October 2019
by Commercial Mortgage Broker Financial Compound
 
     Current Interest Rates
Our current offering for lenders
       
Lit Money
Attention single family spec developers, both ground up construction and fix 'n' flip.  A unique program has emerged funding up to 80% of all in cost (lot/home price, construction/renovation cost, soft costs, interest carry, and closing costs).  Interest rate is prime plus 1.25% (that's a rate of 6.25% today), 2 year term, recourse, 1% lender fee.  This is insitutional pricing for what up to now has been hard money at higher rates and lower LTC.  Underwriting criteria:  (1) experienced developer, (2) net worth double the loan amount, (3) liquidity of 10% of the loan amount.  Criteria may be mitigated with superlative factors.  Geography:  selected states.  Loans up to $25 million.  Inquire at 310-260-5900 x103 or hot money    

 

Some of Financial Compound's recent transactions

$16.1 million southern CA rent control apartments..  These are acquire & reposition bridge loans for rent control apartments.  Typically bought with $700 rents and increasing to $1,800 - $2.200 upon renovation after tenants vacate.  Financial Compound was charged with finding a lender to make a 70% LTC loan.  Most lenders in this space require a minimum 1.0 debt coverage ratio on the existing NOI.  That typically translates to a 45% LTC loan on these types of transactions.  Financial Compound combed the market for this repeat client and curated a few institutional lenders happy to roll with us at 70% LTC, 4.25%, 5 year term, interest only, 1/2% lender fee, no prepayment penalty.  5 business day close (our quickest ever!).

$2.1 million Office Building financing, all MTM tenants, minimal DCR.Borrower's business plan was to vacate all tenants, which were at below market rents, and replace with a single tenant long-term NNN lease.  So this deal offered limited cashflow and just a break even debt coverage ratio.  Financial Compound found hard money allowing the borrower to acquire the property as 100% owner with no partners.  Rate 9.5%, 3 years, interest-only, non-recourse, no prepayment penalty 2% lender fee, 13 day close.

$6.1 million in car wash construction takeout loans, Southern CA.  Hard money bride loan until the properties for permanent loans.  65% of cost, 9.00% rate, 3 year term, 2% lender fee.  Non-recourse.  These are ground-up, highly stylized and unique facilities on outparcels in larger centers, on signalized high traffic intersections.  This operator accepts only credit card.  Approximately 40% of the revenue stream is from monthly pre-paid accounts allowing for more predictable underwriting.


Can Trump trump the Trade Balance?
Ramifications of trade with China are already being felt domestically. Is POTUS too late to be the hero?  Stock market analysts seem to think Trump still has time to sprinkle some red, white, and blue pixie dust to fix the problem.  At the time of this writing, both stocks and bonds rallied, so people are optimistic.  With the trade balance in ceasefire mode all parties can take a respite to cool off.  If a tweet from POTUS on twitter can affect the markets, Financial Compound thinks Trump could pull something out of his sleeve and get us out of this mess.      

Capital markets innovator Financial Compound has structured and closed more than $4.4 billion in financing transactions

We also specializes in workouts, modifications, and distressed refinancings, having completed more than $300 million of successful modifications in a distressed context.  We do not charge up-front fees, and receive compensation only upon the closing of a restructure.  This pricing model is an outgrowth of our company philosophy and unique in the industry.  Our long history and relationships with the capital providers, coupled with our in-depth market knowledge and proven methodology have helped us complete restructurings efficiently with senior level professionals at the lending and servicing institutions.

 

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1305 Casiano Road  | Los Angeles | California | 90049 | 310.260.5900 x103