This is our new commercial that is scheduled to start running on television next week that we approved yesterday. We hope you find it interesting.
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
Financing for CRE construction projects can be problematic to be sure. The regulatory envelope continues to change. Developers need equity financing today to create enough incentive for them to bring project opportunities forward from the pre-development stage to the pre-construction phase. The pre-construction phase has been by no means a guarantee of outcome. The practical outcome is for the CRE new construction financing vertical to have an end-to-end solution. … More CRE Construction Financing for Projects Over $20 Million
More than $500 billion in CRE loans and investments are expected to be realized this year, worldwide. That’s an astounding number. CRE investment loss mitigation practices have not proven to be up to the task (otherwise, the losses would be a lot less, wouldn’t they?). … More The Failure of CRE Investment Loss Mitigation in the Analytics Age
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
Changes in the market are inevitable and it is just not possible to project market conditions beyond the 2-year window with any amount of certainty that is worth betting investment dollars upon in today’s capital markets. The reality is that you can’t expect to manage the myriad of market risks by simply conducting a market analysis once a year or once a quarter on an ongoing basis. If you are going the private placement offering route (i.e.: seeking capital through the broker-dealer market) the compliance requirements of FINRA and the SEC for due diligence demand a whole lot more … More The Market Test: Why Capital Financing Success is so Elusive
Credit risk underwriting has become an extraordinarily complicated process for business lending and investment. Books have been written about it. Banks spend fortunes on trying to manage it. Everyone in finance has been taught the importance of it and yet it remains a pivotal element in the search for the Holy Grail – the reduction of investment/loan loss severity risk. … More The Emperor Clothes: Credit Risk Underwriting
there are problems with both understanding the commercial real estate development financing process, as well as managing the execution of the process that need to be more clearly understood. … More Commercial Real Estate Development Financing: Failure Isn’t An Option
The capital markets have been shaken by the change in interest rates by the Fed and that means the investment preferences of the capital markets are going to change – and we are not just talking about interest rates. … More Commercial Real Estate Development Financing
Your operations business plan has to be a living document that is updated each month of operations or you face the reality that you are not being an efficient steward of capital. Updating your operations business plan takes some effort. … More Is Your Business Plan Alive & Well?