Michael Schwartz | Commercial Mortgage Broker

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...

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%,...

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...

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...

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...

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...

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...

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...

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...

Commercial Mortgage Lenders approve a Discounted Payoff for special use property in Nevada

Financial Compound, on behalf of a long-standing client, arranged for a $1 million reduction in prepayment penalty so that our client could more easily sell a special use property. This special use property was encumbered by an approximate $11 million first mortgage loan. Financial Compound worked with the borrower’s Commercial Mortgage Lenders to facilitate this...

Commercial Mortgage Lenders and Swap Spreads – Getting Esoteric to understand the credit ramifications

Commercial mortgage broker Financial Compound is please to present here the culmination of three years of its research into swap spreads. Swaps spreads are a measure of risk in the credit markets. The higher the swap spread, the bigger the credit risk in the market as perceived by market players. Its easier to understand how...

Commercial Real Estate Loans – Land

Financial Compound has arranged a $23 million unentitled land refinance for a 5,000 acre land assemblage in a southern California coastal plain. The assemblage is to be developed into a low density exclusive community with a few thousand acres of private preserve, signature golf course, club-house, spa and equestrian facility. This refinance pays off the existing...