in commercial real estate. You can imagine the trouble this causes for the owner of a property.
These may even be performing notes. The problem is caused by the bank looking at their current loans and trying to figure out how they can generate enough capital to get their reserves where they need to be to satisfy regulators.
I guess they feel like if they have a performing note, it is more likely they will get paid off in full if they accelerate that note. To some degree this makes sense. However, for the borrower, this creates a major problem. With lending being as tight as it is all over the place right now, even a performing property may have trouble refinancing.
Admittedly, I’m not a commercial real estate expert. I have studied it from some of the best trainers out there. I also network with many people in the trenches every day. What I have learned is so much more exciting to me than residential real estate.
One thing is clear, you need a team behind you if you are going to get into commercial real estate. You should also take the time to learn as much as you can WHILE you are also looking at properties.
Don’t get paralysis analysis, it’s not good for you.
Get out there and start looking.
Find a commercial real estate agent in your area, start looking on Loopnet.com and start looking for distressed properties in your area.
Other ways to start finding properties:
1) Look on Loopnet
2) Talk to your local banks (you will need to build a relationship here)
3) Contact a commercial real estate brokerage (Again, relationship building)
4) Go to your local REIA Meetings
5) Contact your local Apartment association
6) Find a meetup group near you
7) Call smaller apartment and commercial property owners to network with (tell them you want to get into the business and ask if you can buy them lunch)
People LOVE to talk about their passion and you will learn a ton from people in the trenches.
If you want to learn more, register for my Commercial Foreclosure and Short Sale Newsletter group. I have a video that a few of my associates put together this week.
It will show you what they are doing to find commercial real estate foreclosures and short sale properties.
Click here to register for my newsletter and I will send you the details for the video.
If you watch any news at all, they are telling you that the economy might be turning the corner.
Well, even if it is, commercial real estate is going to lag the overall economy.
It will be interesting to see what happens in residential real estate over the next 3 months now that the First Time Home Buyer tax credit has expired.
I found this article today while doing some more research on the trends in the commercial real estate market.
It was posted in the Wall Street Journal almost 1 year ago.
“Local Banks Face Big Losses” and spells out some of the challenges local banks are having.
I will be on an informative webinar this Thursday to discuss some of these challenges.
If you are interested in hearing how you can be part of the solution to the commercial real estate foreclosure challenges, go to my sign up page here.
I will send you the webinar registration page on Tuesday, Wednesday or Thursday depending on which day you see this and sign up. See you on the webinar.
This will be powerful and very informative.
Click Here to sign up:
Over the past year, we saw 140 banks close down in 2009.
This year we already have 57 failed banks as of April 23rd,
just before the end of the first 4 months of the year.
Rest assured, tomorrow there will be more.
So, if we can assume there will be at least 3 more tomorrow,
that is 60 for the first four months of 2010…
1/3rd of the way done with the year.
Extrapolate that out for the year and we will exceed the number
of failed institutions from 2009 by 40 banks!!
That is a pretty big jump.
OK, so you argue we are in a recovery now…
Not so fast. Commercial real estate and I believe
residential mortgages are still going to continue to default.
These things don’t just stop because the new
unemployment filings are down for the past two weeks.
There is a big log jam still waiting to break free.
The biggest of which is in commercial real estate.
The failing institutions are not the too big to fail Wall Street banks.
Nope, these are your neighborhood banks and smaller regional banks.
The government is NOT going to prop them up.
They shut them down and transfer the assets to another, seemingly stronger institution.
Further consolidating the banking industry and making it less personal when you go
to the teller window. Oh, you don’t go in there anymore.. try it sometime.
See the difference between a local bank and a large regional bank… but I digress.
I am going to be holding a webinar with an expert in the commercial real estate foreclosure and short sale niche. This is actually going to be a series that we’ll be doing over the next couple of months to get you prepared to take this head on… with a team behind you.
Let’s help those local banks not get swallowed up and spit back out by the FDIC.
Let’s help local businesses and commercial real estate investors with their troubled loans.
Let’s become the savior in our own communities for these troubled folks and help as many people as we can.
I leave you with one of my favorite quotes from Zig.
“You can get ANYTHING in life that you want… if you will just help enough OTHER people get what THEY want”
How does that sound?
Ready to get busy?
