Rapid Real Estate Investing Results

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.

Marshall

http://GetCommercialFundingHelp.com/bizloan/

You need to know this information on how to vet out your real estate lender.

Technorati Tags: commercial real estate, funding solutions, real estate financing, real estate investing

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 would like a more detailed plan of how to get your loan request approved, check out our free report at this link.

http://GetCommercialFundingHelp.com

Technorati Tags: commercial real estate, commerical real estate investing, funding solutions, real estate investing

I wonder how Warren Buffett feels about Commercial Real Estate?

According to Bloomberg News,  Warren Buffett just predicted we will NOT see a double dip recession in the U.S. economy.

Berkshire Hathaway is up approximately 25% for this year while most companies are still down or only seeing single digit increases in stock prices.
Do you think Buffet’s comments are just him trying to have a “Self-fulfilling prophecy” due to the large stake he has in Wells Fargo or are we really on a solid path to recovery?

One thing is for sure, real estate is still hurting badly, both commercial real estate and residential.    Banks are still taking a beating and will be for quite some time.  Also, our unemployment numbers are still around 10%.  Hardly a recovery if you ask me… but I’m not an economist…

Some banks are still lending though.  Also, Fannie and Freddie are apparently doing basically 100% financing again for first time homebuyers.  This is very interesting.  I wish they’d do that for Commercial Real Estate. 

Also, there are a few hedge funds that are lending or purchasing Commercial Real Estate.  They are taking advantage of these low prices and you should too.  You need a down payment or an equity partner to use them to fund your deal… about 30% down, but they will generally do it if you or your team have experience and if the deal is big enough.

Want to know how to give  yourself the best chance of getting your commercial real estate deal or small business loan funded?

Go download my free report on ‘How to Virtually Guarantee Your Commercial Loan Gets Approved”

Make it a GREAT week!

Marshall

P.S.  If you have a great commercial property to sell, we might be interested.  Looking for Multi-Family, Student housing and Commercial Real Estate Performing Notes.  Notice, we are not looking for residential right now.

$3 Million to -$10 Million range.  Cap rate of 10-12+  Leave a comment below if you have something and I will contact you with more specifics.

Technorati Tags: commercial real estate, real estate investing

Did you realize there have already been 103 failed banking institutions in the United States this year?

They always happen on Friday… so expect to see a few more tomorrow.

I have been projecting out to the end of the year that we will have at least 180 failed banks for the year.

Is that a high number?

Let’s explore it.  Below is a link to the FDIC website where they list all of the failed banks for the past 10 years.  It’s a little bit top heavy don’t you think?

http://www.fdic.gov/bank/individual/failed/banklist.html

I will break it down by year because I haven’t done that for a while.

Year   – Number of failed banks

2000 – 2

2001 – 4

2002 – 11

2003 – 3

2004 – 4

2005 – 0 (Yes that’s a Zero)

2006 – 0 (Another big goose egg!!)

2007 – 3

2008 – 25  (UH OH!!)

2009 – 140 (YIKES!!!!)

By July 24th in 2009 – We had 64 banks shut down

This year, by July 23rd – We have had 103.

Maybe you think things are slowing down a little now?…  They aren’t.  You watch.

By the end of 2010, we will have at least 180 failed banks… maybe more.  Here is a little more detail about this year’s stats.  You will notice that we aren’t slowing down, staying pretty steady if you ask me.

Month – # of bank failures in 2010

Jan – 15 Failed banks
Feb – 7
March – 19
April – 23
May – 14
June – 8
July – 17 (None just prior to the July 4th Holiday and we still have one more Friday to go as I write this)

Do you think the FDIC is concerned about this… or about the perception of the public?

I’m going to tell you that they absolutely are.  Do you remember in October 2008 when the FDIC bumped up the FDIC Insured Coverage amount for deposits from $100,000 to a whopping $250,000?  That was directly related to consumer sentiment about the stability of our banking system.  It was a temporary measure to increase the coverage.  They had said at the time this would be lowered back down on Dec. 31 2010 – projecting the crisis would be over by then.

Guess what… they just made it permanent.  Well, actually it was made permanent by the “Dodd-Frank Wall Street Reform and Consumer Protection Act” signed on 7/21/2010 by the President, see the press release below.

http://www.fdic.gov/news/news/press/2010/pr10161.html

So, who are these banking institutions that are failing?  Well, they are NOT the big banks.  You know, the “Too Big To Fail” banks like Bank of America, Citi, Chase, Wells Fargo.  Nope, these banks all got their whopping tarp money and are making a TON of money off of zero or nearly zero interest loans from the FED.

The banks that are failing are YOUR neighborhood banks.  You know, the one’s with only 2 or up to maybe 10 branches.  Those are the majority of the failures.  This is all getting swept under the mat on the news.  Nobody is even covering it.  Why is that?  Do you think they are being told to “Pipe Down” about the bank failures?

This would be newsworthy in any other year.  For some reason, the news media does not care about it.

Well, I have an idea for you.  Go talk to your local bankers and let them know what you do.  See if there is a fit for you to help them or some of their clients.

If you are a Realtor, maybe you can help them with their marketing.

If you own a landscaping company, maybe you could help them clean up their REO properties to give them some curb appeal.

Are you a contractor?  See if you can do some work on the houses to make them show better on the inside or outside.

If you are out of work, there IS work to be done.  I’m totally serious!

Maybe, if the bank won’t pay you upfront, you could do a little profit sharing with them or negotiate with them to get paid when they sell the property.

Or, if you have no work right now, maybe you could use one of these properties as a showcase of your talents.  Create a history book of the property, what you did and how it turns out.

What if there was a way that you could not only help your local bank get out of trouble, but also help the local property owner get new funding?

Check this page out if  you are interested in becoming a commercial real estate hedge fund originator.  What’s that?  Go read the report on this page… You have to opt-in to get it, but it’s a great read and will explain what I’m talking about.

There is a lot of work ahead of us all to get this economy going.  Housing is a huge opportunity, but start out slow if you are just getting going.

Technorati Tags: Bank negotiation, commercial real estate, investing education, real estate investing

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.

Technorati Tags: commercial foreclosure short sale, commercial real estate, commercial real estate inveesting

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:

http://RapidReiResults.com

Technorati Tags: commercial foreclosures, commercial real estate, commerical real estate investing

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?

Click this link and on the following page, put your e-mail address in the sign-up form and let’s rock!

Technorati Tags: commercial real estate, investing education, real estate investing

Seriously, why is Obama picking just 5 states to help out with the foreclosure crisis to the tune of an additional $1.5 billion???

I do not understand this logic at all.
We already have programs in place to help with affordable housing.
The banks already have loan modification/workout groups and loss mitigation departments.
The banks will already do a short sale which, many times is a better solution for the homeowner than a loan modification. (This is not legal advice either, but the options are there).

See the article below.
http://cli.gs/zgjTyz

The administration and the government as a whole need to focus 100% of their attention on how they can spur the private sector to expand and create more jobs.
The clues are right there in the article folks.
(Hint, it’s not going to happen if you increase taxes)

It is all about jobs, JOBS JOBS!!!!!

We can’t spend our way out of this by throwing money at more government programs and handouts!

The private sector can get the economy going again if they have access to funding.
Right now, they can’t get the funding they need so they are not hiring.
Thus, no one is producing anything and since 10% of the country is not working (Actually much higher if you take into account the number of people that are not looking for work right now), no one is buying anything.

Look at the housing sector. The only reason that housing has had an increase in anything is because of the tax credit for home buyers. Without that incentive (A tax reduction incentive) the housing numbers would be abysmal.

How is dumping more money to save someone’s underwater mortgage going to help the private sector?
The only people that will help in the long run are the government workers (Which we keep getting more and more of) and the BANKS!!!

The big banks all made money last year right?
What did the banks do to actually help the economy though? Nothing.
They did not lend any money out.
We the people forcibly loaned the banks money and they turned around and horded it and bought smaller banks to get more access to your money.

The government needs to help small businesses get more funding and then step back and get their hands off the economy. Don’t increase taxes, don’t overhaul our insurance programs which will increase taxes and greatly expand government. They just need to back off. Spending tax payer money just so you can say we are doing SOMETHING is just plain stupid. Obviously, the stimulus program has not helped. Over the last year, what has happened? Has the economy gotten better? Unemployment numbers haven’t.

One thing the government is doing that I support is they do have some programs to help investors supply affordable housing and to rehabilitate commercial properties. Why do I support this? Because it puts construction crews to work and it creates safe, affordable housing. This helps spur the private sector.

If you want to join me for a webinar on some of the available Government Funding Options for Real Estate Investors, enter your name and e-mail address below.
I’ll be holding an encore call on Tuesday night, Feb. 23 at 9:00 PM EST.

Technorati Tags: Build my IRA, commercial real estate, funding solutions, government funding, investing education, real estate, real estate financing, real estate investing, real estate riches

________________________________________
UPDATE: Since we couldn’t do the webinar last Thursday due to the weather, see my next post regarding what is now available.

http://rapidreiresults.com/wordpress/?p=553

This latest post explains how to get the special report on funding commercial real estate deals with hedge funds, both for your own deals and for finding funding for other investors.
________________________________________
Thursday Feb 11th at 9pm eastern time. You MUST register
and I’d do it RIGHT NOW:

Check out this video from Marcus and Millichap president Harry Green where he weighs in on the state of commercial real estate.

Back to our webinar info:

Here’s what you’ll learn:
UPDATE: **************************
Sign up now and get access to the replay webinar.
You will be automatically sent the information to get to the replay, plus the special report will be sent to you.
*********************************

* How to enter the secretive realm of the
hedge funds, to connect them with money making
opportunities right in your neighborhood right now

* How to benefit from the commercial real estate
crash, without investing a dime in buying or selling
properties

* How to find deals with almost no work, so you
simply introduce someone to a private equity
fund or hedge fund and get a guaranteed
commission that can be enormous

* How to find a lender as opposed to yet another broker.
The difference? You’ll have access to the direct
decision-makers on the loans you want funded. And
they’ll have access to private equity and hedge fund
investors because everyone is participating in the
loans, not brokering them to someone else

* How to submit a deal so that there is no further work
required on your part

* A simple “back of the envelope” way to know
that a deal is likely to fly, and when it’s not.

* What makes a good deal or a bad deal

* How to go to networking meetings and find deals
right and left

* How to connect applicants with lenders with a simple
two page form guaranteeing you will get paid, so that
is ALL you have to do, you’re done, and someone else
makes you money while you move on or pursue your hobbies
and spend time with family.

* How to make the big money in “commercial
loan modifications” and “workouts”

Register for the webinar here:

BTW. This training webinar alone is easily worth thousands to a
person who is willing to take the action steps and there MAY not
be ANY replay:

Full Disclosure: While Richard and I are covering a ton of great
stuff on the call, he can’t possibly teach you everything you
need to know in a 1-2 hour webinar.
There is an offer at the end to get further training and support
from Richard and his team. If you decide to purchase his program,
my company will be compensated and you’ll be helping me feed the
children (The Moreland Children, 4 with a 5th one on the way .

Get this though, if you decide to purchase the program, I’m going
to include a very special bonus to help you with your online
marketing as well. You’ll be able to apply this bonus to ANY
type of business you are doing online.
Remember though, there is no obligation to purchase anything
and the webinar alone is going to be worth some serious money.

Technorati Tags: Bank negotiation, commercial real estate, government funding, investing education, real estate investing

In a few weeks I will be holding a webinar with a friend of mine that I’ve
been following for several years. I started checking him out when he
came out with a loan modification program for residential borrowers.

Well, I started exchanging e-mails with him about 6-8 months ago and I
found out a few months back that he was getting into commercial loan modification.

So, I let him know that I would like to get together and do a webinar for
everyone on my property buyers list because I know several of you want
to get into commercial real estate or already are. Plus, several of you are
in a tight situation with one of your commercial properties or know
someone who is in need of some help.

If that is you, check out some of the info below that we will be covering
on the webinar. Actually, I was able to get Richard to setup a replay webinar for my guests that want to get started in this right away. I’m still planning a live call with Richard, but you can get access right away.

I’m telling you, Richard delivers a TON of great info on his calls.
Get signed up for the webinar right here:

I want you to walk away from one of my webinars knowing that
you learned something that you can put to use right away.

So, sign-up right now, the webinar is going to be packed full
of actionable items that you can use in your real estate
business right away. You will be forwarded to the replay page immediately after verifying your e-mail address.

So PLEASE register as we’ve had tons and
tons of people who want to be in on this and he may force me to pull it down any day now because my guest is planning to take this call and put it into his paid mentorship program.

Here’s what you’ll learn:

* How to enter the secretive realm of the
hedge funds, to connect them with money making
opportunities right in your neighborhood right now

* How to benefit from the commercial real estate
crash, without investing a dime in buying or selling
properties

* How to find deals with almost no work, so you
simply introduce someone to a private equity
fund or hedge fund and get a guaranteed
commission that can be enormous

* How to find a lender as opposed to yet another broker.
The difference? You’ll have access to the direct
decision-makers on the loans you want funded. And
they’ll have access to private equity and hedge fund
investors because everyone is participating in the
loans, not brokering them to someone else

* How to submit a deal so that there is no further work
required on your part

* A simple “back of the envelope” way to know
that a deal is likely to fly, and when it’s not.

* What makes a good deal or a bad deal?

* How to go to networking meetings and find deals
right and left

* How to connect applicants with lenders with a simple
two page form guaranteeing you will get paid, so that
is ALL you have to do, you’re done, and someone else
makes you money while you move on or pursue your
hobbies and spend time with family.

* How to make the big money in “commercial
loan modifications” and “workouts”

Remember, you will be sent to the replay page immediately after verifying your e-mail address and you will NOT walk away disappointed.
Enter your name and e-mail address right below to register for the call.

After you register above, you will get an e-mail to confirm your registration.
Open the e-mail and click the confirm link to be sent to the replay page.

Technorati Tags: commercial real estate, Loan Mod, real estate, real estate financing, real estate investing