The New Way Forward for CRE Developers Seeking Profits

We are pleased to announce the completion of our new licensing program for developers, funders, investors, broker-dealers and other industry participants seeking a new level of CRE investment opportunity support.  Please click on the link and learn a bit more about this program.  I put together a very basic program presentation to get the points … More The New Way Forward for CRE Developers Seeking Profits

Shooting the Gap: Mezzanine & Preferred Equity Financing for CRE ADC Projects

The reality that is playing out is a huge window of opportunity that has been created for preferred equity and mezzanine loan funding participants in the market, as they have cashed-in to fill the void created by many commercial institutions exiting the market for new construction loans for all but their well-heeled customers.  The initial profit-taking bonanza this created for alternative lenders is starting to unwind … More Shooting the Gap: Mezzanine & Preferred Equity Financing for CRE ADC Projects

Key to the Kingdom: CRE Development Equity Financing

The amount of investment capital flowing into the market has included an incredible amount of capital investment in CRE properties in private placement offerings of equity securities in Direct Participation Program transactions.  The demand has reached a crescendo for investment in acquisition financings and now we are running out of product.  That’s where the equity financing for CRE development transactions becomes a real issue that requires a real solution but the developer has to do it in reverse order. … More Key to the Kingdom: CRE Development Equity Financing

Time is Money: Bridge & Mezzanine CRE Lending Opportunities for CRE Properties & Projects

Time is money.  We all know that CRE deals come with a built-in self-destruct mechanism in the form of the feasibility period commonly associated with every real property acquisition agreement.  The promoter has to get enough due diligence completed to justify the contract going hard or closing on the land or exit the deal and eat a capital loss.  Historically, mezzanine and bridge lending has been largely ignored due to the higher interest rates associated with these funding products.  While it is true these funding products cost more, a closer look may reveal that cost may in fact be negligible compared to the cost to capital associated with a lost opportunity. … More Time is Money: Bridge & Mezzanine CRE Lending Opportunities for CRE Properties & Projects

INVIZEN IT Announces Second Quarter Results: $635 Million+ Underwriting & Due Diligence Assignments

INVIZEN IT provides real-time investment loss severity risk management and mitigation on a proactive basis for the entire term of the investment.  The INVIZEN IT program design focuses on providing the following component services that support the proactive, real-time approach to investment/loan loss prevention … More INVIZEN IT Announces Second Quarter Results: $635 Million+ Underwriting & Due Diligence Assignments

Due Diligence Disclosures: We WILL Find Out

If you are going to undertake a securities sale for your company – either issuing equity securities or being the maker of a loan – you have to disclose the risks involved in the investment to protect the interest of those who may wish to purchase the securities as well as protect yourself against future accusations of investment fraud for having failed to do these disclosures fully, completely and honestly.  Having said, it never fails to surprise me when our due diligence review finds a disclosure issue that nobody thought would either be relevant or just didn’t want out there because it would reflect poorly upon the company’s prospects for a successful outcome. … More Due Diligence Disclosures: We WILL Find Out

Can You Sell Your House To The Bank & A Buyer At The Same Time & Still Own It?

Under the modified entry-fee approach there is a guarantee of access to care but no guarantee of cost containment.  The monthly fee will change over time but the resident gets to remain on the property as care needs change.  This is crucial because the adult children would rather sleep with rattlesnakes than move an elder.  It also creates an incredible profit-taking opportunity because we can use sophisticated capital structuring approaches to the contract structure that give the resident real control over their future estate (i.e.: receiving up to 99% of their entry fee upon leaving the community and the next resident taking possession of their living unit) and giving the developer the opportunity to generate tremendous yields before the property even commences operations.  … More Can You Sell Your House To The Bank & A Buyer At The Same Time & Still Own It?