Financial Compound and its staff have closed over $2.4 Billion in transactions running the gamut from low leverage first mortgages on trophy assets to structured debt and equity placements for properties in of renovation, to construction and unentitled land financing.
For example, we assembled a 100%-of-all-in-cost financing package (including land, hard and soft improvement costs, interest reserve, and closing costs) for the developer of a shipping center with minimal pre-leasing. The transaction was crafted so that the developer kept all the upside after a 7.5% IRR to the financial partner.
Commercial Brokerage Philosophy
As your commercial mortgage broker, we will obtain preliminary financing terms for a transaction and then evaluate the options in light of the client’s objectives and makes a recommendation. Financial Compound will always provide an ‘apples-to-apples’ comparison of each financing proposal by quantifying financing terms such as amortization methods, promote and waterfall structures, escrows, holdbacks, lender fees, defeasance, and other prepayment penalties, etc. As your commercial mortgage broker, Financial Compound’s work ethic, attention to detail, and passion for the business- characterized by customer service minimizes the client’s involvement with processing and paperwork and has helped us enjoy a strong client retention ratio.
Our Commercial Mortgage Broker Practices
- Sharing transaction pricing and structuring information in an organized and cooperative way to help keep our staff abreast of capital provider preferences, new financial products, and “hot money”,
- Utilizing state-of-the-art computer infrastructure and information management systems to organize and work with transaction records efficiently; as well as to safeguard client confidential data
- Utilizing and enhancing numerous proprietary templates we created in Excel (i) that model abstruse financial and mathematical concepts in a simple and understandable way, and (ii) are used for transaction processing efficiency.
- One of our staff members wrote a book entitled “Real Estate JV Equity Modeling in Excel.”
- Weekly brainstorming sessions for a few minutes at each staff meeting regarding transaction processing and efficiency, and (6) reading and discussion of trade magazines and finance journals.
Financial Compound’s Brokers Solve Problems
The Financial Compound logo is pronounced, “aleph to the root of pi”. The Financial Compound logo is pronounced, “aleph to the root of pi”. Our logo challenges us to pursue creative and innovative solutions to real estate finance problems which is the basis of our brokerage business. Aleph is a math symbol used to express the cardinality, or size, of infinite sets as pioneered by Georg Cantor, a prolific mathematician in the late 1800s. The cardinality of a set of 3 people at a dinner table is 3, and the cardinality of the set of 100 people at a movie theater is 100. Cantor discovered that infinite sets can have different cardinalities.
Pi is an irrational number. It’s the relationship between the area and radius of a circle, equal to approximately 3.14159…. with digits continuing forever and never repeating a pattern. One cannot point to pi on the number line. We can point to a rational number very close to pi, such as 3.1416, but we can never pinpoint pi or any other irrational number.
One of Cantor’s set theory conclusions is that there must be an infinitely greater amount of irrational numbers compared to rational ones, as there is always an infinite amount of space for numbers between any two points on a number line, no matter how close together they are. Yet mathematicians have only discovered limited amounts of irrational numbers to date. Some mathematicians have driven themselves crazy searching for the next irrational number. So let us not get carried away thinking about it for too long.
Math and Real Estate Capital Markets
So what is the pieth root of aleph and how does it benefit those who need a commercial mortgage? Well, Financial Compound understands that it’s approximately the cubed root of aleph, which is equal to about aleph. And this helps our clients due to the fact that Financial Compound uses intricate conceptual ideas in order to stay abreast and a step ahead of the capital providers’ preferences by understanding all of the mathematical aspects of the real estate capital markets, sometimes using a different notation such as aleph and pi. Bottom Line: Our pursuit of this knowledge directly benefits our clients in the form of lower financing costs and cutting-edge transaction structures.
