Walker Commercial Funding - Brian Walker

Venture Capital Article - Everything You Need to Know

Walker Commercial Funding — Sun, 27 Sep 2009 20:51:51 -0500

Hey Folks,

I've recent been published the peer-reviewed Scotsman Guide on Venture Capital. Please click on this link for the full article: http://www.scotsmanguide.com/default.asp?ID=3702

We'll worth the read and probably shocking to most who are new to the business.

Thanks,

Brian

Danger! Do Not "Shop Your Deals"- It only hurts you...the developer and the broker

Walker Commercial Funding — Sun, 27 Sep 2009 20:37:02 -0500

Time are tough. Enough said. One of the worst things you can do is "shop your deal". What I mean by this is sending your transaction (currency exchange, project development) to a) multiple funders; or b) multiple brokers. The most dangerous is sending it to multiple brokers. Or worse yet, a broker(s) accepted your project but doesn't have a funding source.

First, this is unethical on the broker's behalf, secondly the obvious will happen: He will send your project to every funding source and broker on the planet in hopes that someone will fund your deal. The best way to prevent this is to qualify your broker by asking if he already has a funding source that would accept your project. If he doesn't, don't give him your file. If he does, he should be able to explain the relative terms of the financing immediately or within 24 hours after contacting is funding source.

Why shopping hurts you: it's a small world in the universe of performing funders and brokers. We all know each other. There are some files that I see submitted to our company by 5 or 6 different brokers...funders simply turn down files they see more than once because they assume there's something wrong with the file,they turned it down previously, or they'll pick up the phone and call their other colleagues and ask them why they turned it down.

Why? Probably because the original broker was a rookie and just sent in a bunch of files that made no sense. WCF has our own in-house underwriter and we MAKE FILES WORK. Yes, files that have been turned down. They were good files, just not submitted properly. So we have go back to the funder after hearing, "we saw this file and turned it down" and explain why the deal will work.

Currency exchange deals won't tolerate ANY shopping. If they see the same deal twice, it is immediately declined and the client is blacklisted.

Solution: qualify your broker and make sure he is direct to a performing source or a broker that is. Often, that is WCF.
To learn more about our company feel free to watch this one minute video: ABOUT WCF

Understanding the difference between PRIVATE funding and INSTITUTIONAL funding....

Walker Commercial Funding — Sun, 26 Apr 2009 13:35:00 -0500

Banking as we once knew it is gone for a very long time. In fact, very few institutional banks funded large commercial projects in 2008. I have substantial visibility into the market and the only institutional activity I saw was banks calling their notes due immediately. Banks were forced to do this because of their own liquidity issues and many developers were left with no funds and the project(s) came to a screeching halt.

"Joe Developer" then knocked on every bank's door only to find the same answer: "sorry, we are not lending right now."

Since the death of institutional banking, the developers have gone to the private equity world to get their projects funded. My company has always worked exclusively in the private equity side of funding and have had to introduce many of these seasoned developers to the private funding world. Fortunately, this world is actually more simple and efficient than the traditional, institutional banking model. There are, however, some differences that anyone seeking private financing for the first time needs to be made aware of.

1. Your private funder usually has his own idiosyncrasies. For example, a funder may only be interested in hospitality projects in Costa Rica, Mexico and Panama. That's just his funding footprint. He knows the area and is comfortable lending there.

2. There are no referrals in the private money world. Period. Your local bank advertises their closings. Private money never discloses their transactions or their clients. Your private funder will have you sign an NCND, which means you cannot even reveal who funded your project. This protects the funder. He does not want to be vetted, interviewed or interrogated. He usually has a "gate keeper" or "master broker" that will qualify you. Once you fit his funding footprint, he will want to meet you face to face. At this point, the funder will give you every comfort level you will need to assure you of his abilities to fund your project.

3. Private money moves fast. If you, as a developer, have all of your business in order, you can fund in as little as a week.

4. Private money has no rules. Every funder has their own terms and will structure a loan in the most "make sense" way for your project. It's best to hear what is offered than tell him what you will accept. As the old addage goes, "the tail will not wag the dog".

Walker Commercial Funding works exclusively with private funders. For more information, visit our website and find one our professionals nearest you....or call me, Brian Walker at 281-852-8298

The truth about appraisers and their role in your commercial transaction

Walker Commercial Funding — Wed, 15 Apr 2009 00:21:21 -0500

In the recent past, nearly 70% of all commercial appraisals were ordered by the banks that were going to fund the project. Now that banks are absent from the performing funding space, many developers are left with the responsibility of ordering an appraisal. Unfortunately, many of the appraisals they order and submit are simply unacceptable to 90% of our funding sources.

As a rule of thumb, if you don't have an appraisal, don't order one. Let the funder that has an interest in your project suggest one that you use. Otherwise, if you want to order your own appraisal, there are few bits of advice to follow:

1) Ask your mortgage broker who they use and have had success with. Be prepared to spend more than what the local guy quoted you. Your mortgage broker is always going to choose an appraiser he or she has had success with and gotten deals funded with, which is your primary objective.

2) If you want to shop yourself, make sure the appraiser is MAI certified. The acronym stands for Member of the Appraisal Institute. It's no simple achievement to get this accreditation. MAI appraisers must meet the following criteria for accreditation:

Receive a passing grade on 11 examinations that reflect 380 hours of classroom instruction and that test the appraiser's knowledge of basic and advanced appraisal principles, procedures and applications; report writing; valuation analysis and standards of professional practice
Receive a passing grade on a four-module, two-day comprehensive examination
Hold an undergraduate degree from a four-year accredited educational institution
Experience: Receive credit for 4,500 hours of experience, all of which must meet strict criteria

3) Anyone that is not MAI certified will perform your appraisal at about half the cost, but...it's a fool's errand because your finder is going to require that you get an MAI certified appraisal. So, you end up paying for two appraisals.

4) Try to find someone that is familiar with your area and project type. This enables them to do them faster and at a lower price.

While this is not the appropriate place to give recommendations, feel free to contact me at my office and I'll gladly steer you in the right direction

Do You Have.....Solar, Wind or Low Income Housing Tax Credits?

Walker Commercial Funding — Mon, 13 Apr 2009 00:54:14 -0500

If you do, we need to talk. There's a very high probability of Walker Commercial Funding being able to fund your project if you do. Please call Brian Walker at 281-852-8298 or email me brian@walkercf.com.

What is a correspondent lender?

Walker Commercial Funding — Tue, 31 Mar 2009 23:36:45 -0500

Many people ask me, is Walker Commercial Funding a direct lender or a broker? That's a tricky question...in most situations, Walker Commercial Funding is a "correspondent lender." So, what does that mean? That means we don't actually lend the money, but we do a lot more than a broker. A broker merely submits the file.

A correspondent lender does all of the activity a lender would do with exception of a) providing the funds to close and b) issuing the final approval.

At Walker Commercial Funding, we completely underwrite the file to the funder's specifications and deliver what appears to be a closed loan. The only thing we are lacking is the final approval that the loan fits within their "funding footprint" and the funds wired....Essentially, we make the funder's job very easy. We deliver files that are in their strike zone that are completely underwritten and ready to close. We even do the site visits.

That is what a correspondent lender is and does.

Hope this helps you all out there in Active Rainland!

Thanks,

Brian Walker

Walker Commercial Funding

www.walkercommercialfunding.com

Great News for International Projects! Walker Commercial Funding is Funding in Mexico!

Walker Commercial Funding — Sat, 28 Mar 2009 15:27:34 -0500

Hey Folks, the ice has finally thawed for funding Mexican projects. I'm very pleased to announce that we will be closing 3 three mexican transactions (one land and two resort projects) on Monday and Tuesday of this week. No, these are not miracle closings. They are just "make sense" deals that should have been funded a year ago when the market just completely locked up.

The good news, however is that funding is happening again..at low LTVs. These projects all have 65% LTC or less, but we can now honestly say that the international funding windows are now open again!

Walker Commercial Funding can be reached at 281-852-9422. We consists of 20 seasoned commercial professionals, speak 8 languages, live on 4 continents and have our own in-house underwiting department.

REFI for properties worth 10M or more and 5M in equity. No Credit Check

Walker Commercial Funding — Mon, 23 Mar 2009 16:12:18 -0500

No Credit Check

No DSCR (it doesn't have to cash flow)

5% interest rate fixed for 3 years

3 Year balloon and no payments for three years.

Call Brian at 281-852-8298 for more info.

wwww.walkercf.com

Walker Commercial Funding funds projects world-wide. But this program is presently restricted to the US. Brian Walker with Walker Commercial Funding can be reached at brian@walkercf.com

New Commercial Refi Program for Properties over 10M with at least 5M in Equity

Walker Commercial Funding — Thu, 19 Mar 2009 21:28:39 -0500

COMMERICAL LOAN OFFER

WE ARE PRESENTING LOANS TO AVAIL AN ALTERNATIVE MEANS TO THE REFINANCE OF COMMERCIAL PROPERTY IN THE USA

The Commercial Lender / Operator that we introduce will refinance your Commercial Property in the United States (mainland) using the following formula;

50% of the Appraised Value

- any/all Debts against the Property

= Equity

X Multiple of up to 10

Wherein, if the Appraised Value of the Property is USD $ 20 Million and fifty percent (50%) of that Value is USD $ 10 Million and assuming there is an unpaid Mortgage on said Property of USD $ 4 Million, then the Equity balance via this formula would be

USD $ 6 Million.

The Lender / Operator will afford a loan of up to ten (10) times the Equity, so assuming upon evaluation, a 5 X multiple is requested and/or accepted then the loan of

USD $ 30 Million (20M x 50% - 4M = 6M x 5 = 30M).

The LOANS are presented as

»5% Interest – Fixed

»3 Year Balloon

»NO Payments for the 3 Years (optional)

»NO Personal guarantees

The MINIMUM Equity against which this type of Loan is offered is USD $ 5 Million.

TO APPLY –

One (1) Page Loan Application (Simple Form Letter. NO form 1003)

Copy of Title Policy

Copy of Current Appraisal

NO credit review, NO personal guarantee, NO lengthy mortgage application.

Please review and advise if you should have any questions or comments.

We look forward to assisting you.

Interest rate is 5% fixed.

· No Raw Land

· US Only

· Must be Brick and Sticks….

· NO DSCR

Walker Commercial Funding www.walkercf.com brian@walkercf.com 281-852-8298

The Truth About 100% Financing in Today's Market

Walker Commercial Funding — Wed, 18 Mar 2009 22:27:35 -0500

Here's the reality about getting 100% financing for commercial projects in 2009. At Walker Commercial Funding, we always tell the truth. The good truth or the bad truth, but it is the truth. So, with that being said, here is the truth about the 100% financing that is currently available:

1. You could get a joint venture partner, but you must have a very attractive project. Please read this article for a more clear definition of what is available in the JV world and what JV/Venture capital is requiring to take on your project. Read This Article

2. You can nearly gaurantee your success by going through a structured finance program. We are master brokers to a firm that specializes in this type of transaction. It is nothing new and the probablity of success is very high if your project is accepted. The firm we work with is both an international law firm and a licensed financial institution. They require a $100,000 retainer and the process takes 12 months to fund. Their competitors charge an excess of $500,000 and don't even provide the collateral to complete the transaction.

3. The other option involves working with our asset managers that will fund your project at 100% LTC, but they will require that you deposit a substantial amount of collateral with them. The benefit to this program is your collateral will generate handsome returns while you get your project financed at 100% LTC.

Rules of the Road for Land Financing in 2009

Walker Commercial Funding — Sat, 14 Mar 2009 22:41:29 -0500

For the last two years, I have seen flyers and rate sheets cross my desk that had a funder's matrix of loans and rates. At the bottom of the sheet in large, bold, red letters I would read, "No Raw Land Submissions." This simply meant that funders were not funding land transactions under any circumstances. No cash-out refinances, no purchases....they just had no appetite for land transactions. Fortunately, we have seen a change in the recent weeks and funders have opened their doors again to funding land transactions.

Funding them is good news. The terms, however, are very narrow and specific. In efforts to manage everyone's expectations, I will give you a broad view of what types of transactions are within our funder's proverbial "strike zone." For US and International properties, the maximum loan-to-value is 65%, which means you would need to put 35% down on a purchase. Additionally, the funder wants to see a business plan showing that you have intentions of improving the property and developing it immediately. The logic behind this is that raw land doesn't generate enough revenue to service the debt payment. Knowing this, the funder is going to allow deferred payments for up to two years.

By deferring payments, they simply bump the loan amount by 24 months of payments, put it into an escrow account and payments are made for you. Yes, you borrowed the money for the payments, but it would be impossible to make payments on land that isn't producing any revenue for you. What happens most often is the funder also lends you enough money to put the infrastructure of your development in, which will increase the value the property by a factor of 30-50%.

Once the developer has the infrastructure in place, he can the go get a construction loan and pay off the land. The good news is lenders are lending again on land. You just need to be prepared to have a strong business plan and begin your project immediately.

Project funding for projects in Algeria, Egypt and Saudi Arabia

Walker Commercial Funding — Wed, 11 Mar 2009 20:27:24 -0500

Hey folks! Traditionally, these geographic locations haven't exactly been funding hotspots, but we now have access to private investors that have interest in funding these locations exclusively...they prefer manufacturing type projects or something more toward the industrial side...if you have any of these projects, please feel free to contact me at brian@walkercf.com or 281-852-8298.

Thanks,

Brian

www.walkercf.com

Financing for failed condo projects...or condo project that can't get funding

Walker Commercial Funding — Wed, 11 Mar 2009 11:31:48 -0500

   The great thing about the American construction developer is that the never give up. In the past 24 months the condo developers have had an impossible time getting financed. Several reasons were overdeveloping, bad price points and just the economy in general.
   In my line of work, I saw lenders advertising their programs and at the bottom of their flyers, in large red letters they would post: "No Condos, Residential Developments, or Raw Land".
   At last, a solution as arrived on the scene of this economic disaster for the condo developer. It's not exactly a condo solution, but it is a solution that a) makes sense, b) serves the market, and c) gets the developers back on their feet and back to work....which ultimately boosts our ailing economy.
   The solution is simple: there is a new funding program in the private sector that is very flexible and very favorable towards mulitfamily projects and apartments. Developers don't have to lie or misrepresent themselves, they simply need to change their unfunded project into a multifamily or apartment project. Same tract of land, the structure can even be very, very similar. It simply cannot be called a "condo" project. The key to success is having a direct conversation with the funder, and sharing exactly what is in place now. The funder will then tell the developer exactly how the project needs to be tweaked in order to fit into the funder's funding footprint.
   The other good news is the rates are fantastic. These are not "hard money" terms, which were the only solutions for these projects in the past.

For more info, call Brian at 281-852-8298

Energy Projects Are Getting Funded with Contract Funding

Walker Commercial Funding — Mon, 09 Mar 2009 17:36:08 -0500

Energy companies are finding new ways to finance their projects in these tough times for project finance. Most banks or traditional lending options require the developer to have a minimum of 30% down...and worse yet, many banks just aren't lending. There is, however, a solution!

Energy companies are working in the spirit of cooperation with their buyers, or "off-takers" and structuring contracts that enable the the developer to be funded in as short as two weeks...and the buyer can even structure the agreement in a way that enables them to defer payments for up to three years. Everyone wins! Most importantly, developers can get back on their feet and begin working again.

There are a few stipulations in order to successfully fund a contract. First, the buyers must agree to "take-or-pay" terms. In short, this is an absolute guarantee to purchase the product. Additionally, the buyer must have good credit. They must have a credit rating by Moodys or Standard and Poors of triple B or better. The other conditions to fund the contract are simple: they must be sum specific, date specific, and dollar specific. It's really that simple. Most government agencies and municipalities meet the minimum rating requirements. Some companies are even using this method of contract funding to fund their tax credits. As long as everything in the tax credit is spelled out as specific dollar, date, and the absolute language is used, the tax credits can be used to fund the project as well.

Walker Commercial Funding Brian Walker http://www.walkercf.com brian@walkercf.com (281)852-8298

Private Equity is Funding Major Commercial Projects Again!

Walker Commercial Funding — Mon, 09 Mar 2009 12:17:21 -0500

It's not as bad as seems...unless you are looking for loans in all the wrong places. Yes, institutional banks are not funding loans and you are on a fools errand by even calling them. We are, however, finding a lot of private equity funders coming out of the wood work....
They like to see a lot equity in the project as well as a strong management team. If you have one of these projects...feel free to give me a jingle at 281-852-8298 or brian@walkercf.com

Private Equity is Funding Major Commercial Projects Again!

Walker Commercial Funding — Mon, 09 Mar 2009 12:09:54 -0500

Banks are NOT lending, but private money saves the day for income producing properties!

Walker Commercial Funding — Mon, 05 Jan 2009 23:36:34 -0600

Without a doubt, 2008 was a bit soft. Banks stopped lending and they probably won't lend again anytime soon. The good news is that there is a natural balance in the liquidity universe....private sources have stepped up to the plate and are now lending - like the banks used to - on income producing properties...so don't panic!

Trillions of dollars will need to be refinanced this year and they will all be done so privately. If you need help on any income-producing property, feel free to give me a call at 281-852-8298.

Have a great year!

Brian Walker

brian@walkercf.com

www.walkercf.com

Solutions for the liquidity crisis...an answer to conduit seekers...it's better than

Walker Commercial Funding — Sat, 23 Aug 2008 05:50:21 -0500

Everyone knows banks have pulled in their reigns and are calling loans due. This isn't because banks are bad guys...they just have maintain a certain level of liquity in order to stay compliant with the FDIC. So, your clients are going to be looking for refi solutions....

We have a solution where everyone wins....the bank simply writes a letter of credit for the loan amount, we pay off the bank, and the bank maintains a 1st lien position on the property...with no debt. The borrower gets a 4.9% insterest rate fixed for 5 years...and out of the 4.9% the borrower pays 1.5% goes back to the bank that wrote the letter of credit.

Now everyone is happy. The client gets a dynamite rate, the bank solves their liquidity problems while still keep the client and all of his precious deposits...

The client must have a great relationship with his bank. We can make everything else happen. For more info, call Brian at 281-852-8298.

Thanks,

Brian Walker

www.walkercf.com

JV Partnership for National and International Projects - No Upfront Fees

Walker Commercial Funding — Thu, 31 Jul 2008 22:34:03 -0500

Must be a solid project 100M or more. Developers must be qualified and seasoned. Please send executive summary, business plan to brian@walkercf.com for review. The funder loves hotel, resorts, casinos and there is no dollar limit on the project(s). Equity positions can be negotiated once approved.

Please feel free to email me at brian@walkercf.com or visit our website at www.walkercf.com. Serioius inquiries only.

Thanks,

Brian

5 day closings on National Hard Money Deals...

Walker Commercial Funding — Thu, 31 Jul 2008 22:29:14 -0500

Super fast hard money. We are direct to the source and can fund in 5 days without an appraisal. Up to 65% LTV...must have a strong exit strategy. No broker chains, please. Rates and points are relatively high, but we do perform...and fast!

Contact Brian Walker at brian@walkercf.com or visit our website at www.walkercf.com

Better than conduit rates for commercial properties 5M and up!

Walker Commercial Funding — Sat, 05 Apr 2008 14:43:29 -0500

The market always has a solutions...sometimes it just takes a little longer than we'd like for it respond....as you all well know, the conduit market is in the dumps...so another program has stepped up to the plate for the conduit borrower....

The new financing is actually better than the conduit programs ever were! Here's what's hot for commercial properties:

As of today, rates on commercial properties with loan amounts greater than 5M are at 4.81% fixed for 5 years...and get this..the borrower can amortize the loan up to 50 years! Incredible, eh?

It's true. Feel free to call me for more information...or email me directly at brian@walkercf.com.

Brian Walker

281-852-9422

www.walkercf.com

International Funding for Commercial Projects Without JV Partners!!

Walker Commercial Funding — Wed, 13 Feb 2008 00:36:27 -0600

International commercial funding has gotten tougher and tougher....but we have access to funding projects 10M and up at 100% LTV in Russia, Australia, China, India, Panama, Bahamas, Canada, Europe, Germany, Costa Rica, Belize, France, Italy, Japan, Honduras, Greece, Spain, Israel, Ireland, Poland, Denmark and lots of other places around the world. Please feel free to call me for more information. I can be reached at brian@walkercf.com or 281-852-9422...or you can even skype me at brian.walker7

www.walkercommercialfunding.com

Finding it impossible to get a rehab loan on a mulit-family loan?

Walker Commercial Funding — Sun, 03 Feb 2008 00:53:48 -0600

Most people have a really hard time with this for several reasons:

1) occupancy is not up to par

2) banks won't lend based on the risk

3) banks and lenders are going to want to see "pre-leased" contracts while your project still looks horrible.

Fear not! I have a funding source that loves these types of projects. Often they are the best deals on the market, but the banks and other lending institutions pass on them for the above reasons. My funder doesn't care. If you are having difficulty getting a rehab/construction loan on a multifamily purchase or refinance. Please call me at my office at 281-852-9422 or drop me an email at brian@walkercf.com

The beauty of this loan is that is a one-time close....you don't have to take out two loans...a construction loan and then a permanent loan.

Good Selling!

Brian Walker

Walker Commercial Funding.

www.walkercf.com

Finding it impossible to get a rehab loan on a mulit-family loan?

Walker Commercial Funding — Sun, 03 Feb 2008 00:45:03 -0600

Most people have a really hard time with this for several reasons:

1) occupancy is not up to par

2) banks won't lend based on the risk

3) banks and lenders are going to want to see "pre-leased" contracts while your project still looks horrible.

The beauty of this loan is that is a one-time close....you don't have to take out two loans...a construction loan and then a permanent loan.

Good Selling!

Brian Walker

Walker Commercial Funding.

100% Financing for international projects of all kinds....

Walker Commercial Funding — Tue, 22 Jan 2008 02:50:02 -0600

International financing of projects is becoming more and more difficult to finance via traditional finance vehicles. We at Walker Commercial Funding have had amazing success at financing the complete construction from the ground up of major resort communities...from local to Costa Rica, Belize, the Honduras and other international projects that are even broader in scope and complexity.

Please feel free to call me with any questions. Serious inquiries only. Brian 281-82-9422. Or check our our website at www.walkercommercialfunding.com

Thanks,

Brian Walker