Roberto Padilla's Blog (25)

What commercial lenders and American Idol judges have in common

Fan or not we have all seen scenes from the show American Idol. Instead of aspiring signers we have commercial properties seeking funding. The judges in this case are Conventional , Bridge , and Hard money. 



One judge like Simon is cut throat and to the point he is not here to make friends with you. The other two are open minded but still require you show talent or in this case have a good project a realistic one. 



Just like in the show your deal has to shine and have that… Continue

Added by Roberto Padilla on February 2, 2011 at 4:05pm — No Comments

I started the day with a commercial structure fire. Investors and sales agents here is some food for thought

The tones went off around 4:45 this morning. On top of being involved in commercial real estate I am also a full time fireman for the City of Sacramento. The typical multiple companies being toned out signaled it was a structure fire. While in route I could see a column of smoke. Upon arrival I quickly recognized the building located on Folsom Blvd. it was the Bislas sports and bar formally know as the Library.



We had moderate smoke coming form the roof and to my surprise the owner… Continue

Added by Roberto Padilla on October 13, 2010 at 9:53am — No Comments

The dirt is turning in Roseville. Could it signal a recovery for commercial real estate.

At the South East corner of Pleasant Grove and Fiddyment in Roseville Ca.the dirt started turning last week. This parcel sits on one of the most busy intersections of what is known as West Park. While commercial real estate is still facing major price adjustments the sign of life could signal what could be a recovery.



The site is sure to lure business looking for lower and or better located retail space. While the economy is still getting battered, overall confidence in very… Continue

Added by Roberto Padilla on October 11, 2010 at 6:20pm — No Comments

iphone,blackberry and Droid's. Talk about real estate networking on steroids.

Real estate is a simple game of numbers. The more you connect with the better odds you have of growing your real estate career. Before you would have to go to a mixer and hope to meet a handful of people out of dozens. On top of it all this would only take place a couple times a month. Now by the end of the day you can connect with dozens of useful contacts simply by using the new way of communicating.



I feel safe to say that more people check their facebook more than they do their… Continue

Added by Roberto Padilla on October 9, 2010 at 9:48pm — 1 Comment

What is a commercial bridge loan? And is it right for you.

A commercial bridge loan is often confused with a hard money or equity loan. A bring loan is designed to gap the time needed to stabilize a commercial property with long term financing or buy some time needed form the property owner.



Bridge lending like most loans out there can be all over the place as it relates to rates and terms but for the most part are much cheaper than hard money or equity loans. The terms very from 6 months to 36 months with rates usually starting somewhere… Continue

Added by Roberto Padilla on September 19, 2010 at 11:22am — No Comments

Gordon Gekko is back. And the time could not be better.

Ah our good old friend Gordon Gekko is back and with him comes an opportunity to take some notes. Gordon Gekko is the ultimate wall street bad guy willing to do anything to get what he wants. His style consist on finding young talent and milking them for all they got while they also do the dirty work. The timing could not be better as we are in a major recession and like always this brings out opportunity to do things that could get you in trouble.



Commercial real estate has very… Continue

Added by Roberto Padilla on September 15, 2010 at 11:16am — No Comments

Negotiate your commercial loans like a 6 year old.

Nothing will kill a negotiation like not having your ducks lined up. Getting a commercial loan is a negotiation between you and the lender. My six year old sun like many out there seems to be a master negotiator. Some how some way he always seems to come on top of things, don't take me wrong he loses many negotiations especially when the answer is a simple no. But when it comes to getting better terms he is darn good. 5 more minutes of TV turns into 10 or a special treat gets… Continue

Added by Roberto Padilla on July 22, 2010 at 4:18pm — No Comments

Running 5 miles in 105 degree weather is what it takes to make it in this market

I knew it was going to be one of the hardest things I have done in a while. It was 105 degrees that day and the goal was to run 5 miles in under an hour. I drank water all day and hydrated very well, by the time 4:30pm came around I was ready not only physical but also mentally. I told my wife the route I would be running and asked her that if I was not back in an hour to come looking for me.



This action had a good reason and that is I am not only involved in commercial real estate… Continue

Added by Roberto Padilla on July 20, 2010 at 8:46pm — No Comments

Two must do things if looking for multifamily property.

The last thing you want to do is waste time especially in a market like this. Here are two simple things to help you locate and purchase that perfect multifamily property regardless of size and price.



1- Understand your current financial ability. How much money do you have to invest this is not about LTV , rates or money you can raise. Its about your cold hard cash. While there are multifamily programs that will go as high 85% the majority of lenders are financing around… Continue

Added by Roberto Padilla on July 19, 2010 at 3:19pm — No Comments

Choosing the right loan program. Commercial real estate financing information.

Understanding your options will allow you to make the right decision. The most common forms of commercial loan programs are conventional, bridge and private money. Each group has it's own subcategories. Focusing on some simple points will provide information about what you need Vs what might be a product someone is trying to sell you.







Conventional: Usually associated with longer more fixed terms. Within this category you can expect higher guidelines in return for those… Continue

Added by Roberto Padilla on May 19, 2010 at 3:47pm — 4 Comments

A sure way to help you find distressed commercial real estate.

To take advantage of the growing number of distressed real estate hitting the market there is one thing you must think of and that is who you network with. This will be true for both investors and professionals in commercial real estate. Your ability to gain access to the inventory is going to be key.


This market is in a cycle unlike anything that has been seen in several decades if not longer. Banks are really trying to use experienced and well versed brokers to help them…
Continue

Added by Roberto Padilla on May 12, 2010 at 7:06pm — No Comments

To get the best rate you must consider the 3 C's. Commercial real estate information

While many banks are still resistant to lending on commercial real estate, there are other options that allow to not only get the funding you need but offer bank like rates and terms. See were you come in on the 3 C's.



Cash flow: While most banks require high DSCR if your property has 1.25 or better you are doing great. This means that the property provides enough income to pay for the service of the note with room to spare. This also takes some financial burden off the… Continue

Added by Roberto Padilla on May 8, 2010 at 4:28pm — No Comments

Commercial bridge loans come in several forms. Understanding them could save you money.

A conventional type bridge loan will usually have terms of 18-36. First position only. Rates get very aggressive at this level as they tend to be fixed. Allow for most credit levels.



Must also meet 2 of the following 3



Loan to value less than 75% as is value

Property cash flows DSCR of 1.25 or higher

Principal has 3 months reserves or collateral.



Hard money bridge loans tend to be true short term loans of 6-18 months. First position. Credit of the… Continue

Added by Roberto Padilla on March 2, 2010 at 9:30am — No Comments

BPO vs Appraised value time to be realistic

This market is not only hammering commercial real estate values but it is allowing for a huge opportunity for well established and funded developers to purchase things at fire sale prices.



One of the biggest hurdles is the notion that BPO or broker price opinion is an accurate way to value the property.



While some of the larger commercial brokers have some very well documented ways of assessing a price many still use an opinion based on what they feel they can try to sell… Continue

Added by Roberto Padilla on October 12, 2009 at 7:18am — No Comments

Going the extra mile pays big in commercial real estate

How many times have you gone up to someone and requested a service but for some reason or an other they could not give it to you. For example they don't work on brakes they only do oil changes.



You are left there scratching your head saying now what. Now how hard do you think it was for that business to say(listen go two blocks down ask for bob or jenny tell them I sent you they will take care of you).



This does not happen often because what is the bennefit to their… Continue

Added by Roberto Padilla on October 7, 2009 at 6:48am — No Comments

Quick review on how to write an executive summary for commercial financing

In order to give the lender as complete an understanding of your project as possible, you need a detailed executive summary which would explain;



1. The project itself.



2. The amount of cash the borrowers have already invested in purchase, improvements, construction, infrastructure (if any) etc. It is of great importance that the borrowers have equity committed to the project.



3. Explanation of the loan amount required and its distribution.



4.… Continue

Added by Roberto Padilla on October 6, 2009 at 7:08am — No Comments

Commercial mortgage brokers generate better leads by being more targeted.

What constitutes as a valid lead for commercial financing is a matter of opinion. Some business plans are designed to generate large numbers without regard to a specific need or vague loan parameters. This shotgun approach can result in large amounts of time wasted sifting through to find that one viable request.



To others a lead is a filled out form. Even further for some, it is not lead until the credit has been pulled.

I feel it’s safe to say that most will consider a form… Continue

Added by Roberto Padilla on October 5, 2009 at 7:50pm — No Comments

I said it once I'll say it again. PROVIDE DEFENSIBLE SPACE OR ELSE

This seems to be a topic that most take with a light hand. Defensible space is everything when dealing with wild fires. As a 14 year veteran of the fire service here in California what happened yesterday in Auburn Ca. and parts of Southern Ca. is something that is going to get worse.



Over 60 homes and 10 commercial buildings were destroyed in about 3 hrs. These fires are almost impossible to stop. While wild land fires are nothing new, the amount of construction over the last 5 years… Continue

Added by Roberto Padilla on August 31, 2009 at 7:00pm — No Comments

Is private financing for you.

Trying to figure out if private commercial real estate financing is for you can be tricky. The first thing is to answer some simple questions.



1- Is this a short term or long term loan. Private money is designed to get you thru 6-24 months.



2- Do you have bad credit. Private lenders may go into the 600's usually nothing less.



3- Does you property have equity if refinancing or a substantial down payment if purchasing. Private lenders will usually not go above… Continue

Added by Roberto Padilla on August 26, 2009 at 4:44pm — No Comments

How to write an executive summary for commercial financing

In order to give the lender as complete an understanding of your project as possible, you need a detailed executive summary which would explain;



1. The project itself.



2. The amount of cash the borrowers have already invested in purchase, improvements, construction, infrastructure (if any) etc. It is of great importance that the borrowers have equity committed to the project.



3. Explanation of the loan amount required and its distribution.



4.… Continue

Added by Roberto Padilla on August 24, 2009 at 7:15pm — No Comments

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