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THESE ARE CHALLENGING TIMES. TO SUCCEED,
IT'S A MATTER OF "WHO" YOU KNOW
It is true. Times are tough. There are the many who promote they can do the "deal" at 100% LTV. Now, I'm talking about commercial loans here. Common sense tells you there are no financing products out there that can secure you a commercial mortgage at 100% LTV. Period! It simply does not exist. Don't be fooled by those folks who tell you to put 10-15% down in an escrow account and they will secure you all the financing you want. Do you really believe that? If you do, then it's time to sell you land in Florida!
The commercial mortgage market has basically remained the same for many years. You must always put some of your own equity into the deal yourself. About the only thing that has changed are the LTV approvals have been reduced, downpayment funds may need to be seasoned, and most lenders are ordering their own appraisals. Of course, the property must cash flow and have a good DSCR.
I believe the marketing people promote 100% financing because it is an "attention getter". I got yours, didn't I? So where do you separate truth from fiction? Who is blowing smoke in your face? That is the $10,000 question. The purpose of my blog here is to help clear the air once and for all. I am presuming you have reviewed my site to a certain extent and have managed to extrapolate what we're all about. If not, please go back and read my site some more. It is there to educate you. Open your eyes ladies and gentlemen to the new school of thinking. The new way of doing business. The only way of doing business if of course, you're a little short on dinero.
My company has developed the only true 100% LTV financing product on the market today. Well, it is not a miracle pill for all cases, but should fit the bill for the ones that do qualify for the EquiFund Program. The solution is simple. The property needs to have a strong "equity" position to equal the amount of equity capital you need in order to meet the lender's downpayment requirements. Don't worry! We're there with you from start to finish insuring you make it to the closing table. Just listen, follow our advice and protocols, use our consultants and you will be okay.
Bancofino originates the primary mortgage loan to a participating EquiFund Lender. The package will be prepared well with all relevant information the lender needs to issue a LOI. Keep in mind, a well drafted purchase contract is the key element to securing seller acceptance. It takes quite a bit of time, money and energy to get to this point. Do not rush and don't be trigger happy just to submit a deal. It's your earnest money on the line and protect it wisely. I have seen many deals go south because buyers have miscalculated the targeted value of the property or received reduced LTV approvals forcing them to bring additional funds to the table, money they do not have. Take your time investors! Patience is a virtue.
Okay, so you went through the all the hoops and motions as instructed and followed all protocols as noted. Now what? The result is you will be submitting an offer to the seller that encompasses the equity needed for your EquiFunds that is supported by an appraisal. The seller does not lose money by participating in the Program and usually accepts the offer. Remember, educating all parties to the transaction about the EquiFund Program is crucial to a successful closing. There you have it folks. Bancofino originates the primary loan and Federal Funding funds the difference with equity that equals 100% financing. Contact me if you need to get started with the Program. I welcome your business!
Richard David
Federal Funding, LLC
richard@fedfund.us
Commercial Investment Advisors • Loan Originators • Equity Lenders
www.fedfund.us
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