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By

Michael Schwartz

Tax Lien Financing

Financial Compound arranged a $28 million credit facility for single family tax liens in the Northeast.  Financial Compound, with the help of our borrower, an experienced operator in the tax lien industry, demonstrated the low level of risk (15% LTV) for this credit.  Other terms included a cutting edge interest rate, interest only, close to 100% LTC,...
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Commercial Mortgage Lenders:  Land Acquisition Loans in Washington State

$19 million in land acquisition financing (95% of all-in-cost) was provided for this 1,600 acre semi-entitled residential single family lot land assemblage, which is part of a larger, 3,000 lot SFR master planned community.  To-date, about 500 lots have been built. The community includes two new 18-hole championship golf courses.  The loan proceeds funded 95%...
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Construction Loan for Los Angeles Car Wash

Financial Compound obtained a $1.6 million construction loan for an express car wash in Los Angeles.  After the borrower’s application with a conventional lender fell through, Commercial Mortgage Broker Financial Compound was able to quickly secure a private money lender.  The quick closing allowed the borrower to maintain its construction schedule as the private money...
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Commercial Mortgage Lenders: Debt Yield and Mortgage Constant

Debt yield, the ratio between property NOI and loan amount, has become a primary underwriting characteristic for commercial mortgage lenders.  Interestingly, debt yield does not take amortization into account, which plays a factor in the borrower’s ability to make mortgage payments.  For example, a property with $900,000 NOI and a $10 million loan request with...
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Apartment Finance Loans

Currently Financial Compound is a leading commercial mortgage broker closing structured apartment loans. Financial Compound is able to obtain cutting edge financing terms for apartments loans that many DUS FNMA and Freddie Mac lenders will not make.  With interest rates between 5% and 7% fixed for ten years and loan to value up to 80%,...
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Structured Refinance

$2,850,000 additional funding.  A longstanding client approached us with a few different projects wondering the best way to achieve the borrower’s ends of obtaining cash-out refinance proceeds. Commercial Mortgage Broker Financial Compound worked with the borrower and lender and determined that an additional funding on a loan we had completed 2 years ago was the...
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Commercial Mortgage Lenders – Can Sanford and Son and Institutional models coexist?

For a portion of commercial mortgage broker business flow, we can be thought of as the Sanford and Son of the mortgage brokerage industry.  We finance many deals that others have left for trash and deemed unfinanceable, at a clip of approximately $100 million per year.   Applying a Keynesian multiplier to this volume of closing...
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Commercial Mortgage Real Estate Loans: Special use

Commercial Mortgage Loan refinance was arranged by Financial Compound for the $7.3 million refinance of a golf course located in southern California.  With a property cash flow of $450,000 annually, this refinance is worth bragging about whether or not it took place during the credit crunch, which it did.  The lender required a couple of mild...
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Commercial Mortgage Loan Workouts, Modifications and Distressed Refinances

Financial Compound has the skills and track record to assist borrowers and lenders with commercial loan workouts, having performed numerous successful modifications in a distressed context.  We have resolved complex financial problems with our proven methodology and helped the parties determine the best course of action.  With Financial Compound no up-front fees are required and...
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Commercial mortgage loans for real estate: Acquisition loan

This $14 million acquisition loan for a midrise office building in the Southeast  fell out of escrow 5 times with other buyers before Financial Compound began working on the deal.  We assured the selling broker that our client would close within the 20 day escrow period, after completing our preliminary analysis of the project in 2 days.  Through diligent up-front research we determined...
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Covid 19 and Commercial Real Estate Financing

While many lenders have pushed the pause button during Covid 19, the commercial real estate financing scenario is significantly more robust compared to the credit freeze in the 2009 recession. With historically low rates now is a great time to borrow. Commercial mortgage broker Financial Compound is currently processing about a dozen loans in the...
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Commercial Mortgage Lenders: Hospital Refinance in Southern California

Financial Compound performs a $7 million hospital refinance for a hospital in southern CA.  The refinance was part of the borrower’s re-organization plan as it emerged from Chapter 11 bankruptcy.  The property includes approximately 100,000 s.f of 1960s construction and is occupied by two tenants.  The first tenant, comprising about 70,000 sf was also in...
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