Page 1

Issue 016 October 2008

Weathering the storm.

Hard Money Lending 101 on page 7

A different kind of loan. A different kind of lender.

Your Loan Hard Money, Trying to 16 Why 21 24 Production is Easy Commercial Survive? Where it is Today


The sales industry has changed.

A hard money loan might be the only choice.

Take a lesson from Darwin.

27 Combating Loan Fallout Know when to sever the ties.

Attend Leonard Rosen’s Pitbull Mortgage School Now accepting enrollment for our Hard Money Seminar Hard Rock Hotel & Casino - Las Vegas November 13th Reserve your seat today. Always sells out! The Pitbull Mortgage School teaches you specifics not hypotheticals. Here is a sample of what you will learn:

Are you ready to prosper in the hard money lending industry?

• How to start and create a REG D 506 Federal Filing

how to become a direct hard money lender and also teach you how to create an investment mortgage pool.

• How to start and create a private placement memorandum (PPM)

With the recent credit crunch crises, conventional funding has become more difficult for borrowers to obtain financing. The real estate industry has always been dependent on the ability of lenders to source loans. We have several distinct messages that we communicate at our live event. Mortgage brokers who want to broker hard money, are introduced to direct hard money lenders from all areas of the country. There are many mortgage brokers who have an interest in becoming a hard money lender. We teach you

Marketing hard money for commercial and residential properties is a key element to your success. Quite frankly, nobody knows how to market hard money better than us. We show you a proven, time tested business model. There is nothing sold at the event. Whether you are a broker who wants to originate hard money or have a desire to become a hard money lender, I can assure you that you will be shocked at the high level of content.

This is a one day event. November 13th at the Hard Rock Hotel and Casino 4455 Paradise Road, Las Vegas, NV 89169

Room Reservations at 800-HRD-ROCK prior to the cut-off date of October 24, 2008 Individuals must identify themselves with Pitbull Seminars Inc. or PITK08B to receive the special group rate. Seminar will be held from 7:30am to 5pm. 7:30 am to 5pm followed by a Cocktail Party

Questions? Call 858-736-7788

• How to start and create a mortgage pool • How to start and create a fractional investment mortgage pool • How to broker mezzanine and conduit loans • How to start and create a hard money mortgage company • How to ask the right questions of the borrower • How to manage your borrower • Where to place your loan scenario • How to determine the real value of the property (the Pitbull Hard Money way) • How to package and sell your loan to the investor • How to broker raw land loans, hard money commercial projects, foreclosures, NOD’s and hard money real estate development projects • How to assess an appraisal that will lead to funding the loan • How to broker second mortgages and home equity lines of credit • How to become a hard money lender • How to broker commercial hard money loans • How to broker hard money rehabs • How to fund and broker home equity lines of credit (HELOC´S) • How to learn strategic technques of foreclosure training

Seeking Uncapped Earning Potential? Wholesale Commercial Rate Sheet For loan scenarios: (800) 710-6762, Option 4 Fax#: 540-548-1117 Email:

Griffin Capital Funding August 19, 2008 Wholesale Rate Sheet

Core Program

25 Year Amort

*Rate Shown is for loans > $3mm Loan Rates Minimum $250,000 - Maximum $7,500,000 Multi-Use Owner Occ Multi-Use Investor Special-Use

One of Inc. 5000’s Fastest Growing Companies Needs Commercial Brokers & Correspondents!

Initial Fixed Term Variable 3 Yr Fixed 5 Yr Fixed 10 Yr Fixed

Premium Pricing

Par 5.25% 7.09% 7.09% 7.39%

(1.00) 5.53% 7.37% 7.37% 7.67%

(2.00) 5.81% 7.65% 7.65% 7.95%

Premium Pricing

(3.00) 6.09% 7.93% 7.93% 8.23%

Par 5.25% 7.27% 7.69% 8.36%

(1.00) 5.53% 7.55% 7.97% 8.64%

(2.00) 5.81% 7.83% 8.25% 8.92%

(3.00) 6.09% 8.11% 8.53% 9.20%


Premium Pricing

Par 5.50% 7.27% 7.59% 8.39%

(1.00) 5.78% 7.55% 7.87% 8.67%

(2.00) 6.06% 7.83% 8.15% 8.95%

(3.00) 6.34% 8.11% 8.43% 9.23%

Par 6.00% 8.02% 8.34% N/A

Premium Pricing

(1.00) 6.28% 8.30% 8.62% N/A

(2.00) 6.56% 8.58% 8.90% N/A

(3.00) 6.84% 8.86% 9.18% N/A

4% Yield Spread Premium for Correspondents and 3% for Brokers 10% Second Trusts Available Par Lender Ask Account Rep for Details Commercial loans from $250,000 to $15,000,000 Program Notes: view current Ratesto listed above are for best case scenario. Submit lightning quote or call account rep to price your loanto $30,000,000 Church loans from $50,000 10% Second Variable program is based on a margin over the WSJ Prime rate index and adjusts quarterly. Base prepay is a declining 5%...1% rates and apply Trusts Available! 5 Yr program resets the rate every 5 yrs based on theFirst initial margin over loans the index rate used tosecond calculate the base rate. loans Base prepay is 5% for 5 yrs trust and trust beresets a broker/ Visit 10 yrto program the rate every 10 yrs based on the initial margin over the index rate used to calculate the base rate. Base prepay is a declining 10%...1% LTV’s up to 85% Alternate prepayment penalty options are available. A lesser prepay option is available under variable, 5 Yr, and 10 Yr programs with rate increase. Multiplefor details! correspondent! Wholesale Commercial Rate Sheet greater prepay options available under all programsCLTVs that can be used to reduce the base rate or earn premium. Up toFor 3%loan in premium earned onOption prepay. scenarios:may (800)be710-6762, 4 up to 90% Adjustment for loan size: VISIT

Griffin Capital Funding

Fax#: 540-548-1117

For loan amounts below $1mm add 42 bps to rate or pay 1.50% fee. Email: For loan amounts between $1mm and $2.99mm, add 14 bps to rate or pay .50% fee Multifamily Purchase: Auto Repair Refinance Hotel Refinance RECENT Multi-Use Notes: YSP Commission: $21,450 YSPoccupied Commission: $27,000 YSP Commission: $54,844 TRANSACTIONS Max LTV of 75%. Max CLTV of 90% (owner properties under SBA 504 program) August 19, 2008 Minimum property DSCR ofCore 1.20 Program Wholesale Rate Sheet 25 Year Amort Eligible Property Types: Include but not limited to office, office condo, retail, warehouse, mixed use, light industrial, medical office *Rate Shown is for loans > $3mm Loan Rates Minimum $250,000 - Maximum $7,500,000 25 yr. Amort. Special-Use Notes: Multi-Use Owner Occ Multi-Use Investor Special-Use Hotel Max LTV of 65%. Max CLTV of 85% (owner occupied properties under SBA 504 program) Initial Fixed Premium Pricing Premium Pricing Premium Pricing Premium Pricing Minimum property Term DSCR of 1.30 Par but (1.00) (2.00) (3.00) automotive, Par (1.00) Par (1.00) (2.00) (3.00) Par (1.00) (2.00) (3.00) Eligible Property Types: Include not limited to restaurant, daycare,(2.00) assisted(3.00) living 5.25% 5.53% 5.81% 6.09% 5.25% 5.53% 5.81% 6.09% 5.50% 5.78% 6.06% 6.34% 6.00% 6.28% 6.56% 6.84% HotelVariable Notes: 7.09%possible 7.37%for7.65% 7.93% 7.27% 7.55% 7.83% 8.11% 7.27% properties 7.55% 7.83% 8.11% 8.02% 8.30% 8.58% 8.86% 3 Yr Fixed Max LTV of 65%. LTV reduction other factors such as property age, exterior corridor, or unflagged 7.65% 7.93% 7.69% 7.97% 8.25% 8.53% 7.59% 7.87% 8.15% 8.43% 8.34% 8.62% 8.90% 9.18% 5 YrofFixed Max CLTV 85% (owner 7.09% occupied7.37% properties under SBA 504 program) 10 Yr Fixed

7.39% 7.67% 7.95% 8.23%

Loan Rates

8.36% 8.64% 8.92% 9.20%

Conduit Crusher

8.39% 8.67% 8.95% 9.23%


30 Year Amort



Minimum $1,000,000 - Maximum $15mm 30 yr. Amort. 10% Second Trusts Available Multi-Family Multi-UseAsk Account Rep for Details


Loan to Values Program Notes: Premium Pricing Premium Pricing Initial Term Rates listed above are forFixed best case scenario. Submit lightning quote or call account rep to price your loan up 85% on Par (.50) (1.00) Par (.50) (1.00) Variable program is based a margin over the WSJ Prime rate6.78% index and adjusts quarterly.6.74% Base prepay is a declining 5%...1% 6.62% 7.02% 6.90% 7.14% 3 Yr on Fixed Commercial 5 Yr program resets the rateFixed every 5 yrs based on the initial margin over the index rate used to calculate the7.60% base rate. Base prepay is 5% for 5 yrs 7.32% 7.48% 7.72% 7.44% 7.84% 5 Yr Loans! 10 yr program resets 7theYrrate every 10 yrs based on7.67% the initial margin over the8.07% index rate used to calculate7.95% the base rate.8.19% Base prepay is a declining 10%...1% Fixed 7.83% 7.79% Alternate prepayment options are available. A lesser prepay option is8.41% available under variable, 58.29% Yr, and 10 Yr programs 10penalty Yr Fixed 8.01% 8.17% 8.13% 8.53% with rate increase. Multiple greater prepay options available under all programs that can be used to reduce the base rate or earn premium. Up to 3% in premium may be earned on prepay. Rates, terms, and conditions subject to change without notice. This does not represent an offer to enter into a loan with Griffin Capital Funding. Adjustment for loan size: Program Notes: For loan amounts below $1mm addand 42have bps to rate or payLTV 1.50% fee. All loans underwritten to a 30 year amortization a maximum of 80% Minimum 1.20 DSCR For loan amounts between $2.99mm, add 14 bps to end rateof oryear pay .50% 3 Yr program balloons at year three. 5, 7,$1mm and 10and year program balloon at the 10 fee Multi-Use Notes: Prepayment Penalty: LTV of 75%. Max1% CLTV of program 90% (owner occupied properties under SBA program) 3-yr programMax - Declining 5%, 3%, 5-yr - Declining prepay of 5%...1% 7-yr504 program – Declining prepay of 7%...1% property DSCR of 1.20 - Declining prepay of 10%.....1% 10-yr programMinimum Eligible Property Types: Include but medical not limited to office, office condo, retail, warehouse, mixed use,retail, light industrial, medical 1135 Heatherstone Dr,strip, Suite 102 | Fredericksburg, VA 22407 Property Types: Include office, office, R&D Flex Office, anchored or unanchored single credit tenant,office warehouse Multi-Use Eligible Special-Use Notes: Owner occupied properties require minimum loan amount of $3mm (800) 710-6762 ext 1 | LTV of 65%. CLTV 85% (owner occupied SBAover 504the program) 3 year ARM—Max beginning in yearMax 4, the rateofwill adjust quarterly at aproperties spread of under 300 bps 3 month LIBOR index with a floor rate equal to 100 bps below Minimum property 1.30 the initial 3 year fixed rate. ThereDSCR is no of prepayment penalty during the final 90 days of the fixed rate period or during the adjustable rate period. There is no Eligibleduring Property limited to restaurant, automotive, daycare, prepayment penalty theTypes: final 90Include days ofbut thenot fixed rate period or during the adjustable rate assisted period. living

Visit for more information!


Issue 016

October 2008


Why Your Loan Production is Where it is Today


pg 35


pg 37


pg 37


pg 38


pg 41


pg 42

The sales industry has changed. Tom Ninness



Reinstitutionalizing Equity-Based Lending, Part II


Marcus M. White Sr. Mortgage Banker & Manager at Dynamic Capital Mortgage Know when to sever the ties.

Lane T. BAcon managing director for Advantage Capital Equity Fund I, LLC Save borrowers from losing their property.





Hard Money, Easy Commerical Deal Andrew Bogdanoff Founder and President of THE Remington Financial Group A hard money loan might be the only choice.

Trying to Survive? Rick Perelli Mortgage Broker with Clarion Mortgage Bruce Backer President of Loansifter Take a lesson from Darwin.

October 2008

Combating Loan Fall Out

Center Stage with LoanAce the niche report A free LOS system, find out how.

EDITORIAL / CONTENT MANAGER Kristen Moser COPY EDITOR Stewart Mednick ACCOUNTING MANAGER Shawna Ingram sales manager Mark Moulton Production Mananger Henry Suchman Production Assistant Dawn Exner


09 10 32 44


ADVISORY BOARD Aaron Krowne President and CEO, IEHI, Inc. COLUMNISTS Stewart Mednick CONTRIBUTING AUTHORS Bruce Backer Lane T. Bacon Andrew Bogdanoff Rick Perelli Tom Ninness Marcus M. White

Weathering the storm. Use this guide to save time, close more deals and give your client’s loan the best chance for approval. A well-organized loan summary should include the following essential information:

The Executive Summary is a concise, but thorough, overview that includes: tDescription of Property & its Estimated or Appraised Value, Square Footage, Number of Units. tLoan Amount & Use of Funds – Debt owed/Liens on the property/Cash out? tDate of Purchase & Price – How much cash has the borrower invested? tDebt Service – How will the borrower make monthly loan payments? Will it produce income or is an interest reserve needed? tLoan Term Requested – Avatar offers loan terms up to 2 years. Payments are interest only and no prepayment penalties apply. tEquity – Avatar lends up to 65-70% LTV on purchases and refinances on income producing commercial properties. Avatar requires borrowers to have a minimum of 20% equity in their projects. Some secondary financing is allowed.

Color Photos of the Property and/or Appraisal – At least three shots each of interior, exterior and the neighborhood. Avatar does not require a current appraisal to review the loan. Operating Income (P & L) – most recent 2 years on the subject property; summary of lease agreements and rent roll. If owner occupied, provide operating statement from the business. 1003 Loan Application or Personal Financial Statement on the Borrower/Guarantor. Upon receipt of the above items, Avatar can issue a Letter of Intent/Term Sheet within 24 hours. Email your submissions to Avatar is a nationwide direct lender that funds loans from $1 million and up, with closing in as little as 2 weeks. If you have questions about a loan, please call us at 866.885.4250 or visit us online at

tExit Strategy – Refinancing? Selling? tThe Story – Why are you seeking hard money rather than conventional financing? What ‘skeletons in the closet’ or ‘bumps in the road’ does Avatar need to know about in order to provide you with a quick, reliable answer?

A different kind of loan. A different kind of lender.

Published monthly by BODA Publishing, LLC PO Box 2618, Stafford, VA 22555 Phone: 540.657.2632 Fax: 703.991.2362 Email:

SUBSCRIPTIONS This publication is intended for real estate finance professionals. If you are a mortgage broker, lender, loan officer and you do not currently receive The Niche Report, please send your name, company name, and address to To opt-out of receiving The Niche Report, please send your request, including name, company name, and address to

ADVERTISEMENTS To inquire about advertising in The Niche Report, please call 540.657.2632, or send an email to Visit our website, to download a copy of our Media Kit.

EDITORIALS / ARTICLES To submit an article for consideration in The Niche Report, please send an email to or call 540.657.2632. We are interested in original writings relevant to mortgage brokers and other real estate finance professionals. If you have a comment or question about an article or editorial published in The Niche Report, or if you have a suggestion for a topic you would like to see featured in a future issue, please send an email to

THE NICHE REPORT POLICY The information and opinions expressed by contributing authors and advertisers within The Niche Report do not necessarily reflect those of BODA Publishing, LLC employees and should not be considered as endorsed or recommended by BODA Publishing, LLC.

The Premier One-Stop Commercial Mortgage Loan Amounts have been Hub extended up to $10,000,000 nationwide

AcuPen Financial is a Specialized Commercial Lender focusing on small balance commercial real estate

financing from $100,000 to $5,000,000. Through

While prime is on the rise, AcuPen financial offers Tier 1 & 2 property financing below 8%

multiple SISA and full documented programs, AcuPen

With new flexible underwriting criteria, qualifying for 90% LTV is now even easier

With over 20 years of experience within AcuPen Financial,

AcuPen Financial

6201 SW 70th St. 102

Financial is your one stop commercial mortgage HUB.

we strive to find a solution for all your commercial

scenarios. Please browse through our programs listed

and feel free to contact us via phone, fax or submis-

Miami, FL 33143

sion form with any questions or concerns. We

Phone: 305-666-1879 FAX: 305-704-8348


thank you for visiting us here at AcuPen


At the time of this writing, Fannie and Freddie have been taken over by the Feds, AIG is in deep trouble, one of the oldest investment firms in the country, Lehman Brothers, has declared bankruptcy and is being sold off to Barclays PLC, and Bush is pushing a “bail out” bill that would cost taxpayers approximately $700B. I think I’ll go out on a limb here and declare that we have hit the bottom. Yes, things seem very bad right now. BUT I would like to share a story with you about a conversation I had with a friend of mine as we hiked up a local mountain trail recently. My friend, who is in his early thirties, is from Iran and has lived in this country since the early 90’s. He works a job that has nothing to do with the mortgage industry, but he is certainly aware of our country’s current predicament. We were about half way up the mountain and the topic of the economy naturally came up. As I was bemoaning the unprecedented low of our economy, he immediately starts talking about his memories of living in Iran. He talked about “well-to-do” families who were financially stripped overnight of their life savings based on a government whim. He also talked about school mates and neighborhood friends who would one day be sitting beside him at school or outside playing in the streets and the next day they were dead from a mortar shell or killed in some facet of war. After describing these horrific events – and as I was soaking up the insanity of it all - he looked at me with unwavering confidence, his eyes swollen with pride and says “Bob, I have lived in countries all over the world, and I promise you, no matter how difficult people may think they have it here, the United States is still the greatest country in the world”. He said it with such conviction that I had no doubt he was right and it put many things into perspective. With the bottom hopefully realized, there is only one direction to go. There is still a huge need for mortgage lenders and brokers as first time homebuyers and financially stable consumers take advantage of dropping home values. Get out there and create those real estate agent relationships, find and fight for those deals and put effort into your business. I also think that this $700B bail out will be good for our industry and the economy; it will hopefully give some life to our secondary market. In my opinion there is still no better business to be in.

Keep up the fight

Robert Pegg



Upcoming Key Dates & Events: October & November October 2-3

November 6-7

12 13 14 15 16 17 18

MBA’s Reverse Mortgage Lending Fall Conference at the Hyatt Regency, Miami in Miami, Fl. Visit for details.

19 20 21 22 23 24 25

October 8

MBA’s Residential Underwriting Conference at the Embassy Suites Tampa - Downtown Convention Center in Tampa, FL. Visit for details.

october 2008 S M T W T 5



1 8



2 3 4 9 10 11

26 27 28 29 30 31

Housing Forecast/Pending Home Sales Index released by the NAR.

november 2008 S M T W T



October 15-17







9 10 11 12 13

Virginia Association of Mortgage Brokers 20th Annual Convention in Virginia Beach, Virginia. Visit for details.



14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

October 1-3 New Jersey Association of Mortgage Brokers 16th Annual Conference at the New Trump Taj Mahal in Atlantic City, NJ. Visit for details.

Continue to receive The Niche Report monthly In an effort to maintain a healthy circulation we will be deleting many aged subscribers. If you haven’t already gone to our website and subscribed, do it now! ree! It’s f


October 2008

October 19-22 MBA’s 95th Annual Convention & Expo at The Moscone West in San Francisco, CA. Visit for details.

October 24 September Existing Home Sales released by the NAR.

November 7 Housing Forecast/Pending Home Sales Index released by the NAR.

November 9-11 MBA of Pennsylvania's 2008 Conference at the Hershey Lodge in Hershey, PA. Visit for details.

November 14 MBA of Metropolitan Washington's Mid-Atlantic Lender/Broker Conference at the Fairview Park Marriott in Falls Church, VA. Visit for details.

November 15-18 NAMB/West 2008 Conference at the MGM Grand in Las Vegas, NV. Visit for details.

November 18 3rd Quarter Metro Home Prices/State Resales released by the NAR.

November 20 Commercial Leading Indicator released by the NAR.

November 24 October Existing-Home Sales released by the NAR.











REINSTITUTIONALIZING EQUITY-BASED LENDING, PART II Save many borrowers from losing their property. BY LANE T. BACON

This is the second part of our two-part series which was originally published in our September 2008 issue of TNR.

Solution Part 1 – Loan Origination An efficient wholesale equity based loan origination platform must be created and designed to source loans from a multitude of viable markets, targeting those which are densely populated. The loan origination platform (“Company”) must be dedicated to the principles of EBL. These principles are: 1) conservative valuation of the collateral with an independent third party review; 2) substantial equity remaining in the property after the new loan is funded (typically a minimum of 30% and preferably at least 40%); 3) a tangible net benefit to the borrower; 4) diversification geographically, by collateral type, and by borrower; 5) proactive, high-touch loan servicing that tries to help the borrower re-establish credit and refinance; and 6) a lack of prepayment penalties, so that the borrower is free to transition to a new, lower rate loan. Benefits • Wholesale model allows for faster dissemination of information to the marketplace. • Creates diversification, to limit exposure to a particular market, market segment (asset/collateral type), and borrower. • Third party independent valuation reviews is a best practice designed to ensure accurate and conservative valuations as well as reduce the risk of appraisal fraud. • 40% remaining equity in the collateral ensures the borrower retains a vested interest in the asset and the performance of the loan. • Proactive servicing and loan counseling helps communication and increases the likelihood of an early

loan repayment. • A lack of a prepayment penalty increases the probability of the borrower quickly refinancing and realizing a lower payment and increased savings sooner.

Solution Part 2 – Investment Vehicle In order to satisfy the need of equity based lenders to offload production, an investment vehicle must be created with sufficient capacity to purchase up to $100 Million of product inflow per month. This would mean the development of an investment vehicle with an Assets Under Management (AUM) of nearly $3 Billion. The investment vehicle or hedge fund (“Fund”) must be able to effectively manage performing and nonperforming assets and maintain the ability to acquire Real Estate Owned (REO) properties from other institutions. The above strategy creates a twofold revenue stream to investors; 1) the generation of income through monthly interest payments and loan origination fees, and 2) significant capital appreciation created through gain on sale due to the conservative loan to value (LTV) limitations. If properly managed, the Fund should realize annual gains, net of fees, greater than 15%. Benefits • Creates liquidity for Equity Based Lenders. • Creates opportunities for companies and individuals to tap equity during the Credit Crunch. • Saves many borrowers from losing their property. • Generates substantial gains for investors in the Fund. • Constant deal flow. Both the hedge fund and loan origination platform must be managed by the same General Partner, thus


ensuring proper quality controls and the performance of the loans.

Implementation Implementation of the solution is not easy as Equity Based Lending professionals are rare, and one must gather a significant number of them to effectively implement the solutions. Implementation Step 1- Obtain startup capital so the proper loan origination licensing and infrastructure may be created. Implementation Step 2 - Establish and license the loan origination company. This process takes a minimum of 3 months and may take as long as 12 months, depending on the state licensing entity. Also, the loan origination company must employ several licensed persons to act as a “Designated Broker” or “Responsible Individual” as required by various states. Implementation Step 3 - Create the “Fund.” This is an arduous process and involves many attorneys and experts, as there are many different ways to structure a fund. Typically, this process takes up to 6 months and may cost



The Seasoned Funds Company Inc. CALL: (877) 226-6260 WWW.POFSOS.COM & WWW.ASTERCAPITAL.COM

between $50,000 and $250,000. There are many firms that specialize in the formation of hedge funds. Implementation Step 4 - Raise capital into the fund. Be careful, as you cannot advertise this investment. Failure to abide by Securities and Exchange Commission regulations can result in penalties including fines and in the case of egregious or deliberate violations, incarceration. Raising capital is not undedicated. Be prepared to give away a sizeable equity piece of the General Partner (GP) for seed investors. In order to properly launch any fund, you will need initial funding that covers your anticipated monthly production levels and a procedure to source and secure new investors on a consistent basis. It is important to match fund raising capabilities to loan origination levels to ensure efficient cash utilization. Implementation Step 5 - Begin loan origination operations, so that all entities may establish a track record. Implementation Summary - The creation of the entities is difficult and time consuming. Typically it takes one year or more to get the ball rolling. The learning curve is steep, and most people and companies fall off prior to completion.

Summary The Re-institutionalization of Equity Based Lending (hard money lending) will satisfy a grossly underserved niche and help protect property owners and those dependent upon them. Many businesses and homeowners would be able to avoid losing their prized assets. “Best Practices” must be adhered to, so that we do not experience failure like so many others did during the Credit Crunch. The re-institutionalization process will take time; however with the experts and professionals at Advantage Capital Equity Solutions, the timeline to implement the solution can be shortened. Lane T. Bacon is the founder of Advantage Capital Equity Solutions, Inc. and managing director for Advantage Capital Equity Fund I, LLC, a private equity fund, and Advantage Capital Equity Fund II, LP, a hedge fund. Having originated over $1 Billion in equity based loans, managed private investment funds, and managed several warehouse lines of credit, Mr. Bacon proves to be a veteran of asset based and hard money lending. Mr. Bacon is a graduate of University of Colorado, Boulder, Leeds School of Business, and is a former US Navy sailor., 800-985-0341

Why Your Loan Production is Where it is Today The sales industry has changed by tom ninness


he sales industry has changed. The sales professional will only be successful by building a business based on integrity, hard work and an understanding of business relationships. Real estate, like any investment market, rotates through business cycles on a regular basis. Being successful in this industry is more about staying on top of your game rather than making excuses for the downfalls. Albert Einstein said “Imagination is more important than knowledge�. In times of difficult selling, it takes imagination and determination to become successful in your field. Often sales professionals allow certain myths to

impair their ability to sell. Let’s explore a few of the more common objections and related myths: I am new in the business. Congratulations!! There are no bad habits to overcome! With a clean slate you can absorb training, mentoring, coaching, and reading material. You are a fresh page waiting to have experience fill your book. Seek out the best in your business and ask questions. As with any business, planning is essential. Not just an outline in your mind, but a written down, step by step, plan of action to success. Use your business plan as a guide; a work in progress that helps you focus on your goals. Understand that there is no power in the past, but only in the present. Whatever your experience has been, your determination in the present is what will make you successful.

I don’t have the experience or training. If your company offers training, take advantage of every opportunity. If they don’t, it’s up to you. The opportunities are out there, now more than ever. Search the internet. Sign up for classes. Read books. Every day should be a training day. Build a business plan. Talk to the successful agents or loan officers within your company and absorb their secrets for success. Learn who are the time wasters and stay away from them. Prospecting is often neglected. Don’t wait for the phone to ring. Action planning is more than an open house. It takes perseverance, planning, marketing and creativity. An open house, a balloon and an Open House sign is not a marketing plan. Everything has to be perfect. The perfect flyer, the perfect script, and the perfect presentation, everything has to be “right” before they do anything. Nothing gets done. Instead, form a daily action plan. Plan your phone calls, your meetings, your appointments, prospecting time and paper work. Leave nothing to chance. The more organized your time the more you will accomplish, even if it’s not perfect! You are your own business; invest in yourself. I haven’t figured out my niche. If you are new to the sales business, your niche is everybody. Don’t wait for the lightening bolt to hit on what you are supposed to be doing. As you gain experience, your niche will start to reveal itself. Top Producers are unapproachable. There is sometimes an awe and respect that Top Producers have, almost like movie star status. More often than not, they appreciate a new person’s struggles and are more than happy to share. A rookie agent friend of mine knew that she needed to learn from top producers. She sought out the top four female agents in her area and sent them a blank cassette tape, a check for $50.00 and a note. The note mentioned that she was new in the business and asked if they would share some ideas on what she needed to do to become a top producer. The $50.00 check was a thank you for their time and she also supplied a pre-paid envelope. All four agents responded, refusing the check and set up a time to have lunch. Each of these successful agents mentored the rookie agent to becoming one of the top agents in the Denver area.

I don’t like to prospect. Sales success results from successful prospecting. This is the number one reason why people do not achieve success in sales. It could be from past experience, improper training, lack of confidence, or any number of things that the sales person uses as excuses. Prospect your sphere. Share your information. Create a network that encourages referrals from your past clients, professional referral sources and direct spheres of influence.

What sets Top Producers apart from the others? Top Producers invest in themselves. Critical to building their business is investing 10 to 20 percent of their income back into their business. They use the money to continually improve their knowledge as well as the efficiency of their business. Imagination, information, and knowledge improve their success percentages. Systems that reduce interruptions are significant for success. Arriving at the office an hour or so before everyone else allows you to accomplish a tremendous amount of miscellaneous work before anyone shows up. By 8:30am, when the office starts to fill up, you are free to be out the door prospecting. Look for ways to reduce your interruptions. Check email twice a day instead of being reactive every time the email bell goes off. Schedule specific times throughout the day to return all phone calls. Use your voice mail to update callers when they can expect return calls and a brief outline of your schedule. Note in your voice mail if there is someone else who will be able to help them immediately. Terminate unprofitable relationships. Get rid of the “time robbers” as wasted time is lost revenue. Are the relationships, activities, and time investments giving you the rate of return that you desire? If not, consider eliminating them. Top Producers react to all situations in a responsible, positive and consistent manner. They face problems head on and keep customer service as a priority. Business is important but so are the “life priorities”. Carefully plan your time around your faith, family, physical and financial needs. These are more important than a commission. Envision your business plans three years, five years and ten years out, and how it will affect your family. Use that business plan to create a plan designed for


y s b 0! r a ye 3,00 3 g 2 $2 it n ay a w br g a e l n Ce givi

Hedge your bet, win $23,000 cash! Enter our drawing to win $23,000, and cover your HVCC appraisal compliance risks with maximum flexibility.

Mercury Network: More important than ever The mortgage market has seen its share of ups and downs, and collateral value is at the core of lending once again. You need accurate, independent appraisals done in compliance with all of the existing and new regulations — especially with regards to the new HVCC (“Home Valuation Code of Conduct”), which is slated to take effect on January 1st. Of course, with a new regulator of Fannie and Freddie and all the market turmoil surrounding them, nobody even knows if the HVCC will actually take effect. So, you’re in a quandary. Do you outsource appraisals to an appraisal management company and take on the risks associated with abandoning appraisers with whom you’ve had a good working

relationship for years? Or do you manage them in-house and risk being accused of influencing values? Is there a way to hedge your bet and get the best of both worlds? You bet there is. Since 2002, our Mercury Network website has been used by more than 200,000 mortgage professionals to order and manage tens of millions of appraisals, at full fee to the appraiser. And with our new update to Version 3.0, you get all the “double blind” ordering and communications that protect your legal liability, without losing access to your existing appraisers and without alienating them by inserting an appraisal management company in the middle.

You use us already and don’t even know it Even if you aren’t using the Mercury Network website right now, you’re using our appraisers. That’s because over 50% of all the appraisers in the country connect to you using our desktop and web products right now. You might order an appraisal by phone, fax, or e-mail, but the report is likely prepared and delivered to you using our Mercury Network technology backbone. Look at the bottom of your delivered appraisals and you’ll see “a la mode” there over and over and over. So sign on today and start using the “other side” of the Mercury backbone. You’ll get an easyto-use website interface (that scales up to full

server-side XML integration if you’re a bigger originator), better appraisal management, full nationwide coverage, more flexibility in handling appraisal assignments, complete automated rule checking of appraisals, and of course 100% compliance with existing and upcoming regs. There is no larger system, no more robust system, no more flexible system for managing collateral valuation than the Mercury Network. You can be ordering and managing your first appraisals in minutes. Come see for yourself, today. You’ll never look back, unless it’s to admire that pile of $23,000 in cash behind you.

Sign up today on the Mercury Network 1-800-ALAMODE

AD CODE: MANRXSME1008 a la mode and its products are trademarks or registered trademarks of a la mode, inc. Other brand and product names are trademarks or registered trademarks of their respective owners. All prices, terms, policies and other items are subject to change without notice. Copyright © 2008 a la mode, inc.

success by including IT systems, marketing plans, budgets, prospecting, and data base management. Top Producers understand that prospecting, sales and marketing are the key actions in bringing in the business, but they must also have a system of responding to customer service in place as well. There is no quick fix to successful sales. Every action and reaction must be carefully considered, time must be planned, and prospecting cultivated. Family is as important as business relationships. In essence, sales success isn’t easy work. Be conscious of the under achievers and look to the Top Producers as a model. You will see great results by thinking your way to the top. Tom Ninness is Vice President/Regional Production Manager for Cherry Creek Mortgage. Ninness is also the President of Summit Champions, a company dedicated to providing tools, software, and opportunities for the Real Estate and Mortgage Professional. You can contact Tom at 303270-9600, or email Tom at Go to to learn more about Summit Champions.

PRIVATE RESIDENTIAL and COMMERCIAL FINANCING RESIDENTIAL: Firsts up to 800K --60% LTV or less HELOC Seconds to 150K --60% LTV or less


FAST FUNDING TIMES To expidite the underwriting process please include 1003, credit report, explaination of loan, pictures or an appraisal, and a completed submission form with your submission!!





Friday, Nov. 14, 2008 Fairview Park Marriott 3111 Fairview Park Drive, Falls Church, VA 10:00 AM - 4:00 PM Only $20 to attend for the full day ($25 after 11/5/08) Register online TODAY at

Learn how to survive in today’s volatile market by attending a full day of educational seminars on: • mortgage insurance • community lending programs • FHA update • Fannie Mae & Freddie Mac financing • economic update • appraisal market update Trade show featuring over 50 exhibitors including lenders, down payment assistance programs, MI companies, title insurance companies, software technology companies and more.

For more information, contact MBA of Metropolitan Washington (301)924-0633

HARD MONEY, EASY COMMERCIAL DEAL A hard money loan might be the only choice. BY ANDREW BOGDANOFF


ou hear the term all the time, but most people don’t know exactly what a “hard money” loan is. The truth of the matter, is that a bit of time should be invested in understanding this unique loan type since it is an effective tool in a broker’s arsenal of possible commercial lending types. Brokers that have a strong relationship with a hard money lender simply make themselves available to assist their clients and earn a fee that they ordinarily would not. But what exactly is a hard money loan? Let’s look at the attributes of this loan, review some examples of how and why it’s used and further explore how lenders make these unique loans happen.

Why Hard Money? A hard money loan is most easily recognized by its distinguishing characteristics including a low loan to value, high rates and high fees. But it is best known for its ability to close quickly; often times hard money loans can move from start to close in 30 short days. So, why would someone need to close a loan in 30 days? It turns out there are many reasons that a quick turn around might be necessary. For instance, consider a woman who is aware of a piece of available property that is near the site of a soon-to-be-built shopping center. The land owner will sell the property at a lower cost, but only if the deal can close in the next 30 days. If the borrower were to go the traditional borrowing route,

closing would take 60 to 90 days meaning she would lose the opportunity to secure the land at the reduced rate. By securing a hard money loan, the borrower will pay higher rates and fees, but can close quickly knowing that she will earn a significant return in a year when the shopping center’s construction is complete and the land’s value has increased. Despite the high fees and rates, a hard money loan might be the only choice to help borrowers out of a sticky spot. For example, consider the individual who’s lender is about to foreclose on his property unless he can repay a certain amount within a short time period. The property is worth $10 million and the borrower owes $1 million against it. If the property is foreclosed upon, all of the property’s equity will be lost. Although a hard money loan carries high fees and rates, it enables the borrower to meet the aggressive repayment timeframe and save the equity in the property.

How Hard Money Works A lender that specializes in hard money loans is equipped to handle the expedited closings of 30 days or less, which makes them unique in the lending space. These firms do so by preparing themselves with all of the necessary underwriting resources (attorneys, appraisers, etc.) to review and approve a loan very quickly. Hard money lenders employ a lower loan to value ratio than a traditional lender might. For instance, a commercial loan to value might range from 70 to 95 percent. A hard money lender, however, will lend at no more than 50 percent loan to value, which allows the firm to recover its investment should the need arise.


Also, most times a hard money lender will skip traditional underwriting steps, such as evaluating a borrower’s credit rating or examining his experience level, as a means to progress the loan more quickly. One step the hard money lender will never skip is a water tight appraisal of the property. By ensuring the property’s value in advance of making a loan, the lender can tolerate the high risk it takes because it can liquidate the asset for enough money to recover the loan if necessary. Just as important as a rock solid appraisal is an appropriate exit strategy. If a borrower cannot share how the loan will be repaid, in reasonable terms, a lender will not make the deal. There is a derogatory expression that hard money lenders are “loan to own” lenders, meaning that they would be happy to take possession of a property because they can get it at such a low cost. This is the last thing that a hard money lender wants. Taking over a property and trying to manage it while they want to sell it is not what the lender is in business to do. Foreclosure, therefore, is not a suitable exit strategy for a hard money lender.

No Pre-payment Penalties It’s important for a broker’s client to understand that a typical hard money loan does not have a pre-payment penalty associated with it. So, if the borrower is in a position to repay the loan early the lender will not impose an extra fee. Because the loan fees for a hard money loan are already high, lenders are able to enhance their yield and, therefore, do not need to impose pre-payment fines. Consider this example: A lender makes a loan for $1 million at 14 percent interest and 10 points. The lender collects $100,000 up front. He is only exposed for $900,000 but is collecting a high rate of interest for the full $1 million. Not only did the lender collect a whole year’s worth of interest in the $100,000 paid up front, but his loan is repaid in a short period of time which allows him to loan it out again very quickly and increases his yield for that loan amount. In short, a hard money loan allows the lender to continually re-lend dollars numerous times each year, so there is no need to collect a prepayment fee.

Recent Closings:

Offering More than Before In the course of a commercial broker’s career, the need for a hard money loan will most definitely arise. By forging a solid relationship with a hard money lender, a broker now has a resource to serve clients in need of a fast-closing loan. Keep in mind that most hard money lenders are broker friendly also. Because their fees and rates are higher than the typical loan, many hard money lenders will actually funnel some of their fees back to the broker.

Condo Conversion Refinance $2.77 Million Kissimmee, Florida Broker Commission: $55,240 Mixed-Use Complex & Restaurant Refinance $3.55 Million Becker, Minnesota Broker Commission: $79,500 Bed and Breakfast $2.6 Million Lenox Village, MA Broker Commission: $52,000 Apartment Complex $1.6 Million Memphis, Tennessee Broker Commission: $24,000

Andrew Bogdanoff has more than 35 years of commercial lending experience and founded Remington Financial Group in 1993. Bogdanoff has served as the company’s president since its inception, and, under his leadership, RFG has closed billions of dollars in transactions. Andy can be reached at andy@remingtonfg. com. For more information on Remington Financial Group, please visit

Manaseh, Epharim & Associates

Convenience Store and Gas Station $4.1 Million Gilman, Illinois Broker Commission: $51,250 Golf Course Development $3.4 Million Tampa, Florida Broker Commission: $68,000


CHANGING THE INDUSTRY Your source for commercial real estate financing.


Funding nationwide and internationally!! Rates from 3.9% Metro Funding Corporation One Kalisa Way, Suite 310 Paramus, NJ 07652

Direct Private Lender www.MEANDASSOCIATES.COM 770-840-0112 or 770-840-0113 Fax: 678-302-6444

For more information, call toll free (866) 302-6360 or visit our website:

TRYING TO SURVIVE? Take a lesson from Darwin. by rick pelleriti and bruce backer


ixty million years ago, dinosaurs roamed the world. Then their environment changed. They could not adapt, and they did not make it. Just a short year ago, the mortgage industry offered a friendly environment. Lenders’ guidelines were more relaxed and loan prospects plentiful. Low FICOs and high LTV combinations weren’t an issue. There were plenty of lenders to choose from, rates were good, refinances were easy and money was to be made. Needless to say, the lending environment has changed dramatically. FICO requirements have been raised, LTV limits have been lowered, HELOCs are nearly nonexistent, and it is much more difficult to qualify for stated income loans. In general, the pool of qualified borrowers has shrunk considerably. Consequently, loan volume is way down, and of course, income has dropped significantly for thousands of loan officers forcing many out of the business. Like the dinosaur, many loan officers could not adapt, and did not make it. What can the average loan professional do to survive? Adapt. Darwin was right – it’s survival of the fittest. The business has become much more competitive. Banks and lenders have written off billions, and many institutions have closed their doors. Everyone is scrambling for a share of a shrinking pie. The savvy borrower knows this, so they can afford to become more selective. When it is a buyer’s market, prices drop. Rather than worry about how much money you are not making, you’d better start adapting and doing what is best for the customer. While we all may have that general intent, in practice it is a much more difficult task. Loan professionals try their best to find the lowest rate for their client; but until


October 2008

now, there just has not been an easy way to do that. Since lenders have been tightening their guidelines continuously over the past year, it’s been nearly impossible to keep up with the changes. Price changes have occurred with ever-increasing frequency, and lenders emphasize and de-emphasize their loan products so often that what is true today is not true tomorrow. As Darwin discovered, nature selects. And only those loan officers who can adapt to such rapid change will remain standing. So the question becomes, exactly how can the loan officer adapt to such rapid change? How can you canvass more lenders? How can you research faster? How can you absorb more information? How can you aquire updated pricing as soon as it happens? In a word, technology. In a market that’s riddled with dismal information, it’s refreshing to know there’s a technology that can do everything you need. It’s called a Product Pricing Engine, or PPE. With a state-of-the-art PPE, imagine these scenarios: • Finding the best rate among all your lenders for any given scenario • Staying on top of your lender who changes prices three times in a day • Finding the best lender who has the best rate for any given desired rebate • Not having to scour rate sheets • Knowing the best wholesale rates in seconds for the most popular products • Cutting your research time from two hours to two minutes • Saving countless hours each month, allowing you to spend more time on marketing and servicing your clients

PPE technology has come in the nick of time for those who recognize the need to adapt. With the marketplace in constant flux, the need to be competitive is paramount. Having a PPE is vital for differentiation. But it’s not just having the technology that’s important, it’s using it to rebuild trust. Loan professionals need to tell – and show – their clients they have this competitive advantage and they’re using it to the consumers’ advantage. This will go a long way to convince the borrower that shopping rates may be a waste of their time. Imagine a PPE that can place the very best wholesale rates (or retail rates with any YSP you choose) from all your approved lenders right on your website. You do not have to worry about changing the rates – it happens automatically. Your prospects can now empower themselves and know that you are keeping them up-to-date automatically. As your lenders make any changes, there is a live feed right to the rates table on your site. Now that’s a good use of technology! Here is a bonus. It seems whenever your heart is in the right place, other good things tend to happen. How would you like to make more money with this technology? Here is a good example. In the past, you may have quoted a rate from your favorite lender. Let’s say it was 6.0% at a price of 100.00, or “par.” Perhaps you looked at a handful of lenders, spending quite a bit of time actually, but not the kind of time if you had wanted to check ALL your lenders – because as we all know, no one has that kind of time. You may or may not have won that deal, because your competition probably looked at that same handful of lenders. However, what if one of your approved lenders, whom you had never used before, all of a sudden decided to aggressively price the 30-year fixed to win more business? With PPE technology, their better price will now show up

automatically. Their price could easily be 100.35 for that same 6.0% scenario. On a conforming loan amount of $400,000, that equates to an extra savings to the customer of $1,400! Depending on your business practice, you can either pass that savings on to your client, thus ensuring you win the deal, or retain the additional YSP. Either way, you win. But better yet, you have adapted. You are using technology to differentiate yourself. You re on top of the market, the lenders, rates, and prices. All in minutes, if not seconds. You are a better loan professional, and you will undoubtedly survive. Darwin would be proud. Rick Pelleriti is a mortgage broker with Clarion Mortgage, ( and specializes in technology and creative programs to benefit his clients, and shares this with fellow loan officers. Bruce Backer is president of LoanSifter (, which provides web-based product and pricing engines for the Prime/Alt-A market. He can be reached at 920-687-1222.

We’ll help you put the pieces together.

FOR SALE OR JV 16,000 active loan broker member data base Over 5000 Qualified Loan Requests Annually Over $300 Million in Loans Funded in Last 5 Years Too many good loan opportunites, not enough time or capital

Contact Owner -

(208) 772-7334

Hard Money Loans from $100,000 to $1,500,000 • Minimum Credit 400 • No up front fees

• No seasoning • 48 hour closing

Lending Territory includes DE, MD, DC, VA, NC, SC, GA and FL. ALL LOANS FOR BUSINESS OR INVESTMENT PURPOSES ONLY For an immediate online approval and commitment letter, go to WWW.FMV1.COM and fill out our loan qualifier. 6019 Tower Court, Alexandria, VA 22304 Phone: 703-823-6800 or 866-902-FMV1 (3681) Fax: 703-997-2499 Paul Fogle or Art Bennett First Mount Vernon is a privately-owned, equity-based lender which specializes in lending to borrowers who can’t secure funding from traditional financing sources. Loans typically funded within two business days upon receipt of completed package. First Mount Vernon does not make consumer loans. Financing is for business or investment purposes only, secured by real property.


Tired of saying No to your loan applicants? Say YES! more often when you partner with Credit Plus, Inc. Credit Plus offers three additional services that allow you to qualify more borrowers and dramatically increase your closed loans:

• ScoreWizard® – a leading edge

credit advisory tool with the What-If Simulator that quickly provides easy-to-implement suggestions for improving your applicant’s credit score.

• Score Plus – this program allows you

to update consumer credit information in 3 to 5 business days (rather than the standard 30 days), and generates a new credit report reflecting the update.

• PRBC Reports with FICO Expansion Score – an alternative

credit report that meets GSE and FHA standards, based on monthly payment data for items such as rent and utilities.


Now that you have them approved, close their loan faster…

Providing appraisal, title and settlement services in all 50 states, Ariston offers the fastest turn times across the country. Call us today to learn how combining your credit and title services results in greater cost savings and reduces time from application to close. ASPECT – It’s easy to add credit reporting to your website with ASPECT – Allow your borrowers to order and pay for their credit report from your website. The consumer receives a ScoreWizard credit score analysis to help understand and improve his or her credit score and a FACTA disclosure. You receive an immediate email notification referencing the credit report and score analysis for evaluation and processing. Offered exclusively by Credit Plus.



Combating Loan Fallout Know when to sever the ties. BY Marcus M. white


n the lending industry we spend a great deal of time building business relationships and performing product analyses for our client’s financing needs. The last thing we want to occur after spending months researching funding options, getting approvals, gathering supporting documentation and submitting packages to underwriters is for the deal to fall through; also, commonly known as “fall out.” Many times loan officers find themselves bewildered because the loan scenario makes sense. Why can’t it be closed? What could have been done to preempt the fall out? How could expectations have been managed better? How will the fall out affect the relationship with the borrower(s)? It is very important to know when to sever the ties with these flailing loans. Understand when you have truly exhausted all reasonable avenues and move on to the next loan scenario. Otherwise, you will create a “blockage” in your profit pipeline and possibly frustrate your client even more. Spending too much time on any one deal will ultimately hinder your marketing efforts and bring your hourly rate way down. Communication - The number one reason that many deals fall out is lack of proper communication between the lender and client. Where exactly the breakdown occurs is a moot point if the deal goes sour. Learn to be attentive to the borrower’s needs. Maintain contact 2-3 times per week initially and at least once per day in the two weeks preceding the close date. Reiterate the client's needs back to them and ask them why they are pursuing one particular option if others are available to them. Sometimes borrowers request certain loan products because they are familiar with them, or someone they know recently received a similar deal. Demonstrate why you are the loan expert by outlining all the pros and cons to every option and why they should

consider one over the other based upon their specific financial goals. "Often times applicant's walk into the loan process with unrealistic expectations." says Charles Kapur, Assistant Vice President, Virginia Commerce Bank. "It's up to the loan officer to counsel a client and draw a map of the process.” Additionally, everything that may be required in order to reach the end product should be disclosed up front.

Lender Fees - Loan officers should always present lender fees in a timely fashion and prepare the borrower for the possibility of unforeseen costs associated with things such as special appraisals, broker charges, title liens, etc. If you’re dealing with “hard money”, bridge or mezzanine loans, the fees are typically higher and sometimes require an equity position as a condition of financing. If a client is not aware of these features, the loan could very likely fall out. Again, managing expectations early on will prevent many delays in the process. Fair and honest fee structures will make asking for repeat business and referrals much easier. In order for the borrower to make a clear determination as to whether or not a particular financing option is suitable for their situation, they must be aware of all the specifics of the respective funding program. Credit - A credit report is generally requested early in the pre-approval process of an application. However, the time from the pre-approval stage to the close date may span from 30 to 45 days or even more in some cases. Therefore, it is critical that you advise your clients to monitor their spending habits, payment histories, etc. A loan program may require certain debt service coverage ratios (DSCR) and any new debts could cause the deal to fall out. Explain the importance of maintaining debt ratios with the borrower from a loan perspective as well as from a financial planning perspective. You should also advise clients to keep their revolving lines of credit below 50 percent of their available lines. They may


#1 BROKER SOURCE FOR LOAN MODIFICATION • Attorney Based Company • The most broker friendly program in the industry • No Setup Fees for Licensed Brokers/ Loan Officers • Volume Discounts Available • Ongoing Training & Support • Best Broker Compensation Available

Let Our Attorneys Work For You

To become part of the Nationwide Home Relief Team

Call 1-877-368-7266

actually see an increase in their credit rating before the loan closes which could subsequently result in a lower interest rate. Appraisal - How many times do we happen upon a property owner who sees more value in his/her property holding than the actual true value? Generally, their perceived value is based on intangible items, such as sweat equity, the length of time the business has been in the family or comparison of the sales price with the business “across the street.” The commercial appraisal is extremely comprehensive, expensive and can take upwards of a month to complete. An uneducated borrower may not understand the timeline if it is not articulated well and early on in the process. Rarely are any two commercial buildings the same and the property’s income is a major factor in determining its overall value. Prepare the client for the likelihood of lower than expected values. Additionally, construct alternative plans that incorporate higher loan to values (LTV) in addition to the plans for the optimal return on the appraised value. Being able to present options despite the actual appraised value not only demonstrates a value added service and benefit, but will give you other opportunities to engage your client during the tedious appraisal inspection process. Conclusion - There are never any “sure things” when dealing with loan scenarios. Even a “clean cut” residential, Fannie Mae loan could fall out. The best anyone can do to preempt as many problems as possible is to be prepared for the worst case scenario. More importantly, prepare the client for the worst case scenario. Ultimately, everything reverts back to proper and frequent communication, management of expectations, full disclosure and due diligence. Although fall out is a bitter pill for both you and the client to swallow, they will respect you more and value your efforts if you take them on the journey with you versus meeting them at the finish line. Marcus M. White is a Sr. Mortgage Banker & Manager at Dynamic Capital Mortgage (formerly Pinnacle Financial Corp.), a national residential and commercial lender in Vienna, Va. White is a published author and featured speaker in various media outlets and classrooms. White is a Certified Mortgage Planning Specialist TM, financial counselor and former institutional investor, representing clients in complex financial matters. White has significant expertise in sophisticated financing transactions, retirement and investment planning. Contact White at or (202) 210-0089.




oanAce, initially released in August 2006, is loan origination software (LOS) developed by Teravendo, Inc. LoanAce was designed for ease of use, simple navigation and provides every feature and function that a processor or loan officer would need. Most industry professionals pay a sigJennifer Glenn president nificant amount of money each year for their LOS, but LoanAce delivers its quality LOS solution to mortgage originators FREE of charge. How was LoanAce originated? LoanAce was originally the idea of a wholesale lender; it was primarily to offer a free LOS as a means to advertise. At first, it was intended to be a “bare-bones” functional LOS – I believe the developer quoted a cost of $65K. During development, we knew it wouldn’t matter what we thought the industry should want; success would ultimately be determined by the market – so we gave originators what they wanted. Before deciding what would be integrated, we polled originators about what was important and truly valuable to them. $2 million dollars later, LoanAce turned out to be a fully-functional LOS with many robust features – everything loan officers and processors would need. There are even a few luxuries many wouldn’t have thought of. How were you able to gain market share so quickly? Actually, when we first released LoanAce in 2006, gaining traction in the market was a challenge. Despite our marketing efforts, many people had not yet heard of LoanAce. Additionally, it seemed those we did reach were waiting for everybody else to adopt the idea first and then perhaps would follow if there was no bad news. Unfamiliarity was our biggest obstacle.

Needless to say, initial industry adoption was disappointing. We thought most people would be inclined to switch to a fully functional FREE LOS. It was apparent that aside from price, or what LoanAce offered, getting the word out to the masses was mission-critical. So in addition to advertising, we forged business relationships with industry leaders. It was assumed some would be hesitant to change simply because they were used to their LOS – I think its human nature. But we also knew people would consider switching if we made it easy. LoanAce is a great LOS solution. You can import all of your files from another system and it is offered for free – switching is simple. Over time, we have started to see the network effect. The more people that downloaded and used LoanAce, the more familiar the name became to the market and in turn, the number of people downloading and using LoanAce has grown exponentially. We are very excited to see so many new users adopting LoanAce daily! Early this year, an industry resource estimated over 10% of loan officers not employed by large banks use LoanAce. Interestingly, the adoption rate varies by region – we imagine this could be attributed to what has proven to be our most powerful marketing tool – word of mouth. At our current pace, we think 50% of originators could be using LoanAce by 2011. There will always be some that prefer another LOS just like some people prefer vanilla ice cream over chocolate. Why is LoanAce FREE? Here’s some food for thought: There has never been any other LOS that was free. Mortgage companies and loan officers spend hundreds, if not thousands on their LOS every year; however LoanAce allows them to save those dollars. I think the real value in our software is offering services loan officers truly need in a convenient



way. Nobody likes their intelligence insulted with being sold on unnecessary services. And in today’s market, every penny counts. Surprisingly, I think free is somewhat of an obstacle because it can tend to devalue the software in peoples’ minds. Although now that we have gained acceptance by a substantial percentage of the industry, credibility as a quality LOS only arises for the few that haven’t heard much about LoanAce yet. Okay, let’s talk revenue. What is the strategy for profitability if you aren’t charging users a fee? First, and luckily for us, those financially backing the development work were willing to continue investing without return; they believed it was only a matter of time before LoanAce would start to corner the market. It’s looking like they were right. Second, we have integrated vendors that help us generate revenue. Through a patent-pending process, EZORDER matches the zip code of the user or borrower, depending on preference, with a vendor in the system. Originators can order title, insurance and appraisal using EZORDER. A “Secure Electronic Courier Fee” is generated that the vendor pays us each time an order is submitted. Are there any specific features that you want to talk about? We have all the standard LOS features, but EZORDER is the newest unique feature and it was immediately popular! When users need to order title for example, they can send the order electronically to their vendor's local office. EZORDER provides users with the agents’ company information next to their smiling face. The borrower data is auto-populated and sent electronically with a single

click. Users can even select a vendor that is local to the borrower if they are working with a borrower in a region where they aren’t familiar with vendors. In turn, using EZORDER as the primary revenue source enables us to keep LoanAce free to loan officers which seems to be a great incentive when we ask them to start use it! We have very loyal LoanAce users and we are grateful for their support. Can you tell me about TEAM? Yes. TEAM provides a pipeline management view solution that allows brokers to view all loans in process throughout their company – which we offer free of charge. Files can be audited for compliance and quality control prior to the loans funding. TEAM has already been adopted by many mortgage companies with a number of loan officers because they want to be able to review all files at anytime during the origination process. Moreover, regulatory agencies want to know that brokers are managing their loans from start to finish, rather than just trying to put out fires after the damage is done. Our competitors offer similar products, but they are extremely expensive. Why do you think LoanAce is the best LOS on the market? In my personal opinion, some of our competitors seem to continually invent new bells and whistles that may or may not be applicable to everyday business to justify their license fees. The problem with doing this is vital features eventually get lost beneath features that are of very little use in practice. We keep it simple. We provide everything needed to originate loans without the distracting or confusing features. According to our latest user survey, 82% of everyone that downloads LoanAce continues to use it. Because it’s free, we thought many would download out of curiosity. But given these results we are definitely on the right track. Why do some choose to pay for their LOS rather than switch? I remember receiving a call from a phone company that promised better service and pricing with an offer to switch that I couldn’t refuse. It seemed to make sense and I made the plunge....into 3 weeks of phone hell until I was able to switch back. We have all had those “too good to be true” experiences and they make us fearful to change even when


everything appears make sense on the surface. I imagine there is a similar natural reluctance when people look at our LOS for the first time and may wonder: â€œâ€Śso what’s the catch?â€? But, [more] food for thought: We’ve also all experienced paying too much on our cell phone or insurance plan for years and find out switching to another, better option would’ve saved hundreds or thousands. Hind-sight is 20/20 – we tally up what we could’ve used that money for “if only we could get it backâ€?! Sometimes we are right, but we often end up spending more money than we should have. What can a new user expect when they download LoanAce for the first time? Like anything new, LoanAce will look a little different the first time but, once you are familiar with it, your previous LOS will soon look foreign to you. While I don’t want to sound overly presumptive, I think we do have the best program to offer and a business model that would be hard to beat. We have consistently been adding thousands of users and it would appear we are on our way to becoming the standard in the industry.

I have to ask – do you have a prediction for the industry? I am no economist but, as most know, the market is cyclical. I think hysteria is causing buyers to be uncertain, keeping them away from buying now, further pushing prices down. I think values will be artificially deflated below the real value because of housing market pessimism. When buyers realize that prices are not going to drop any farther, I think buyer competition will cause the market to pick up. Stability in the value of the collateral will cause lenders to feel more comfortable with reasonable risk. If I was to guess, I think things will be tolerable by the second quarter of next year and return to a good market again in 2010. Where can I find LoanAce? To download LoanAce for FREE, go to and you can start using LoanAce immediately! The Web site has a lot of great information about LoanAce and TEAM – including a few short demos to help users get started.

Tellus Capital is a direct private money lending company specializing in commercial properties. Loan amounts from 200K to 5MM. • Lending Territory includes CA, AZ, WA, NV, OR, AZ and UT. • No Minimum FICO • No Seasoning • 24hr turning time on approvals. • 7 day funding time with completed loan package. Please email a summary request to or check out our website at 4&BTUFSO"WFOVF -BT7FHBT /7tUFMtGBY

Hard Money Loans from $100,000 to $1,500,000 • • • •

Minimum Credit 400 No seasoning No up front fees 48 hour closing


We’ll help you put the pieces together.

For an immediate online approval and commitment letter, go to WWW.FMV1.COM and fill out our loan qualifier.

6019 Tower Court, Alexandria, VA 22304 Phone: 703-823-6800 or 866-902-FMV1 (3681) Fax: 703-997-2499 Paul Fogle or Art Bennett

First Mount Vernon is a privately-owned, equity-based lender which specializes in lending to borrowers who can’t secure funding from traditional financing sources. Loans typically funded within two business days upon receipt of completed package. First Mount Vernon does not make consumer loans. Financing is for business or investment purposes only, secured by real property.


We originate commercial loans in all 50 states as well as FHA and Residential Loans in CA, NV, OR and AZ. SIGN-ON BONUS based on experience/licensed.

For Qualified Candidates: • Benefits Package • XLNT Commission Structure Fax resúme (888) 450-7907 or call John Miller (800) 530-2489 ext. 301 or email to




eople. Our business is all about people. Your success is all about satisfying these people. Their satisfaction starts with your meeting them. If you do not impress people with your initial contact, you may not have a second chance to impress, and then satisfy these people. Ultimately, not developing a reputation of being successful by creating a list of people you served to their satisfaction and beyond will be the consequence. None of us can afford this. So how do you meet, impress and capture the attention of people at first contact? The “elevator speech.” There are four key elements to the elevator speech as I see it. The first is the purpose. So, what is an elevator speech? My definition: It is a semi-scripted verbal presentation that describes who you are, what you do, how you are ‘unique’ and it is recited inside of the time it takes to ride an elevator to a designated floor; thus, the name: elevator speech. With this in mind, when you set foot in an elevator, you are with another person or a few other people, start a conversation with your elevator speech. When the door is opening, you will state you would like to finish the conversation later and can you call the person. The exchange of contact information is the goal. The elevator speech is the device to obtain the goal. The second element is the ‘hook’ to describe why you are unique. Develop a phrase or slogan that rhymes, is a pun, or is a catchy saying that is memorable. Mnemonics is a powerful tool for humans to remember things; it is the memory tool. According to Wikipedia,

( “A mnemonic device (pronounced /numonik/) is a memory aid. Commonly met mnemonics are often verbal, something such as a very short poem or a special word used to help a person remember something…. Mnemonics rely on associations between easy-toremember constructs which can be related back to the data that is to be remembered. This is based on the principle that the human mind much more easily remembers spatial, personal, surprising, sexual or humorous, or otherwise meaningful information than otherwise meaningless sequences…..”

You have a short time so make every word count and with a hook, you will be remembered. The third element is attributes or contents. Attributes are the important characteristics of who you are. Two attributes are about all you can fit in the short time of the elevator speech. Contents, I define as the use of each word carefully and succinctly so no time is wasted in your presentation. The contents of your elevator speech support the purpose. Include your job, what makes you unique and include an open ended question to engage the audience and to start a conversation or a reason to contact the person in the near future. The fourth element is timing. Be able to recite your elevator speech within anywhere from 17 seconds to 30 seconds. If you know you have dedicated attention from your audience, you may be able to squeeze out one minute. So, you can have a short, medium and long version. The short version is the core; has all four elements at the minimum. The medium version has two more sentences to describe more attributes to add value



to your minimal core speech. The long version can add embellishing information that is not necessarily vital, but can specialize your speech to the specific audience. Put it all together, and you have an elevator speech that may be similar to this: “Hello, I am Stewart, I write for The Niche Report on topics that enhance relationship development, sales, and personal empowerment of mortgage professionals. ‘From Contact to Contract’ is how I can help you. What mortgage magazines do you read?”

Stewart Mednick is a seasoned mortgage banker and published author. His writing focuses on relationship development, personal empowerment, customer satisfaction, marketing and sales techniques. Stewart is available for marketing consulting, personal coaching and training sessions. If you have a comment or a question for Stewart, contact him at 651-895-5122 or

My speech will take about fifteen seconds. I state who I am, what I do, for whom I do it, a mnemonic device is used as a hook and explains why I am unique, and I end with a question to engage the listener. I stated in the onset of this column, that the elevator speech is “semi-scripted.” This means that you should have key words, a hook and the basis for final question memorized. The rest will or can be altered every time you recite your elevator speech. You never want to come across as a telemarketer by sounding mechanical with a totally memorized script that you repeat to everyone the same way. I know that 17 seconds leaves little time for adlibbing. However, you may have 30 seconds more frequently. Adding two sentences can give you much needed latitude for variation. How can you remember what are the elements of an elevator speech so you can ensure you have all of them in yours? P-H-A-C-Ts (Purpose, Hook, Attributes or Content, Timing) or as Sergeant Friday would say on the old TV show, Dragnet, “…just the phacts, Ma’am…just the facts….” That’s my mnemonic device for you. Contact me if you would like an opinion or coaching on your elevator speech.


MORE Lenders, MORE Programs, & MORE Ways to Search

LENDERLAB.COM (800) 339-1863

Niche . Alt-A . Non-Prime . Commercial . DPA . High LTV . Hard Money . Commercial


PRIME & FHA Premium Listings

AHEDIRECT.COM/ Freddie: The RainMaker

Fannie, Freddie, FHA, 24-48 Hour Turn Times


Alternative Mortgage Express 801-671-2397

Greystone Financial Group

Common sense underwriting for FHA, Conforming, Jumbo, Jumbo FHA/ Conforming, and manufactured housing. CONFORMING, FHA VA, USDA, SISA, COMBO LOANS, LP LEVELS 1,2 & 3


JMAC Lending Inc

Same day doc and 24 our funding, 1 day off the market refinance


Mid Island Mortgage Corp.

Low/No Score FHA manual underwrites. Tough FHA deals OK. No min. Score Jumbo loan amounts. Common sense underwriting w/good turn times.

703-754-9643 - Tim Dooley

Titan Wholesale

Wendy Edwards (775) 303-3838 cell; 866-922-6943 fax,

877-90-Titan ex. 225

United Wholesale Mortgage 800-981-8898 x5638

Wall Street Wholesale

FHA 24-48 Hours on Approve/Eligible Loans. 24 Hours on Conditions. 24 Hours to Prepare Closing Docs. Close Your Loan in 5-6 Business Days. Collections do not have to be paid. 95% Cashout on Manufactured Homes. FREE DU on our Website. Conventional/Agency Jumbo, FHA/FHA Jumbo, 203k, Manual UW, 48 hr turntime UW. 5 Points of Contact with Inside Team!

248-361-1908 PRIME Lender Listings Powered by Alternative Mortgage Express


Bank of Ann Arbor (Fannie/Freddie only) 800-807-6337

AME Financial Corp


Bank United

Ameribank Mortgage (FHA only)


Century Lending (Fannie/Freddie only) 407-252-7979

American BancShares


Chase Home Finance


American Financial Resources (FHA only) 973-588-8530

Chase Rural Housing


American Home Equity


Chevy Chase Bank (Fannie/Freddie only) 866-591-4355

American Partners Bank


Citi Mortgage (Fannie/Freddie only)


American Sterling Bank


CMG Mortgage


Amtrust Bank (Fannie/Freddie only)


CNB National Lending, LLC


Assurity Financial (FHA only)


Colonial National Mortgage



BAC Florida Bank (Fannie/Freddie only) 305-789-8064

Banco Popular



(Fannie/Freddie only)

Community First Bank Loan (Fannie/Freddie only)

Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consumers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.



PRIME Lender Listings continued‌ Continental Home Loans

631-393-3800 x 114

Mountain West Financial

909-793-1500 x 255



National Direct Funding


Direct Mortgage Wholesale


(Fannie/Freddie only)

Downey Savings and Loan


National Home Lenders

888-344-0520 x 4

Nations Direct Mortgage


NetMore America


(Fannie/Freddie only)

Eastern Savings Bank

800-981-7114 x 6250

Epix Funding (Fannie/Freddie only)

813-654-7515 x 223

NorthStar Lending (Fannie/Freddie only) 954-843-7018 x 7018

Equifirst (FHA only)




Federal Trust Mortgage

407-323-1833 x 153

Pacific Banc Mortgage


Fifth Third


Pacific National Bank


First Bank Mortgage

305-577-6000 x 116

Paramount Residential (FHA only) 866-966-8989 x 300

First Cal


Perfect FHA (FHA only)


First Federal Bank of CA


Phoenix Funding

877-562-6414 x 230

First Horizon Home Loans


First Mutual Bank


Plaza Home Mortgage

949-910-1055 x 450

First National Bank of Nassau


PMC Bancorp

626-964-4040 x 8199

First Northern Bank


Polaris Funding (FL, IN, MI, OH)


Popular Direct

800-692-3447 x 202

Poulsen Mortgage

(Fannie/Freddie only)

Flagstar Bank


Florida Capital Bank Mtg


Fort Knox Lending



Fortes Residential


Franklin American


Franklin Bank


Preferred Capital (Fannie/Freddie only) 727-418-4189

Premier Mortgage Capital, Inc.

786-243-3101 x 2

Presidents First


Primary Capital


Proto Fund


800-733-3657 x 1712

Freedom Mortgage


Provident Funding

Gateway Bank, F.S.B.


Reliant Funding

412-942-1010 x 18

Gateway Funding


Residential Lending Network

800-749-5363 x 5276

Gateway Mortgage Group


GB Mortgage


Reunion Mortgage


Global Lending Group


Royal Crown Bancorp


Greystone Financial


Security Atlantic (FHA only)


GSF Funding


Security Mortgage Funding


Guaranteed Rate


Hollander Financial


Home Savings of America




(Fannie/Freddie only)

(Fannie/Freddie only)

Security National Mortgage


Senderra Funding


Sierra Pacific


SouthPoint Financial




SunTrust Wholesale


SWC Financial Corp.

714-680-7050 x 113

Taylor, Bean & Whitaker


The Jumbo Lender


The Money Store


Titan Wholesale

775-852-6888 x 225

Trust One Mortgage

949-450-1888 x 2430

U.S. Bank Consumer Finance


ICON Residential Capital


ING Mortgage


JMAC Lending


Just Mortgage, Inc.


Lenders Advantage

818-669-0974 x 0

Liberty Lending Inc


Liberty Mortgage


Liberty Savings Bank


Lime Financial


Loan Link Financial


M&T Bank Mortgage


United International Bank


Mango Bay Mortgage


United Residential Lending


Mega Capital Funding


United Wholesale Mortgage (FHA only) 800-981-8898 x 5590



Merit Mortgage


Village Capital and Investment


MetLife Home Loans

(FHA only)

Mortgage Bank of California


(Fannie/Freddie only)

(Fannie/Freddie only)

(Fannie/Freddie only)

Wall Street Wholesale Lending


Mortgage Close (Fannie/Freddie only) 714-453-0220

WCS Lending (FHA only)



Wells Fargo



Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consumers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.


October 2008


NON PRIME & ALT–A Premium Listings

Capital Management

Chattel loans for manufactured homes in communities, purchase or refinance


Direct Portfolio lender specializing in funding loans traditional lenders cannot. NOD or BK OK. No Credit Score. No Pre-payment Penalty. Up to 75% LTV. Loan amounts up to $1MM. Lending territory: AZ, CA, CO, ID, NV, OR & WA

Gregory Funding LLC 888-324-3578

Mid Island Mortgage Corp.

Low/No Score FHA manual underwrites. Tough FHA deals OK. No min. Score Jumbo loan amounts. Common sense underwriting w/good turn times.

703-754-9643 - Tim Dooley

NON PRIME & ALT-A Lender Listings Powered by NorthStar Lending

954-843-7018 x 7018

Royal Crown Bancorp


Online Financial Group


Security Mortgage Funding Corp


Pacific Banc Mortgage


SouthTrust Funding


Paramount Residential

866-966-8989 x 300

SWC Financial Corp.

714-680-7050 x 113

Phoenix Funding

877-562-6414 x 230

The Jumbo Lender


Plaza Home Mortgage

949-910-1055 x 450

Trust One Mortgage

949-450-1888 x 2430

Portfolio Mortgage Company


United International Bank


Preferred Capital


United Residential Lending


Proto Fund


US Bank


Quik Fund Inc.


US Equity Broker Direct


Rehab Funding

610-645-9939 x 310



Right Start Mortgage


West One Mortgage Corporation



Reverse It! A division of Urban Financial Group, Inc

Reverse Mortgages, fastest turn times in the industry. Training and lead support available.


World Alliance Financial

Reverse Mortgage opportunity for non-FHA licensed brokers

877-692-7762 x 404 Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consumers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.



REVERSE MORTGAGES Lender Listings Powered by American BancShares



Arlington Capital Mortgage Corp


Liberty Reverse Mortgage


Circle Mortgage Corporation (Fl only)


NetMore America


Continental Home Loans

631-393-3800 x 114

Pacific Banc Mortgage


Countrywide Bank


Quality Life Reverse Mortgage


Essex Mortgage


Quik Fund Inc.


Financial Freedom


Silvergate Bank (cml)


Financial Heritage


SouthPoint Financial Services


First Horizon


Wells Fargo Reverse Mortgage


Fortes Residential


World Alliance Financial Corp.


Generation Mortgage


HARD MONEY Premium Listings

All California Home Loans 877-462-3422

Commercial and Residential hard money, California properties, max LTV 65%

Ambit Funding

Short-term commercial bridge lenders; Most property types including RAW LAND; All 50 states, and Canada; Max LTV 70%, 50% on Land


Asset Funding Group 866-398-8916

Avatar Financial Group 888-896-0083

BRT Realty Trust 516-466-3100 or 800-450-5816

Continuum Funding Group 703-564-1659

Fairview Commercial Lending 866-634-1270

Direct lender - up to 70% LTV: Bridge loans, purchase & rehab, construction financing, raw land, no minimum credit score requirments. Nationwide lending from $300k to $3 million, 24 hour commitment as fast as 5 days to close. HARD MONEY- MADE EASY Bridge loans for improved commercial real estate from $1 million, terms up to two years with no prepayment penalties. We are a direct lender and brokers are protected. Apply online at or simply give us a call A Public Mortgage REIT Traded on the NYSE (NYSE: BRT) Fast response on loans from $2 million to $50 million on income producing commercial properties nationwide. No prepayment penalties, lock out or exit fees Specializing in hard money loans of $300,000 to $5,000,000 in DC, Virginia, and Maryland. We customize our lending program to fit your needs on a deal by deal basis No minimum credit score, foreclosure bailouts, Quick Closings nationwide, commitments in 24 hours

Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consumers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.


October 2008


HARD MONEY premium niches continued…

First Mount Vernon 866-908-FMV1 (3681)

No seasoning requirements, No upfront commitment or processing fees, Minimum credit score 400

First Mount Vernon

Minimal documentation required, Combined Loan-to-Values to 105%

866-908-FMV1 (3681)

Gregory Funding LLC 888-324-3578

Kennedy Funding, Inc. 800-342-8500

LJL Funding

Direct Portfolio lender specializing in funding loans traditional lenders cannot. NOD or BK OK. No Credit Score. No Pre-payment Penalty. Up to 75% LTV. Loan amounts up to $1.0MM. Lending territory: AZ, CA, CO, ID, NV, OR & WA Mortgages/loans secured by real estate, all commercial property types and other fixed assets nationwide; Any property type, even raw land. Specializes in development loans that need to close quickly, loans from $1 million & up. 2-days for commitment.


FC Bailouts - No FICO requirements. Focused strictly on the residential market. Tech oriented direct hard money lender. Consistent Guidelines Great Service!

Manaseh, Epharim & Associates

Private hard money financing for commercial real estate investments


Metro Funding Corp 866-302-6360

Miner Capital Funding, LLC

Fast closing, no points upfront, all commercial properties including land, acquisitions, refis, and development loans


Specializing in collateral-based real estate loans nationwide. We get deals done!! As fast as 4 days! Loan amounts 1 million to 20 million

Remington Financial Group, Inc

Up to 65% of valued collateral, fast closing


Seasoned Funds Company & Aster Capital 877-226-6260

Stonecrest Financial 888-884-6518

TrustCapital Investments, LLC 301-503-2231

Use our funds & close your deal. Seasoned proof of funds and soft escrow deposits. Brokers protected worldwide. Low rates. Apply online: We are a direct lender specializing in churches, mixed-use, apartments & commercial lines of credit Local direct lender (DC, MD and VA) specializing in bridge, construction, rehab and business loans. Loans are based on “subject to value”, 50% LTV, minimal documentation, EQUITY DRIVEN not FICO sensitive. Brokers are protected.

Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consumers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.



HARD MONEY premium niches continued‌

Direct lender specializing in HELOC 1st and 2nd position loans between 25k to 250k.

Unifund Financial Group, Inc. 619-987-1083

All property types, any condition. Including construction, re-hab, land, development. LTV based underwriting. No prepayment penalties, discounted pricing for short term. Fast approvals and closings. Direct Lender in WA, OR, ID only

WADOT Capital, Inc. 206-362-4444

HARD MONEY Lender Listings Powered by A The Loan Doctors, Inc


HMC Funding

800-273-7001 x 343

Advantage Capital Equity Solutions


Investor Funding


AFC Hardmoney

813-387-3800 x 311

J & J Financial


AgriCap Financial Corporation


Kennedy Funding


All California Home Loans



Lakeside Financial Inc.


Lib Properties, LTD.


LNB Commercial Capital


com/hard-money.html Alliance Financial, Inc.


Ameribank Mortgage


Mager Capital


American Acceptance (cml)


Magnolia Financial Consultants


Assurity Financial


Mango Bay Mortgage


Avant Capital Partners, LLC. (cml)


Meridian Group


Axiom Commercial Funding

866-637-3014 x 10

MiStar Financial (cml)


Bay Equity


Multicorp Financial

925-275-8111 x 222

BFS Capital, LLC. (cml)


Normandy Mortgage


BlueWater Funding, LLC


Overland Financial


Pacific Mortgage Funding Corporation


Brookview Financial

877-734-2211 x 316

California Equity Lenders


Capital Alliance


CFA Capital Partners (cml)


Commercial Bridge Loan Funding


Commercial Hard Capital, LLC (cml)


Commercial Loan Capital (cml)


Commercial Mortgages 101


Crawford Park Financial


Cushman Rexrode Capital Corporation


Diamond Bay Investments, Inc.


Eastern Savings Bank (cml)



PB Financial Group Corp.


Piedmont Capital Lending, LLC.


Porter Bridge Loan Company (cml)


Portfolio Mortgage Company


Quik Fund Inc.


Rehab Funding

610-645-9939 x 310

Remington Financial Group


Right Start Mortgage


SBB Financial


SDI Funding

864-233-3337 x 3220

SmartServ Solutions


714-680-7050 x 113


Emerald Financial


SWC Financial Corp.

Exeter Holding Ltd.


Swift Funding


First Credit Commercial Capital Corp.


TCRM Commercial Corp. (cml)


The Loan Doctors, Inc. (cml)


First Mount Vernon Industrial Loan Asso. 703-823-6800

The Money Source, LLC. (cml)


First Select Capital


Titan Hard Money


Global Lending Group


Trust Deed Investments, Inc


GMC Mortgage Capital


Unifund Financial Group, Inc.


Grand National Investments


West One Mortgage Corporation





WexTrust Capital, LLC


Hawkins Capital

208-908-5596 (cml)



Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consumers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.


October 2008


CONSTRUCTION Premium Listings

Kennedy Funding, Inc.

Mortgages/loans secured by real estate, all commercial property types and other fixed assets nationwide; Any property type, even raw land. Specializes in development loans that need to close quickly, loans from $1 million & up. 2-days for commitment.


Manaseh, Epharim & Associates 678-387-3230

Private lender specializing in commercial real estate loans nationwide and internationally Fast closing, no points upfront, all commercial properties including land, acquisitions, refis, and development loans

Metro Funding Corp 866-302-6360

Loan portfolio financing and warehouse lines of credit from $2MM $20MM for hard money lenders and investor rehab lenders. Reduce your local bank and private investor hassles with stable and consistent financing

RBA Capital 610-293-8008

Remington Financial Group, Inc 480-905-3239

Up to 95% financing construction, rehab, renovation, development, starting at $1 million and moving upwards, commercial only

CONSTRUCTION / REHAB Lender Listings Powered by Ameribank Mortgage


First Northern Bank


Assurity Financial


Hawkins Capital


Axiom Commercial Funding

866-637-3014 x 10

Kennedy Funding


Broker Capital Funding


M&T Bank Mortgage


Chase Home Finance


Mango Bay Mortgage


Colonial National Mortgage


Mission Oaks National Bank




Portfolio Mortgage Company


Excelsion Mortgage

888-578-5441 x 1

SWC Financial Corp.

714-680-7050 x 113

Federal Trust Mortgage

407-323-1833 x 153

United Midwest Savings Bank


First Mutual Bank

971-645-9140 wholesale/

Unity Bank




First National Bank of Nassau


West One Mortgage Corporation


ADVERTISE YOUR NICHES HERE WITHIN Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consumers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.



COMMERCIAL Premium Listings

AcuPen Financial

High LTVs, and low debt coverage ratio requirements


Avatar Financial Group 888-896-0083

Colorado FSB Commercial Division 303-771-1031

Fairview Commercial Lending 866-634-1270

Gregory Funding LLC 888.324.3578

Griffin Capital Funding 540-548-1001

Kennedy Funding, Inc. 1-800-342-8500

Manaseh, Epharim & Associates

Great rates on commercial real estate loans, fully amortizing up to 25 years. Most property types considered including hotels, multi-family and special-use. Full doc is required for these competitive rates. Please call to request a rate sheet Bridge/Construction $2 million + and perm loans for 18 commercial property types nationwide from $250K+

No minimum credit score, foreclosure bailouts, Quick Closings nationwide, commitments in 24 hours Direct Portfolio lender specializing in funding loans traditional lenders cannot. NOD or BK OK. No Credit Score. No Pre-payment Penalty. Up to 75% LTV. Loan amounts up to $1.0MM. Lending territory: AZ, CA, CO, ID, NV, OR & WA Church Loans from $75,000 to $30 million. Purchase, refinance, renovation and construction. No personal guarantees needed, no tax returns or audited financial statements Mortgages/loans secured by real estate, all commercial property types and other fixed assets nationwide; Any property type, even raw land. Specializes in development loans that need to close quickly, loans from $1 million & up. 2-days for commitment. Fast, flexible funding for all your commercial financing needs


Metro Funding Corp

Fast closing, no points upfront, all commercial properties including land, acquisitions, refis, and development loans


Mission Oaks National Bank

All owner/user/investor commercial real estate


Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consumers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.


October 2008


Remington Financial Group, Inc 480-905-3239

Tellus Capital

Senior financing on existing real estate all property types, competive rates

Direct lender specializing in first and second loans on income producing commercial properties


Specializing in Full and Simple Doc small balance commerical loans up to $5 M. Our unique Commercial Automated Underwriting System allows for instant approvals, including pricing options. No upfront fees! Experience ease of execution – call today.

Trilogy Commercial Lending 888-875-5055

COMMERCIAL Lender Listings Powered by 21st Mortgage 800-955-0021 x 1219 Acupen Financial 503-516-5823 Affinity Bank 877- 862-7245 AgriCap Financial Corporation 213-542-5232 American Acceptance 800-452-9287 Arlington Richfield 248-613-7423 Avant Capital Partners, LLC. 212-219-9419 Axiom Commercial Funding 866-637-3014 x 10 Berkshire Capital Financial, Ltd. 212-986-9890 Blue Sky Commercial Funding 888-500-2583 Brownstone Mortgage Capital 800-547-1285 Capital Alliance 415-288-9575 CFA Capital Partners 914-967-5780 Ciena Capital 800-722-5626 CIT Small Business Lending Corp. 404-244-4592 Coast Investors Capital 305-446-9125 Commercial Bridge Loan Funding 305-852-2569 Commercial Funding Corp 904-885-9977 Commercial Hard Capital, LLC 832-607-6778 Commercial Lending Capital 714-656-3943 Commercial Loan Capital 877-473-6984 Commercial Mortgage City 954-854-6853 Commercial Mortgages 101 800-763-3036 Community Commerce Bank 916-648-2680 Cushman Rexrode Capital Corporation 925-988-7200 Eastern Savings Bank 800-787-8187 Equity One Commercial 407-370-7843 Excelsion Mortgage 888-578-5441 First California Bank 818-670-7688 Griffin Capital Funding 800-710-6762 Hawkins Capital 208-908-5596 HMC Funding 800-273-7001 x 327 Integrity Financial Group 916-343-7559 Interbay Funding, LLC 877-207-6099 Kennedy Funding 201-342-8500 Lib Properties, LTD. 404-256-8600 Lighthouse Commercial 614-340-3894 LNB Commercial Capital 321-214-0585 Magnolia Financial Consultants 601-428-1005 Mango Bay Mortgage 561-347-9811 Met-West Commercial 866-766-4000

Midwest Financial Capital Minvest Financial Mission Oaks National Bank MiStar Financial MJM Capital Group Multicorp Financial National Business Finance Nationwide Commercial Lenders New World Commercial Lender Ovation7 Overland Financial Pacific Mortgage Funding Corporation Pacific National Bank PFA Capital, LLC. Phoenix Funding PNC ARCS Presidential Bank Pribank Provident Prudential Mortgage Capital Co. Quik Fund Inc. Reliant Funding REM Capital SF Partners Mortgage Silver Hill Financial Small Business Loan Source, LLC. St. Cloud Mortgage STA Capital Group & Advisors Strongtower Financial SWC Financial Corp. TCRM Commercial Corp. Terrace Capital The Money Source, LLC. Trilogy Commercial Lending, LLC. Union Bank of California Wachovia Bank Washington Mutual Wells Fargo West One Mortgage Corporation World Capital Bancorp, Inc.

317-844-7776 877-317-0260 951-719-1200 720-200-2600 480-628-1943 925-275-8111 x 222 954-495-4791 800-830-5940 x 1 561-628-2069 561-746-7858 818-342-2477 562-864-4006 305-539-7675 800-531-4589 877-562-6414 800-275-2727 301-652-1616 866-811-9217 800-733-3657 x 1712 888-263-6800 813-671-0712 412-942-1010 x 18 877-774-4240 305-774-0456 877-813-4685 512-215-2727 877- 653-3276 866-610-4141 800-333-9893 714-680-7050 x113 212-371-3933 212-671-1031 480-946-4000 877-726-9433 877-945-2265 916-787-9401 916-825-5432 800-840-5822 818-921-7602 866-303-6301 888-922-3003

Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consumers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.


5)&-0"/1045 XXX5IF-PBO1PTUDPN




AcuPen Financial, LLC The Premier One-Stop Commercial Mortgage HUB

a la mode, inc.

Ambit Funding Contact: Chris Bednar Phone: (570)-829-2101 (800)-823-7101 Email:

America One Finance Contact: Matt Simmons Phone: 425.641.4658 x117 Email:

Asset Funding Group Contact: Loan Submission Phone: 866-398-8916 Email:

Avatar Financial Group Contact: Allison Payne, Loan Analyst Phone: 888.896.0083 Email:

BRT Realty Trust Contact: Mitch Gould Phone: 516.773.2712 Email: Capital Management Contact: Louis Lantz Phone: 480.575.1782 Email:

CityLights Financial Express, Inc 800-530-2489 ext 301

Continuum Funding Group Contact: Evan Kaplan Phone: 703-564-1659 Email:

Credit Plus Inc. Phone: 800.258.3488 Fax: 800.258.3287 Email: Direct Marketing Associates Phone: 888.312.9594 Email:

DocMagic Phone: 800.649.1362

Fairview Commercial Lending Phone: 866-634-1270 Fax: 404-634-0319

First Mount Vernon I.L.A. Phone: 703-823-6800 Fax: 703-997-2499

Gregory Funding LLC Phone: 888.324.3578 Fax: 503.226.4699 Email: Hard Money Funding Phone: 208-772-7334 Email:

KENNEDY FUNDING, INC. Contact: Jonathan Weiner, Chief Loan Officer Phone: 800-342-8500 Email:



LJL Funding Contact: Phil Jemmett Phone: 888-456-0246 Email:

Pittbull Mortgage School Contact: Leonard Rosen Phone: 858-736-7788 Email: PitbullMortgageSchool@gmail. com

LoanAce M & J Loans, LLC Contact: John Berardino Phone: (540) 548-1001 ext 104 Fax: (540) 548-1117

Madison Credit Management Services LLC Contact: Roger Castile Phone: 856-866-9878 x4320 Email: Manaseh, Epharim & Associates Contact: R.D. Walker Email: Phone: 678-387-3230

Metro Funding Corp Contact: Jennifer Smith Email: Phone: 866-302-6360

Nationwide Home Relief Phone: 877.368.7266 Miner Capital Funding, LLC Phone: 702-466-8952 Fax: 314-667-3092


October 2008

Precision Loan Processing Phone: 703.743.9739 Email:

Stonecrest Financial Contact: Bill Phone: 888.884.6518 Email: Tellus Capital Contact: Daniel Singer Phone: 619.818.6248 Email:

Trilogy Commercial Lending Phone: 888-875-5055 Fax: 407-523-6946 Email: RBA Capital Andy Niesen or Dan Murphy 610.293.8008 or dmurphy@

Remington Financial Group, Inc Contact: Aaron Enright Phone: 480.905.3239 Email: Urban Financial Group, Inc. Contact: Matt Klaus Phone: 888.777.3311 Email: Seasoned Funds Company Inc. Contact: Dr. Mitch Holland Phone: (877) 226-6260 Email: 877 392 4940

TrustCapital Investments LLC Craig Severson 301-503-2231

Unifund Financial Group Inc. Contact: Tyson Hempel Phone: 619-987-1083 Email:

WADOT Capital, Inc. Erik Egger or Craig Halpin Phone: 206.362.4444 Email: OR ch@


Fast. Flexible. Fair.

r4ĎĺIJ%ÄŽĹˆ"ĽĽŀğńĎĚ)ÄźĹƒĹ€$ĚğŠĜĝĴ r/Äź*ĝİğĺIJ3Ä˛ÄżĹƒÄśĹ€Ä˛ÄşÄ˛ÄťĹ‚Ĺ "ĚĚ$ŀIJĹĜł$ğĝŠĜĹIJŀIJĹ r"ĚĚ1Ĺ€ÄźÄ˝Ä˛Ĺ€Ĺ‚Ĺˆ5ĹˆÄ˝Ä˛Ĺ "ÄťĹˆ$ğĝĹĜłĜğĝ r-ğĎĝŠĹ‚Äź*ÄťÄąÄśĹ„ÄśĹƒÄŽÄšĹ Ĺ‚Ĺ€ĹƒĹ Ĺ‚Ĺ --$Ĺ  r%ÄśĹ Ä°ÄźĹƒÄťĹ‚Ä˛Äą1ŀĜİĜĝĴijğŀ4ľğŀł5IJŀĺ  $PNQMFUF1BDLBHF$PPQFSBUJWF&TDSPX

Specializing in the immediate funding of loans to borrowers with cash down or existing real estate equity. /P4PVSDFPS4FBTPOJOH3FRVJSFE


Lending in Washington, Oregon, and Idaho




11:27 AM

BODA Publishing, LLC PO Box 2618 Stafford, VA 22555

"TheNicheReport is nationally distributed to 20,000 real estate finance professionals."

Page 1

Gold medalist Bryan Clay had two days to prove he deserves to be called “the world’s greatest athlete.”

Bryan Clay 2008 Olympic Decathlon Gold Medalist

Kennedy Funding is a registered trademark of Kennedy Funding, Inc.

What’s your gold? We might be able to fund it, even if others have turned you down. And we’ll do it in record time.


Commercial real estate loans for all situations. How can we fund you?

TNR - October 2008  

Feature Article "Why Your Loan Production is Where it is Today"

Read more
Read more
Similar to
Popular now
Just for you