Leveraged Alternative Capital Assets Master04232011

Leveraged Alternative Capital Assets Master04232011

• 1.
  Leveraged Alternative Capital Assets We Help Banks and Business Owners …. Make The Right Connections Leveraged Alternative Capital Assets Locates Financing for a Wide-Range of Projects and Business Needs, Primarily from Private Equity Sources, as well as Traditional Sources. Clyde Leverett – Principal
• 2.
  Why Is AlternativeFinancing Needed? Commercial Loans you Expected to get from your Local Bank in Many Cases are No Longer There due to: 1) Banks Being Nervous About An Uncertain Economic Future 2) Significant New FDIC Restrictions
• 3.
  FDIC Bank LoanRestrictions Capital Bank Investment x Capital Requirement = Bank Loan Making Capacity Bank Loan Capacity - Example: • Banks can only lend money based on capital at hand • Bank has a 5% Capital Requirement • Capital Base of Equity of $100M • Maximum Loan Capacity $100M divided by .05% = $2B * Capital Base of Equity Divided By Capital Requirement
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  Originations by CommercialBanks are Declining Year over Year and here’s why …. •3 years ago FDIC Capital Requirements for Mid Sized Banks = 3-4% • Real Estate Values Fell – FDIC Capital Requirements = 5-12% • Result = Significant Restriction on Bank Loan Capacity • Same Bank as in Previous Example has $100M in Capital • $100M Capital x 12% Requirement = $833M Loan Capacity
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  What Does AllThis Mean “Capital Is Available” – “But Many Will Still Not Qualify” We Can Potentially Help Many Businesses 1. Educating and Assisting Businesses • Who and What Is Getting Funded 2. Locating Alternative Funding for Businesses • Who Can Not Obtain Funding Due to Underwater and Underperforming Commercial Assets
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  Our Mission isto Find the Right Funding at the Right Price from the Right Lender as Quickly and Simply as Possible for our Borrower/Client. The Phrase "TIME IS MONEY" is Most Applicable in the Loan Application Process. Secrets to Quickly & Simply Secure Business Funding 1) Knowing your Potential for a Loan “Up Front” 2) Knowing What Programs & Loans Are Available To You 3) Knowing What Is Needed In A Professional Loan Request 4) Knowing Who Has Money & Who is Lending!
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  We Make TheRight Connections We Locate Financing for a Wide-Range of Projects and Business Needs, Primarily from Private Equity. Service Offering Multi-Family: Small Balance Commercial Loan Credit Card 1) Refinance Business Loans / Modification Receivable 2) Cash Buyers Credit Lines Program Financing Bank Turndown Discount Note Medical Practice Bridge Funding / Program Purchase Program Loans Hard Money Christian Church Alternative Energy Hotel / Motel Retail Projects
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  Recent Funding Examples “Cash Purchase” – Apartment Complex Purchase of 10 Multifamily Properties / $9M Multifamily Refinance SBA Refinance of a Vending Business Principal Reduction & Conversion – Hotel New Financing for a Sports Complex $350,000 Purchase Order Converted Ground Fields to Mini Storage Units
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  Converting “Turn Downs” Into“New Opportunities” Bank Turn Downs Could Turn Into: a) Loans b) Discounted Note Workout c) Loan Modification d) Short Sale
• 10.
  Examples of Current“Growing Trend” Opportunities * Almost any Business Owner with 5+ Employees * Multifamily Owners Who Are Upside Down * Retail Center Owners Who Are Upside Down * Hotel / Motel Owners * Multifamily Property Owners * Business Owners Who Have Business Loans Secured By Real Estate - with Cash Flow Problems
• 11.
  Our Unique “SaveTime & Money” Approach To Effectively Matching Borrowers & Lenders Let’s You Know On Day 1 of the Loan Request Process: * What Documents Are Needed & What Fees To Expect * Timeframe for the Process & What Pitfalls To Expect * Potential Lenders Interested In Your Request * Cash Flow Tests That Underwriters Perform To See If The Subject Property Can Satisfy The Loan
• 12.
  5 Components Consideredfor Providing Businesses with Capital to Grow Their Revenue 1) Type of Business 2) Geographic Location of Business 3) Economics of Business 4) Collateral for Loan 5) Financial Strength / Creditworthiness of Sponsor
• 13.
  Different Types ofFinancial Solutions for Different Types of Businesses There are Many Different Types of Businesses, and Will be Assessed Differently. There is Not an Exact Science. Example: A Multifamily Property Can Be Potentially Financed with the Following Programs: Fannie Mae, Freddie Mac, Bank Financing, HUD/FHA, Life Insurance, Hard Money, Private Money, and more….
• 14.
  3 Words ThatOften Impact Loan Decisions Location, Location, Location Location Geography Has A Lot To Do With Loan Placement Example: * Many Lenders Only Will Lend In Certain States, Some Only in Major Metro Areas, Some Only Rural, etc….
• 15.
  Business Economics 1) IsBusiness Increasing or Decreasing Over Last 3 Years? or… 2) Is Rental Income Increasing or Decreasing? 3) How Is Business Credit? 4) Have Loan Payments Been Made On Time? 5) What Is The Net Operating Income of the Business?
• 16.
  What Will CollateralizeThe Loan? If the Business Owns Commercial Property, the Loan Will be Collateralized by the Property and the 2 Evaluation Factors will be: 1) Can the Income from the Business Pay for All the Expenses Including the Mortgage Payments, with a Little to Spare and … 2) If There is a Default on the Loan, What is the Market Value of the Property so the Lender can Recoup the Loan.
• 17.
  Sponsor Financial /Credit Strength While Still Not the Focus of Commercial, the Sponsor or Loan Guarantor is Becoming a More Important Factor and Will be a Consideration in Lending Decision. ***** Credit Scores of 680+ and Some Financial Strength is a General Rule of thumb.
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  Maximizing the Potentialfor Success of the Borrower’s Loan Request We’ll Put Together a Very Professional Loan Request Package. Such Professionalism Does Much to Enhance the Borrower's Chances for Success in the Loan Process. ***** Our Systematic Approach Will Save a Significant Amount of Time, and in the Financial World "TIME IS MONEY“.
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  Trusted Business PartnerTo Banks As Well As Borrowers We also Help Banks Maintain Relationships with their Clients by Helping them Get Funding for Projects that they are Unable to Fund Through their Traditional Channels.
• 20.
  We Provide aUnique Alternative Funding Resource for the Unique Loan Underwriting Guidelines Restricting Bank Loans Today * More Stringent FDIC Requirements * Lenders Tightening Underwriting Requirements * REOs Too Large / Will Take Time To Digest * Banks and Lenders Don’t Want to Own Real Estate * Yet Banks Need To Retain Assets & Client Deposits
• 21.
  Our Unique LeveragedAlternative Capital Assets Program Provides A Win-Win-Win Solution. Borrowers Win: Receive Needed Business Capital Banks Win: 1) Retain Assets and Deposit Base 2) Maintain Strong Customer Relationships We Win: More Raving Fans
• 22.
  How To GetStarted • Submit A Quick and Easy Online Request • Mail or Fax Qualification Analysis Documents • If You Are A Local Business - We’ll Meet With You • Call Us For A Free Qualification Analysis Consultation
• 23.
  Whether You AreA Borrower or a Lender With a Loan “Turn Down” Give Us A Call For A Free Consultation Leveraged Alternative Capital Assets Clyde Leverett – Principal 302-223-6296 [email protected] www.leveragedalternativecapitalassets.com