Categories
Approvals Hard Money In The News Large Projects Money Available Real Estate Projects REO Testimonials

Lender Testimonial October 8, 2009

We recently met with Joe Tufo, working on a cross-collateral cash-out deal in CA. It was quite complex involving 1st & 2nd lien positions blanketed over 4 separate parcels.

Joe was very thorough in providing a complete overview of the file including all of the needed information for us to finance this project. He went “over-the-top” and provided a video. In 10 years of funding billions in projects we have never had a broker shoot a video for us. It made it easy for us to understand the application.

Joe was consistent & provided prompt, courteous service, and above all accurate detail in regards to our questions. I know if I need to reach him, I can call him any time and he will take the time to work through the scenario with us. I know many of his clients have commented on how knowledgeable and professional Joe is.  I look forward to a long working relationship with such a wonderful company.

BEST REGARDS,

David

HEF

Categories
Hard Money In The News Real Estate Projects Referral Partners

$300,000 Hard Money Loan Approved – Read The Details

Here’s a real deal:
The General Terms are as Follows:
Estimated Loan Amount: $300,000.00

Collateral Description: SEE ATTACHED EXHIBIT “A”

Loan Term: 5 Year I/O.

Interest Rate: 9.500% interest only.

Buy down Option: 7.500% interest only (add 1% to loan fees)

Prepayment Penalties: N/A

Payment Reserve: N/A

Broker Fees: 2%

Loan Fees: 1% plus applicable legal and closing cost, to be paid within the loan proceeds at closing.

Cash Flow Specialists Inc. Fee: 3%

Underwriting/Due Diligence: $1,250.00 – This fee is refundable. The purpose of this fee is to formally engage HEFs Due Diligence Department to continue its required underwriting and due diligence on a best-efforts basis. (see page 2 of underwriting / due diligence agreement for instruction on sending)

LOAN REQUIREMENTS
Receipt of: Letter of Interest & Underwriting / Due Diligence Agreement signed by the borrower(s).
Receipt and review of appraisal. Appraisal to be ordered by HEF, its successors and/or assigns if required. Existing appraisals accepted & subject to review.
Copy of hazard or liability insurance binder and paid receipt which is due at closing.
Receipt and review of title. Existing title commitments accepted & subject to review.
Receipt and review of trimerge credit report within the last 90 days or a signed borrower’s authorization. You will be notified prior to the time of our credit report request.
File subject to final underwriting review.

The undersigned confirms and acknowledges that they have read the foregoing letter and understand the contents thereof. This letter is not intended to address all aspects of an anticipated loan. It is understood that the acceptance by the undersigned will not result in a commitment to lend on the part of HEF, its successors and/or assigns. It is understood that any commitment to lend on the part of HEF, its successors and/or assigns will be subject to compliance of all loan requirements, closing conditions and confirmation of the perfection of any pending items.

The Scenario:
The client has a blanket first of $1.688m covering three properties and a $125k loan on na fourth property. We obtained a $300,000 first on one property and a blanket second on three other properties. The client paid an extra 1% to buy down the interest rate to 7.5% interest only for five years with no pre-payment penalty. Not Bad!

FAQ’s

In what states do you finance properties?
We finance properties in all 50 US states & all US territories. We also offer International financing in most countries around the world. Please contact us with questions on specific geographical areas.

Do you charge any upfront fees?
We do not charge upfront fees to consider any loans.

Who orders the appraisal?
We order all appraisals, if required, using only appraisers that are approved by us.

What if I have an appraisal done already?
We will always take a look at an existing appraisal but all appraisals are subject to review. The best and usually most cost effective strategy is to let us order all appraisals, if required.

What Loan to value do you offer?
We are able to offer up to 90% of the properties “As-Is” value or After Repaired value (ARV).

How long do you take to close loans?
We accept all files & process in the order they are received which is usually 14 to 21 days. We do have rush service available which will reduces the processing time in half. Please contact us for more specific information if you have any questions.

Cash Flow Specialists, Inc.
1-800-669-2700
help@joetufo.com
http://www.workingcapitalfast.com
http://www.joetufo.com/blog
www.facebook.com/joetufo
http://www.google.com/profiles/jptufo

To Subscribe to our Newsletter: http://www.joetufo.com/email/user/login.php

To Update or Cancel your Subscription: http://joetufo.com/email/user/subscribe.php

Fee and Commission Based.
*100% COMMERCIAL FINANCING/JV 10% Our forums are designed for Structured Financing of High End Commercial Projects – A&D, Energy,Technology, In-Ground Assets: Mines, Minerals, Precious Stones/Gems. PPP,Trade Platforms, Buy-Sell Bank Debenture Instruments-Cash Backed and Bullion Backed. SBLC’s,BG’s, MTN’s, CD’s, T-B’s, T-S’s, T-N’s, Bonds

Speaker, Writer, and Seminar Leader

Providing Honest Answers in a Timely Manner No Matter How Difficult the Situation.

Trust, Integrity, and Service: Here Today, Here Tomorrow


Categories
Hard Money In The News Large Projects Money Available Preparation Real Estate Projects REO

Distressed Debt and Workout Solutions

DISTRESSED DEBT

Eugene and GCREC are uniquely positioned to provide the capital you need for the purchase of discounted or distressed notes. Eugene’s Discount Capital Partners are exclusively focused on the acquisition of discounted debt on well positioned properties and have invested over $1.4 billion dollars into these types of transactions over the last 2 years. Capitalizing on the state of the current CRE markets, purchasing discount debt is the simplest and efficient way to expand your portfolio. They welcome you to leverage their partnerships and expertise to assist you in achieving your goals.

Purchase Options available up to 85% of Asset Value.

WORKOUT SOLUTIONS

GCREC provides capital support for commercial real estate investors with distressed properties or opportunities.

-Declined or Maturing Loans: Financing solutions to bridge a tough situation.
-REO Purchases: Quick, creative financing for acquisition of REO commercial property.
-Real Estate Under Contract: Re-negotiation assistance for property under contract or purchase options.

Categories
Business Lines Of Credit Hard Money In The News Large Projects Money Available Preparation Real Estate Projects Referral Partners REO

AVAILABLE PROGRAMS: Commercial

Eugene is a new vendor of ours. Read what he offers.

AVAILABLE PROGRAMS:

Transaction Types:

  • Fixed and Variable-Rate Mortgages
  • Senior Secured Debt
  • Mezzanine Debt
  • Hard Money
  • Bridge Loans
  • Equity Structures
  • Credit Facilities
Property Types:
  • Multifamily Apartments
  • Office Buildings
  • Retail Centers
  • Industrial Properties
  • Hotels/Motels
  • Medical Facilities
  • Self-Storage Facilities
  • Senior Living and Care Facilities
  • Mixed Use Properties
  • Gas Stations/C-Stores
REFINANCE

Income Producing Properties: Up to 75% Max LTV
Non-income Producing Properties: Up to 55% Max LTV
Restructuring of Construction Debt: Up to 70% of Stabilized Value
Business Lines of Credit or Unsecured Credit Takeout: Up to 85% Max LTV

ACQUISITION
Portfolio Acquisitions: Up to 75% Value, Dependent upon Security Type
REO Acquisitions: Minimum Value of $3,000,000
Business Acquisitions: $500,000 – $3,000,000
Note & Debt Purchase: With Discount
Development Acquisitions: Improved Real Estate Accepted


Providing capital solutions through strategic relationships, Eugene’s portfolio of capital partners assures you maximum flexibility and opportunity across the market.

Here’s an email that he sent me 9/24/09:

Joe –

We specialize in providing our clients the best possible investment banking advice as we work with our lenders to secure offers. Gauntlet’s minimum is really anything over $1M but recently have been seeing some well leveraged transactions in the $700K range. We work in the 50 states as well as Canada, nothing international at the moment.

Please call me direct should you wish to discuss further.

Best Regards,

Eugene


Here are some of his successful transactions:

TRANSACTIONS AT A GLANCE

$1,500,000 Fast Food Restaurant Debt Restructuring
Long Beach, CA
68% LTV
—————————————————————————————————————————-

$4,000,000 Warehouse building with Storage Yard Acquisition
Santa Fe Springs, CA
70% LTV
—————————————————————————————————————————-

$7,000,000 Warehouse Refinance
Oxnard, CA
66% LTV
—————————————————————————————————————————-

$2,000,000 Business Condo Refinance
Pomona, CA
72% LTV
—————————————————————————————————————————-

$19,000,000 Residential Development
Guynabo, PR
70% LTV
—————————————————————————————————————————-

$1,800,000 Medical Practice Acquisition
Indianapolis, IN
65% LTV
—————————————————————————————————————————-

$1,500,000 Refinance and Development
North Point, NY
55% LTV
—————————————————————————————————————————-

$1,000,000 Raw Land Refinance and Cash out
Kure Beach, NC
51% LTV
—————————————————————————————————————————-

$3,850,000 Industrial Refinance and Development
Los Angeles, CA
65% LTV
—————————————————————————————————————————-

$6,000,000 Hotel Acquisition
Bristol, CT
65%LTV
—————————————————————————————————————————-

$7,000,000 Residential Lot Development
50%LTV
—————————————————————————————————————————-

$5,000,000 Warehouse Acquisition
Carson, CA
73% LTV
—————————————————————————————————————————-

$2,000,000 Grocery Store Acquisition
60% LTV

—————————————————————————————————————————-

$1,690,000 Grocery Store Refinance
Gardena, CA
55% LTV
—————————————————————————————————————————-

$1,000,000 Business Condo
Oxnard, CA
72% LTV
—————————————————————————————————————————-

$4,000,000 Warehouse Refinance
Ventura, CA
46% LTV
—————————————————————————————————————————-

$1,600,000 Multi Family Acquisition
Atlanta, GA
58% LTV

Categories
Hard Money In The News Money Available Preparation Real Estate Projects Referral Partners

NYC Bridge Lender Submission Check List

General Submission Checklist:


The following is a list of items required to process your commercial loan. The more of the following information you can provide, the faster wel can react to your loan request.

Property Information:

Brief description of the prospective mortgage loan request, including:

Desired loan amount, estimated current as-is value of property, estimated as-completed value, sources and uses of funds, budget and exit strategy.

Description of the subject property, including:

Location, size/square footage (specify both gross and net, if applicable), number of units, survey/site plan, floor plans (if applicable), photos of subject property

Provide income/expense statement for the property, including:

Annual property taxes, Insurance, water/sewer taxes, fuel and electricity, maintenance/repairs. If available supply property operating statements for the past two (2) years.

Current Rent Roll (if applicable), including:

Breakdown of unit types (residential/ commercial), itemize regulated units (controlled, stabilized), lease escalations and expirations, unit numbers, tenant names, room/bathroom count, etc. For retail, office or industrial properties also provide unit square footage, base rent and description of any pass-through expenses absorbed by tenant.

If acquisition, provide copy of fully executed contract of sale.
If refinance, provide summary of current financing, price originally paid for property and date of purchase.
If subordinate loan request, provide copy of first mortgage loan offer/commitment.

Borrower/Principal Information:

Background of the Borrower(s) / Developer(s) / Principal(s) / Manager(s) including relevant experience (current projects, properties owned, and past projects completed. If condo renovation or development provide info on prior experience).
Credit Report Authorization.  Please visit http://truecredit,com join run your credit and  fax to 206-984-2853.
Personal Financial Statement for each Borrower/Principal. Please fax to 206-984-2853.

Please add a brief note explaining any other information about the proposed transaction, any relevant personal information, and any credit issues that may affect the Lender’s decision.

Categories
Hard Money In The News Preparation Real Estate Projects

We offer access to dozens of direct hard money lenders in California.

We offer access to dozens of  direct hard money lenders in California.

We serve all of the main metropolitan cities in California, including: Bakersfield, Chico, Oroville, El Centro, Fresno, Los Angeles, Long Beach, Glendale, Madera, Modesto, Merced, Napa, Oakland, Fremont, Hayward, Oxnard, Thousand Oaks, Ventura, Redding, Red Bluff, Riverside, San Bernardino, Ontario, Sacramento, Roseville, Salinas, San Diego, Carlsbad, San Marcos, San Francisco, Concord, Walnut Creek, Antioch, Brentwood, San Mateo, Redwood City, San Jose, Sunnyvale, Santa Clara, Santa Ana, Anaheim, Irvine, Santa Barbara, Santa Maria, Santa Cruz, Watsonville, Santa Rosa, Petaluma, Redondo Beach, Stockton, Vallejo, Fairfield, Visalia, Porterville, Yuba City, Marysville and many others in CA!

Be aware that some things only apply to California hard money loans:

Residential California hard money loans are typically given at a maximum loan-to-value ratio of 70% of the purchase price of a home or for a refinance – cash out up to 70% of the appraised value. This 30% of equity may seem like a lot of cushion for the lender but consider what position many convention lenders are in now! Most conventional lenders are out of business and we’re seeing the big banks closing their doors. Hard money lenders always play it safe, that’s why savvy lenders require at least 30% equity in your home. Many can cross-collateralize your CA propertiesif necessary to make your deal work. In other words you could max out one property up to 100% hard money financing if you have another property that can be secured for collateral!

There are few other qualifications for a hard money loan besides having that 30% “skin in the game” (skin in the game means having the 30 or more percent to put down on a purchase or at least 30% remaining equity in a home when refinancing.) Depending on the size and scope of your California deal you may be required to have a FICO score of 620+ but for most transactions most lenders still loan to anyone – even with bad or no credit!

If you are looking for a hard money loan on an investment property, a California hardmoney residential refinance or a commercial transaction your first stop should be to request our loan application at help@ joetufo.com or call Joe directly at 925-352-6000.

We  can provide hard money loans strictly based on LTV (Loan-to-Value Ratio) and can fund quickly to make your deal work. We have the ONLY hard money lenders that instantly gives you a lending decision. They provide a fully-automated immediate CA hard money decision.

Categories
Hard Money

Commercial Hard Money Loan Programs

The #1 Commercial Hard Money Loan Programs

Hard Money Bridge Loans

A bridge loan is a short-term loan which bridges the Borrowers plan from one point to another. The bridge loan is useful when a Borrower only needs financing for a short time frame where a long-term fixed rate loan does not make sense. A hard money bridge loan can be used by a real estate developer, or other business entity to take advantage of commercial opportunities that don’t fit into the traditional bank standards. Our typical maximum loan-to-value allowed on subject properties is 75%. Additionally, Borrowers are required to have a minimum of 10% cash or equity invested in a project when applying for a bridge loan; this is known as “skin in the game”.

Mezzanine Loans (and how they differ from bridge loans)

A mezzanine loan can be a type of bridge loan in the sense that it is short-term and not permanent financing. However a mezzanine loan is not secured by property, it is secured by an ownership interest in the company that owns the property. This occurs when the Borrower needs more money than he is able to borrow against the property, so he puts up an interest in his company as collateral.

End of Construction Pay Off Loans

If a developer has a construction project that is at least 75% completed, they can obtain a hard money loan to pay off the construction lender and complete the project. A hard money loan can also be used to bridge the gap between a completed project and standard financing from a bank or traditional lender. With an End of Construction Pay Off Loan, A developer can use the collateral of the current project to raise capital for the next project.

Foreclosure Bailouts (Foreclosure Prevention)

A hard money loan can be used to prevent foreclosure on a commercial property. A pending foreclosure can be stopped, if a property can be collateralized for up to 65% of its loan to value, based on the quick sale value of the property.

Purchases (Acquisitions)

A hard money loan can be used to purchase real estate if a borrower does not meet conventional bank standards or does not have time to wait for a traditional banks typically slow lending process. Hardmoney allows for things that banks never allow: low or no credit scores, incomplete construction, property in need of repairs, etc. Hard money funding can be used to quickly work around these financing problems and provides the opportunity for a savvy investor to acquire new properties.

Commercial Refinances

Commercial cash out refinances allow you to extract equity from real estate you already own. It can be a quick way of generating additional working capital to be utilized as you see fit.. Once all required paperwork has been submitted to our office, your hard money loan will fund as quickly as one week.

Foreign National Commercial Mortgage Loans

This kind of hard money loan is for foreign investors who want to purchase commercial real estate in the United States. All sorts of property can be considered for hard money funding, including; commercial, industrial, residential, hospitality, rehabs, etc. Few restrictions exist for countries with notable exceptions being Borrowers from, Afghanistan, Venezuela, Iraq, etc.

Rehab Hard Money Loans

A commercial rehabber/investor can use a hard money loan for short term financing. Once a property has been renovated and sold for a profit, the funds are repaid and we can often allow the borrower to use the funds again on the next project. The average closing time for an approved loan is just two weeks!

Categories
Hard Money Money Available

Commercial Hard Money

Commercial hard money is a loan issued to a business by another business. Collateral can take the form of a commercial property or residential investment property. As a means of receiving additional collateral for the lender a blanket mortgage can occur in which the loan is secured against a residence in conjunction with a business property. Sources of asset based commercial hard money loans are private individuals, mortgage companies, federal banks, and SBA lenders. The lenders have varying procedures. For example, a private individual might be unwilling to work out a plan of a matter of procedure in the case the loan was to become delinquent where a bank might. Penalty and application fees differ as well.

Commercial hard money lending does not meet the standard banking guidelines. As a result the rates are generally much higher than others. The industry standard range is 11-16% with borrowers typically paying back between 3 and 6 percent of the loan amount. The property value is a conservative amount which is determined by the lender. Generally, it will be at a rate which would allow the property to sell within 30 days.

Most of the hard money lending is done by private investment groups and finance companies. Very few banks will want to issue a hard money loan. Because the financial background of the recipient is ignored, it can be very useful for those who do not qualify for standard bank loans. For more information regarding, commercial hard money call Cash Flow Specialists, Inc. at 1-800-669-2700.