IDENTIFYING SMALL BALANCE COMMERCIAL LOAN OPPORTUNITIES

Transcription

1 IDENTIFYING SMALL BALANCE COMMERCIAL LOAN OPPORTUNITIES Rebecca Kasow VP, Commercial Lending November 7th, 2017 Nexera Holding LLC dba Newfi Lending

2 Managing your webinar interface Your Participation Open and close your control panel To join audio: Choose Computer audio to use VoIP Choose Phone call and dial using the information provided Submit questions and comments via the Questions panel at any time during the presentation. Note: Today s presentation is being recorded and will be provided in 24 to 48 hours. 2 Nexera Holding LLC dba Newfi Lending

3 Agenda Why do small-balance commercial? How to identify opportunities Property types Borrower types & motivations How to build leads Top referral sources How to market yourself How to handle objections How Newfi Wholesale can help Resources & contact information 3 Nexera Holding LLC dba Newfi Lending

4 Why do Small-Balance Commercial? Build and diversify your business Take advantage of market forces Residential going down Rate increases mean decline expected in residential refi market Commercial going up MBA Commercial Real Estate Finance (CREF) Outlook Survey 2017 reported that loan officers expect commercial loans to increase by 5% Flexible compensation opportunities It s easy! We are your partner every step of the way 4 Nexera Holding LLC dba Newfi Lending

5 Identifying Opportunities: Properties to Target Multi-Family Housing with 5+ Units Blanket loans on multiple 1 to 4 unit Multi-Family Office Buildings Retail Mixed Use Residential Mixed Use Commercial Light Industrial Mobile Home Parks Storage Facilities Automotive Warehouse 1 to 4 Unit Multi-Family properties (business purpose only) 5 Nexera Holding LLC dba Newfi Lending

6 Identifying Opportunities: Properties to Avoid Hotels and Motels Nursing Homes Rural Properties Churches Some Single-Tenant Investor Properties E.g.: restaurants, liquor stores, pot dispensaries, franchises 6 Nexera Holding LLC dba Newfi Lending

7 Identifying Opportunities: Other Red Flags Rural location Heavily deferred maintenance Occupancy issues (high vacancy rate) Short-term leaseholders 7 Nexera Holding LLC dba Newfi Lending

8 Identifying Opportunities: Borrower Types Owner-Occupier Borrower who will do business in the property Small- to medium-sized business May currently rent space in which they operate May own space and need to refinance Building essential to business success (location, type, etc.) Investor Borrower who will NOT occupy the property May be first purchase or adding to portfolio May be inherited 8 Nexera Holding LLC dba Newfi Lending

9 Borrower Motivations: Owner-Occupiers Purchase location for business Purchase additional location Refinance to reduce debt and increase cash flow Refinance to replace maturing balloon loan Refinance to get cash out Debt consolidation Equipment purchase Operating capital Partner buyout Acquire other properties or investments Fund other business needs 9 Nexera Holding LLC dba Newfi Lending

10 Borrower Motivations: Investors Refinance existing property Diversify portfolio Refinance in anticipation of balloon payment on existing commercial real estate property Consolidation Refinance to get cash out Return of equity Buy additional properties 10 Nexera Holding LLC dba Newfi Lending

11 Building Leads: Borrower Shopping Process Typical borrower profiles Real estate investors Small- and medium-sized business owners Above borrowers who have had difficulty finding traditional financing Where do they find financing? They ask friends or trusted advisors These trusted advisors are your referral sources They DON T go online, they don t read the newspaper, they don t look at print ads 11 Nexera Holding LLC dba Newfi Lending

12 Building Leads: Types of Referral Sources Top 2 referral sources Existing Clients Banks and Credit Unions Other sources Appraisers Realtors CPAs Origination Colleagues Financial Advisors Local/National Organizations 12 Nexera Holding LLC dba Newfi Lending

13 Referral Source Focus: Existing Clients Check the REO section of 1003s who owns commercial properties? Maturity Date Payment Number owned/financed Questions for self-employed prospects DO you own the building you operate your business out of? DO you rent or own your current space? Get to know their friends and business associates Who is their accountant/lawyer? If I have any questions, can I call the accountant listed on your tax returns? 13 Nexera Holding LLC dba Newfi Lending

14 Referral Source Focus: Banks and Credit Unions Many banks & credit unions have commercial opportunities they can t service A referral to another commercial lender could replace/impair the relationship They want to keep the deposit THEY DON T RUN THAT RISK WITH YOU! You are doing them a favor by letting them keep the relationship Reasons a bank/credit union can t do a loan Location (out of service area) Property type (too concentrated or credit policy) Restrictive underwriting Time Not profitable 14 Nexera Holding LLC dba Newfi Lending

15 Building Leads: How to Market Yourself Be focused! Choosing a specific target saves time and money Focus on a type of property, type of borrower, or referral source Top marketing channels Online social networks (LinkedIn) Update your profile saying you offer SBC Join relevant groups Follow industry publications Repost industry relevant articles Smile and dial Local events & organizations E.g.: CBA, CREW 15 Nexera Holding LLC dba Newfi Lending

16 Building Leads: Handling Objections Pricing: commercial loan sticker shock This is not residential. It s an investment. Doing fine renting Do you have a long-term lease? What if you need to make changes to your building? I can t afford to buy my building Your mortgage payment is likely to be same as your rent payment. Can you afford not to build equity? My tax returns don t show a profit We have lite doc and bank statement options These are special for Newfi Wholesale Too hard We have lite documentation. Our underwriting is quick, efficient, and very transparent. 16 Nexera Holding LLC dba Newfi Lending

17 Building Leads: Selling Points for Newfi Wholesale SBC Purchase, refi & cash out up to 80% LTV Alternative underwriting standards Lite doc and bank statement Quick closes Alternative property types (storage, mobile home parks, automotive) Up to 30 year amortization 17 Nexera Holding LLC dba Newfi Lending

18 How Newfi Wholesale can help Lower rates than hard money lenders Flexible underwriting Full doc, lite doc, bank statement Two-tiered pricing based on property type Multi-family and mixed-use have lower rates Quick turnaround Local account reps Continuous training 18 Nexera Holding LLC dba Newfi Lending

19 Contact us Approved Brokers: Please contact your Regional Account Manager See next slide for listing NON-approved Brokers: Please call Nexera Holding LLC dba Newfi Lending

20 Contact Us: Account Managers Account Manager Region Telephone Nicole Christy Washington State Tony Cobb Inside - National Steven Duran Florida Jeff Garcia Southern California (LA) David Johnston Southern California (LA & Orange County) Todd Kaufmann Sacramento, California Debbie Koehler Florida Lisa Morris Southern California (San Diego) Shayne Nielson Utah & Colorado Eric Nowak Sacramento & Central Valley, California Jeff Portnoff SF Bay Area, Sacramento Jesse Tannlund Inside - National Greg Vaughn SF Bay Area, California Nexera Holding LLC dba Newfi Lending

21 Important Links Newfi Wholesale SBC Forms SBC Guidelines & Flyers (under Commercial ) 21 Nexera Holding LLC dba Newfi Lending

22 Next Week - Tuesday November 14: QUALIFYING Commercial Loan Opportunities Agenda: How is qualifying commercial loans different from residential? How to calculate and evaluate commercial loan ratios How to choose the right loan program for your client Complete Doc Lite Doc Stated Income/Bank Statement How to package a loan for highest chance of approval Sign up here: Nexera Holding LLC dba Newfi Lending

23 QUESTIONS & ANSWERS 23 Nexera Holding LLC dba Newfi Lending

24 Q&A: How to ask questions Your Participation Please continue to submit your text questions and comments using the Questions panel. For more information, please contact Rebecca Kasow, VP Commercial Lending, at tel (510) Note: Today s presentation is being recorded and will be provided in 24 to 48 hours. 24 Nexera Holding LLC dba Newfi Lending

25 QUESTIONS & ANSWERS 25 Nexera Holding LLC dba Newfi Lending