CRE Finance Podcast with Todd Tretsky: Recent Episodes
Todd Tretsky
Learn all the tips tricks about Commercial Real Estate Finance in Eatontown from Todd Tretsky and CRE Finance
Hi, today we are here to talk about residential real estate for investment purchases. We have a ton of clients who watch shows like “Flip this House” or “Flip Las Vegas” who are interested in using real estate as a means to build wealth. I am an investor myself, and have bought and sold over 30 properties in a 5-year period. Nobody knows better than me the blood, sweat, and tears involved in doing this.
At CRE Finance, we have developed a program that allows the residential real estate investor to purchase the property for 90 to 100 % of loan-to-cost. It doesn’t matter how many properties you own with this program, either. Even better, at CRE Finance, we understand residential investors write off a portion of their income. We don’t care about your tax returns, we care about the income that the property and your portfolio will generate.
This is a wonderful program that I’d love to discuss further with you. If you have any questions, feel free to give me a call or send me an email! Can’t wait to hear from you soon!Happy InvestingCRE-FinanceTodd Tretsky212-257-7305tt@cre-finance.com
CRE-Finance Announces a New Express Fix and Flip Loan ProgramHelping real estate investors grow their business by providing fast financing in a fast paced market.
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NEW YORK, NY, January 29, 2020 CRE-Finance announces a new Express Fix and Flip loan program. The Express Fix and Flip loan program expands CRE-Finance's suite of commercial debt financing products, which specialize in long-term and short-term commercial debt financing in the form of bridge, new construction and permanent financing.
"We are excited to offer an exceptional program to investors in the fix and flip market. Our program offers competitive rates, expedited service and a streamlined process," said Todd Tretsky, Managing Director at CRE-Finance. "This is a natural extension for us due to the industry knowledge and successful track record with our own fix and flip investments."
The Express Fix and Flip loan program offers real estate investors the ability to realize their investment goals and maximize their profits by leveraging quick access to financing through CRE-Finance. Investors can borrow up to 90% of the Purchase Price and 100% of the Renovation Costs with a maximum of a 75% After Market Value. You can be approved in minutes and close in 7-10 days.
CRE-Finance is committed to providing investors solid financing and a simplified process so investors can focus on their investments and profits.
CRE-Finance offers short-term financing for the purchase and rehab of non-owner occupied properties. CRE-Finance's Express Fix and Flip loan program offers the following:
Loan Terms- 12-24 Months
Loan Types- 1st Mortgage, Blanket Mortgages
Property Types- Investor 1-4 unit, condos/multi-family/ townhomes
Up to 90% of Purchase Price plus 100% of Renovation Costs (Not to Exceed 75% of ARV)
No Prepayment Penalty
Close in 10-15 days
For more information on CRE-Finance, please visit: cre-finance.com, follow us on Twitter, Facebook or Linkedin.
Commercial Real Estate (CRE-Finance) Expands Product Suite by Building Strong Relationships with PACE (property assessed clean energy financing) Lenders.Partially driven by securitization and strong investor appetite, property assessed clean energy (PACE) loans are forecasted to double over the next year and potentially become the fastest growing method of financing in the United States. Commercial Real Estate Finance (CRE-Finance) announced today that they are partnering with several PACE (property assessed clean energy financing) Lenders to help facilitate gap financing for their Debt Financing clients. CRE-Finance will offer this additional lending option for clients who are looking for additional equity financing for new construction projects in numerous asset classes including multi-family, hospitality, senior living or any commercial property.“We are very excited to be able to offer this cost-effective solution to our clients” said Todd Tretsky, Managing Member CRE-Finance.CRE-Finance, is the industry's premier boutique Real Estate firm. We specialize in long term and short-term debt in the form of bridge, new construction and permanent financing. CRE-Finance is experienced in equity placement and provides services for Real Estate Owners, Developers, Individuals and Entrepreneurs. CRE-Finance has over 50 years of expertise and offers numerous financing options to our clients through our strong relationships with the top lending institutions. We offer top notch customer service with innovative, competitive and reliable financing for outside the "bankable box."
For more information on CRE-Finance, please visit: cre-finance.com, follow us on Twitter, Facebook, YouTube or Linkedin, or call at 212-257-7305.
Commercial Real Estate Finance (CRE-Finance) Provides Construction Financing to RKTNJ, LLC. for Several Commercial Properties New Jersey.New York, May 28, 2019Commercial Real Estate Finance (CRE-Finance) announced that they have originated several million dollars in commercial loans to finance the development of several residential projects in Ocean and Monmouth County.Richard Kevin CEO of RKTNJ, LLC stated “ CRE-Finance’s high leverage, low cost of capital and reliability made this project possible”. CRE-Finance Managing Member Todd Tretsky stated “ CRE-Finance offers speed, flexibility and certainty of execution to structure custom-tailored solutions to complex situational real estate transaction”The financing was first mortgage construction loan to complete a subdivision of homes. The loan was underwritten to 77% of cost and 58% of net sell out value.About CRECRE-Finance offers customized solutions for small, medium and large size businesses. We specialize in debt financing for commercial real estate owners, developers, individuals, business owners and entrepreneurs. CRE-Finance overcomes common financing challenges for its clients and engineers prompt, innovative and reliable finance solutions outside the "bankable box".
Commercial mortgage expert Todd Tretsky: Explains Non-recourse loans, Bad Boy Care-outs from Self Directed Accounts.Finding a non-recourse commercial real estate loan is far more legally sophisticated than merely finding a commercial lender "foolish enough" to make a commercial loan to a borrower who wants to reserve the right to simply walk away from his obligation. Sometimes there are important legal reasons why a commercial loan simply must be a non-recourse loan. We'll discuss some of these important legal reasons further below. A non-recourse commercial real estate loan is a loan that is NOT personally guaranteed by the borrower. If the real estate investment goes bad, the borrower can usually simply walk away from the property.There are around seven to ten common exceptions, known as carve-outs, to this basic rule. If the borrower commits certain Bad Boy Acts - fraud, intentional waste (taking a sledgehammer to the walls), toxic contamination, placing a second mortgage on the property without permission, failure to maintain fire insurance on the property, failure to pay the real estate taxes, misappropriation of a condemnation award or any fire insurance proceeds, or certain criminal acts by the borrower - then many non-recourse commercial loans becomes a full-recourse loans. The borrower becomes personally liable.However, absent the commission of some Bad Boy Act by the borrower, a commercial lender cannot come back after the borrower for a deficiency suffered as a result of making a non-recourse commercial real estate loan. A deficiency is a loan loss left over after the property is sold in foreclosure.Obviously commercial lenders are not crazy about the idea of making non-recourse commercial loans. In fact, since the Great Recession the vast majority of all commercial banks making portfolio commercial loans today absolutely insist on a personal guarantee by the borrower.A portfolio commercial loan is a commercial loan that the lender intends to keep in its own portfolio, as opposed to a commercial loan that the lender intends to later sell off in the secondary market. CMBS lenders and ABS lenders (subprime commercial lenders who sell their scratch-and-dent commercial loans to Wall Street pools) are examples of commercial lenders who are not portfolio lenders.Bottom line: Since the vast majority of all commercial loans made today are made by commercial banks and credit unions, non-recourse commercial lenders are fairly rare. If you happen to meet a commercial correspondent lender CRE-Finance - who is willing to make a non-recourse commercial loan, be sure to make a note of it.Okay, so when is it legally necessary for a commercial loan to be non-recourse?1.Let's suppose you own a commercial property in your IRA. You may not legally personally guarantee your commercial loan from the bank without running afoul of the IRS. Personally guaranteeing your IRA's commercial loan, in the opinion of the IRS, lowers the interest rate to your IRA and is a form of disallowed contribution. (Code Section 4975(c)(1)(B))2.Commercial loans to Tenant-in-Common (TIC) investments must be non-recourse; otherwise the investments lose their tax-deferred qualification.3.Certain irrevocable trusts have a trustee who is separate from the beneficiary, such as a family attorney serving as the trustee for the minor child of a deceased client. If a balloon payment comes due on a commercial property owned by the irrevocable trust, the trustee certainly isn't going to be willing to guarantee some $800,000 new commercial loan.Call CRE-Finance to help you with this very complex type of financing. We have been doing it for over 20 years.
You can reach Todd Direct at 212-851-6926 or tt@cre-finance.com
In need of a commercial loan? Click here to apply
Check out our portfolio! Click here to view previous transactionsToday we're going to be speaking about commercial construction financing. There are two very important terms we'll be speaking about: loan to cost and total cost.
The total costs on a commercial construction loan include:
* land acquisition
* hard costs
* soft costs
* contingency reserve (5% or less)**
So, then what is the loan to cost? It is your total cost divided by the construction loan amount, which is then multiplied by 100. For an example, let's say a developer in Miami wants to construct an office building. He needs $3.2 million loaned. His total costs are $3.8 million. When we divide 3.2 by 3.8 and multiply it by 100, we then get a cost ratio of 84. This is a little too high for industry standards, and most commercial lenders want to see a ratio of 80% or less because the developer has 20% equity in the project. This puts some skin in the game for them.The best way to guide a developer to get to the total cost of 20% or more is to have the developer acquire the land. The developer should also have the architectural and engineering plans ready in order to get into a good equity situation. We have seen people take loans with less than 20% equity, but it's not terribly common.Here at CRE we specialize in commercial construction loans, and if you have any questions or concerns for us, please don't hesitate to contact us!
In need of a commercial loan? Click here to apply
Check out our portfolio! Click here to view previous transactionsToday, I want to briefly discuss innovative solutions outside of the bankable box. Here at CRE Finance, we examine transactions on a case-by-case basis. Our financing technicians have years of experience that allow them to structure and customize financial solutions just for you. Today, I want to share 10 special situations we come across:1. Complex company structures. As we all know in commercial real estate, company structures can be complex, from individual owners to family trusts and more, we are here to help get through those complex structures.2. Businesses outside the United States. Cheaper wages and better tax structures have taken many businesses outside of the United States; whatever it might be, CRE Finance can make things happen regardless of where you're located.
3. Concentration risk and foreign customer risk. United States real estate is red hot, especially in big cities like Manhattan and San Francisco. There is a lot of foreign currency coming through the states, but a lot of companies can't lend in them. CRE Finance can.
4. Ratio of inventory to accounts receivable are upside down. All companies have different accounts receivable -- some are profitable, some are upside down, some are seasonal, and some are year long. CRE can audit your accounts receivable and tailor lending that will help your company.
5. Specialized enterprises and criticized industries. Restaurants and bars are industries that are harder to finance, have more liability, and are somewhat criticized in the press. That doesn't stop us -- give us a call and we'll tailor a loan to your specific needs.
6. Pre-revenue businesses lack of historical performance. Some companies are startups and some entrepreneurs may have diverse business backgrounds. We would love to help people in those situations.
7. Constraints from an existing financing structure. A lot of existing structures, a lot of mortgages, that were done in the mid- to late-2000s may have various complexities that could come up. Here at CRE, we would like to help you with those.
8. Absence of a personal guarantee. Many business owners nowadays would like to have what they call a non-recourse loan, which means there is no recourse to the owner, no personal guarantee. Sometimes this is possible, but not always; we could look at the structure and advise you if we'd be able to tailor a loan to not have a personal guarantee.
9. Distressed and work out situations. Over the years, we've seen many work out situations on borrowers who have had distressed real estate. We are experts in this field.
10. When time is of the essence. In real estate and in business, when is time not of the essence? We at CRE Finance understand that your business and your real estate are important and we are here to help.Many people are unaware that they are bankable. Many people let their real estate or business go before even trying. We want to make sure that doesn't happen to you! Give us a call or shoot us an email at any time. We would love to hear from you!
In need of a commercial loan? Click here to apply
Check out our portfolio! Click here to view previous transactionsIn the past, we talked about how to package a personal construction loan, and we've recently received a bunch of questions about it that we want to answer today.One of the most important things is putting together your loan package. To do this, you need the answers to the following questions:* What was the price when they acquired the land?
* Is the land worth more now than when they acquired it?
* Do they have a performer showing what current and future income will be?
* Is it a rent scenario? Or are they going to be selling as townhomes and condos?
You must know how to put the package together correctly so it is looked at and underwritten correctly. We at CRE Finance are here to help loan brokers and mortgage brokers do just that. You need to get a non-circumvent agreement and we can give you one that you can use!We could go on forever about this topic - packaging a personal construction loan can be a big money maker for everyone involved. Give us a call or shoot us an email if you would like our help. Let's get some loans closed here in the last quarter of the year!
In need of a commercial loan? Click here to apply
Check out our portfolio! Click here to view previous transactionsOne of the biggest problems residential real estate investors face today is going out, doing all the work, and finding a great deal, but only having one to two weeks to pull the trigger and take the deal before another investor gets there. In these situations, the stumbling block is always money.
If you've ever found yourself in this situation, we have the solution for you. We can get you pre-approved for a credit line between $750,000 and $5 million dollars! The idea is to have the money readily available for you so you are ready to pull the trigger should a deal arise.
To qualify for this line of credit, it doesn't matter what your income is or how many properties you own - it's all about the property you intend to buy.
So if you need financial help in order to take advantage of a great investment opportunity, please don't hesitate to reach out to us. We would love to hear from you!
In need of a commercial loan? Click here to apply
Check out our portfolio! Click here to view previous transactionsToday we are here to talk about residential real estate for investment purchases. We have a ton of clients who watch shows like “Flip this House” or “Flip Las Vegas” who are interested in using real estate as a means to build wealth. I am an investor myself, and have bought and sold over 30 properties in a 5-year period. Nobody knows better than me the blood, sweat, and tears involved in doing this. At CRE Finance, we have developed a program that allows the residential real estate investor to purchase the property for 70-80% of loan-to-cost. It doesn’t matter how many properties you own with this program, either. Even better, at CRE Finance, we understand residential investors write off a portion of their income. We don’t care about your tax returns, we care about the income that the property and your portfolio will generate.
This is a wonderful program that I’d love to discuss further with you. If you have any questions, feel free to give me a call or send me an email! Can’t wait to hear from you soon!