Happy New Year! CRE rates continue to be low.

Great rates on both 5 year and 10 year fixed loans. 5 YEAR fixed money at 4.95%, 10 year fixed money at 5.90%.

Please note, all owner-user conventional loans are now eligible for SBA 504 refinancing.

Here are a few program highlights:

• Owner-user and Investor CRE programs > $250k
• SBA 504 and 7(a) financing for most states – rebates up to 2% on SBA 504 (SBA 7a financing for hotels/motels and gas/c-stores)
• Multi-family financing in most medium and large cities – all 50 states – rates starting @ 4.25%
• Bridge to perm financing in 30-45 days – excellent for borrowers who are getting pressure from their current note holder to take them out
• CMBS programs above $3 million
• Quick deal analysis and LOI within 24 hrs if we are interested in the deal
• 1-4 Family Stated Investment
• Stated Commercial Up to $3 Million

Please feel free to contact me with any questions regardless of the deal type.

With The 23 Ventures small balance loan program, less is more. By starting and closing with us, we provide more efficient and quicker process for funding small balance loans.

Product Type:
Purchase, Refinance, and Refinance with cash out.

Property Type:
Multi-Family (5) Plus units
Mixed-Use
Office & Retail
Motels
Mobile Home Parks
Warhouse/Light Industrial
Garage & Auto Repair
Churches & non Profit

Program Types
Full and State Documentation

Highlights
Loan Amounts form $50k to $3 MM
LTV up to 75%
Credit as low as 600 Fico
Fixed and Adjustable Loans
Rate as low as 8.5%(Lower on Better Credit Risk)
States Offered: National

23 Ventures is now expanding into the small balance arena to include 1 to 4 unit investment properties. This program is ideal for the investor looking to expand their investment portfolio to include 1 to 4 unit dwellings without the stringent banking policies for non owner occupied residential properties.

PROPERTY TYPES AND CONDITIONS:
multi-family 1 to 4 unit dwellings
non owner occupied/investment
must be owned in corp or LLC name

HIGHLIGHTS:
Loan Amts $50K to $500k
Full and Lite Doc Options
600 Middle Fico Score
25 year amortization
LTV’s up to 65%
Cash out Available

Financial distress isn’t always the result of extravagance, greed or even poor judgment. Entrepreneurs make business decisions based on the best information available. And while misfortune is part of being an entrepreneur, the ability to adapt to misfortune is the difference between success and failure. 23 specializes in comprehensive commercial debt restructuring and resolution for clients whose financial model has been devastated by unsustainable debt service payments that no longer reflect the economic reality of the asset used to secure the debt. For some of our clients, all they need is an experienced negotiator to provide their lender with the reality of the financial situation and the tool set to restructure their obligations. For other clients, we may assist in the replacement of the debt from a bank to a private funding source. Our team of professional advisors has successfully negotiated client obligations totaling over $4 billion in liabilities with every major national and super-regional bank, as well as numerous community banks and non-bank lenders.

The 23 Difference

Ethics

23 conducts business with a level of honor and honesty that allows us to achieve the most beneficial resolution of your problem, while preserving the respect and position you’ve worked so hard to build in the community.

Compassion

The emotional toll of dealing with financial distress is equal and sometimes greater than divorce or the loss of a loved one. It may feel as if your world is upside down, and you are coming apart at the seams. This is normal, things will get better, and you are not alone. Helping clients through emotional turmoil is an important part of what we do. We provide each of our clients access to an independent licensed therapist or executive coach to help our clients and their families cope with financial stress.

Fees

Our fees are competitive for what we provide, which is a high quality, tailored, specialized service that saves you money. We establish our fees upfront, so that our clients can plan proactively for what lies ahead, and financially justify our engagement.

Word-of-mouth campaigns can be a valuable tool in your business's overall marketing strategy.

They often generate quality referrals because customers rely on recommendations from trusted sources more than they do from advertisements. Additionally, the costs associated with running a successful word-of-mouth campaign are usually a fraction of what a traditional advertising campaign can run.

But what you save in dollars spent you will need to replace with time and effort. On top of delivering the highest quality product or service possible, you'll need to plan and execute a schedule of networking events that will put you in front of people and begin to build your credibility.

Below, I've assembled a list of 10 credibility-enhancing materials that you should have at your disposal in order to make the most of every networking opportunity and ultimately build a successful word-of-mouth campaign. Not every item should be used at the first point of contact with a potential client or someone who can refer clients to you.

via Ten Must-Haves for Better Word-of-Mouth Marketing - Fox Small Business Center.

When you’re self employed filing a Schedule C with your tax return, your chances of being audited are greater than if you were a wage earner.

Why? Because the IRS suspects that you will attempt to either hide income or write off personal expenses as business deductions. Let’s face it, if all you are reporting on your tax return is income from a W2, what’s there to audit? Even if you input the numbers wrong, the IRS will match it up with the copy it got from your employer and send you a correction letter along with an adjustment to your refund or tax liability. According to various reports, audits of the self-employed are on the rise, here’s what you can do to keep the taxman off your back:

via Five Audit-Proofing Tips for the Self Employed - FoxBusiness.com.

I found this to be a great article. Some very good advice the most savvy self employed person should follow.

 In todays lending environment every Realtor, adviser, accountant, and Lawyer needs to  provide his or her clients with options.

 That is why I have partnered my company with Franklin Mortgage in Milford MA.  Nick treats his clients with unparalleled service, honesty, and integrity.  

Franklin Mortgage Provides:

1.    Access to the best lenders
2.    All the programs
3.    Excellent rates
4.    Excellent communication
5.    Fast answers
6.    Great Advice
7.    A since of Humor

So either give me a call directly or give Nick a call at 508-634-8885. Or you can go to his website.

Here is some update info on our commercial loan offerings

NEW
* Commercial Construction up to 75% LTC- Extremely Competitive Rates
* Commercial Conventional Loans 75% LTV
* Private Money Rehab/Developer Loans-Call for Details
 
 Here are a few of other program highlights:
 
* Owner-user and Investor CRE programs > $250k
* SBA 504 and 7(a) financing all 50 states –(SBA 7a for hotels/motels and gas/c-stores)
* Multi-family financing in most medium and large cities – all 50 – rate starting @ 4.25%
* Bridge financing in 30-45 days – for borrowers who are getting pressure from their current note          holder to take them out. Can goto 90% of as/is value
* Strong lending programs above $5 million
* Quick deal analysis and Term Sheet within 48 hrs if we are interested in the deal
* NEW- Debt Restructuring Program- Experience with every major and regional Bank
* Discounted note purchase financing-We also have a pension fund looking to Buy $100 Million a Month
* Venture Capital- We can cover most sectors including Tech and Energy
* CMBS
 
Please feel free to contact me with any questions regardless of the deal type.

More than $1 trillion of commercial property debt is coming due over the next five years with no reliable liquidity available to refinance. Much of the collateral securing this debt is worth substantially less than the current principal amount outstanding. With liquidity at an all time low and collateral values also approaching inflation-adjusted all time lows, many distressed commercial property owners7 operators will be facing the very real prospect of defaulting on the secured commercial debt obligations.

America is at a commercial real estate cross-road. lenders must get back to the business of lending to property owners/operators and entrepreneurs. Commercial property must be put to use, and not sit vacant.  honest, hard working property operators need a better   walking away form their commercial property because their lenders don't seem to have an interest, experience or incentive to restructure their loans to benefit all parties involved.

If you find yourself in a position where your property 's debt balance is greater than its value or your rental income is not covering the debt payments, taxes and costs of the property- you need to be proactive and avoid the common mistakes that many entrepreneurs make when they find themselves in a financial distress.

1. Ignore the the problem and assuming it hoping that new business will solve the problem.

This is easily the common mistake, and most important to avoid. given the amount of sublease space currently on the market, th long term outlook for office vacancy in not expect to fall below 15% anytime soon. Industrial and retail vacancy rate are not faring that much better. Right sizing your business and debt to the current market will not only provide short term liquidity, but will allow you to position yourself for tremendous upside if the economy picks up.

2. Diverting cash form personal asset or assuming more debt to fund poor performing property or signing personal/spousal guarantees on pre-existing debt.

This is the second most common mistake, and possibly the most costly. Debtor protection laws vary by state, but every state debtor protection for certain retirement accounts (401k, IRA...) and no entrepreneur should consider taking on further debt to fund other debt without the advice of legal counsel and experienced debt resolution specialists. Th most difficult conversation we typically have with clients we have is unraveling the short-term fix they were compelled to undertake by the bank.

3. Liquidating assets at fire sale prices to fund debt service.

Forced with an exaggerated fear of foreclosure, many entrepreneurs start liquidating assets quickly to make payments. Because of time pressures, they are not able to ensure an orderly sale and end up receiving far less then they might have gotten if they had sufficient time to list their assets. With the support of legal council and an experienced debt resolutio specialist, the bank is likely to be more flexible on the timing of your payment, allowing you both to get the most value.

4. Negotiating n your own, without speaking out legal council or an experienced debt resolution firm.

Banks are willing to negotiate, but their first position will always be to collect the principle, interest and penalty charges. Even when they appear willing to negotiate any proposal they make will always be higher than the ultimate proposal negotiated bay an experience debt resolution firm they have already work with. Some debt resolution firms have access to private capital, allowing the entrepreneur to purchase his/her loan at a discount form the original lender. Working with legal counsel and experienced debt resolution firm will ensure that your resolution maximizes your debtor rights, minimizes your tax liability and allows you to get back focusing on growing your business, instead if being distracted by your debt.

Avoiding the mistakes above and having a plan to restructure your business are the best strategies to survive and thrive in this challenging economy. The solution to the commercial real estate crisis wont come from Washington, but through collaboration between entrepreneurs and lender, each giving a little ot ensure that both have the opportunity to do business together in the future.

WHAT?

What takes commercial deals so much longer than residential loans to close? Rare is the commercial loan that closes in less than 1 month and the rate for those quick-close deals is much higher. Small commercial loans will usually take 2 months and large commercial loans can take as much as 4-6 months or more! Many factors go into this-the appraisal, the broker themselves, the title, and especially the borrower. Let’s start with an appraisal. It will rarely be ordered before the loan is approved and the borrower has committed. This could be weeks into the deal.Once ordered, an appraisal on a commercial property will often take a month and it could be longer if the property is large and has mixed use. That is because the land under the commercial property is just one part of the equation. The properties value ultimately will be determined by its’ cash flow. The appraiser of a commercial property has to get the financials on the property and compare it to similar properties in the area. If my apartment complex is 80% rented and the average complex in the area is 85% rented it will effect my appraisal. How the property has been managed is important. How quickly the appraiser can get that information is important. The appraiser often must contact an owner and get information direct from them. It is not as easy as pulling up an MLS listing. Don’t trust someone who says they can turn a commercial appraisal in less then a week like a residential appraisal. That person does not understand commercial.

You must be careful in choosing a broker or banker to help you. A broker often can drag the file because they do not get the information needed up front. If my apartment complex is running 30% vacant compared to most places running 25% vacant then I need to explain that and have a business plan ready that explains how I am going to change that. Most brokers will send a deal in with a residential loan application filled in, a credit report and two years tax returns and think the loan can get approved. Then when asked for the stuff that is really needed-3 years operating statements, business plan for the property, etc. they balk at getting it. The loan will never get approved just based on 2 years tax returns and a credit report. Why? Because the property is the most important factor. If you get the right documents in a timely fashion, however, then your loan will move through much quicker and actually have a chance of getting approved. Because title on commercial property often involves such things as environmental and zoning issues, it can take 30 days as well. One 10 Million dollar deal got hung up on environmental issues for 3 months! The more complete the information up front-the quicker you can close.

Finally, the other big drag on commercial closing times is the borrower-and I don’t just mean dragging on getting documentation. It is important to remember time frames, if you are under contract, you have 45 days of underwriting and appraisal time from the time you stop shopping, provide everything, and commit to a lender. You CAN’T SHOP A COMMERCIAL LOAN UNTIL THERE ARE JUST 30 DAYS LEFT! If you do, you will end up with a high rate, quick close loan, or asking for an extension and risking losing the entire property if the seller got another offer. It is not worth losing out on a property that will yield you thousands of dollars of profits in a month over 1/8th percent in rate which may mean $50 a month saved! Don’t be penny wise and pound foolish. Understand the time frames and operate appropriately.

At 23 Ventures LLC., we are committed to your profitability. We offer:

• Free up front analysis
• The fullest range of products
• Weekly updates every Friday so you know what is going on
• Experienced commercial experts that know how to get deals done
• We literally shop hundreds of lenders to get the best real deal for you
• Fast answers
• Creative financing and best of all
• We guarantee our commitments. If we do not get you closed at the terms on your commitment letter we refund your upfront deposit. You lose nothing but gain everything!

I hope this blog has enlightened you and helped you. Give us a call if we can ever be of assistance.

WITH RATES AT HISTORICALLY LOW LEVELS and the ECONOMY POISED FOR
IMPROVEMENT there has NEVER been a better time to buy commercial property! I wish you the best.