How Prepared Are You?

Current Conditions in the Marketplace

How prepared are you to meet these lending parameters?

Trusts, Foundations, and Hedge Funds

If you have been reading the newspapers, checking your computer news, or watching TV, you are very much aware of the current conditions in the financial marketplace. What we are experiencing is a total lack of interest in financing any type of commercial mortgage product on the part of local, regional and nationwide lenders. Their excuses are many and their interest few and far between.

We are going through challenging times and the typical lender as we know them today is almost impossible to find. We at AMG Commercial Mortgage Group did see this coming, (not that we are the great soothsayers from the Far East) toward the end of 2007. We felt that when the bubble does burst (and it did) we would have to seek lenders that would consider financing programs “outside the box”. We refer to them as “Non-Traditional lending sources”, and they are made up of Trusts, Foundations, and Hedge Funds.

Initial Due Diligence and Basic Underwriting

Their loan to value (LTV) and terms are much higher, they will consider transactions both on a domestic as well as on an international basis, however, they prefer higher loan requests and require from the client, a joint venture (JV) partnership. Therefore, our firm is considering all loan requests for initial due diligence and basic underwriting. If it fits the perimeters of the Trust, we can move forward to the application stage. NO upfront lender fees are required, underwriting is streamlined, and in most cases, all exhibits and third party reports are electronically forwarded to the lenders underwriting staff. If all parties cooperate, the transaction can be completed in a 90 day period of time.

Before you submit your loan request to our firm or your broker of record, are you able to supply us with:

  • A feasibility/viability study
  • A professionally detailed business plan
  • Current equity injection
  • Updated financial statements
  • Cash flow analysis for up to a 10 year term
  • Resumes of the principals and the organization
  • Source and use of funds

Meeting and Exhibits

Once an initial interest is created and the Trust offers you the invitation to submit, a conference call is completed with all parties, followed up with a face to face meeting and collection of exhibits to complete the due diligence/underwriting of the Trust. At that stage, the client is totally in the direct hands of the Trust Underwriter. Funding usually occurs within 30 days following final commitment. How prepared are you to meet these lending parameters?

Outlooks #55 - Editor's Article

"Clients outside the US experienced limited mortgage funds, excessively high interest rates, and in many cases, difficult underwriting requirements that became impossible to develop a successful venture. AMG Commercial elected to accept those challenges. “So why hasn’t it happened”?...."

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The AMG Commercial Mortgage Group services their clients by obtaining the best financing available for the specific product, as well as advising on the sale or the purchase of commercial real estate, anywhere in the United States.

If you have any questions, please feel free to contact us. Accolades from our current and past clients are available to any individual upon request.

Contact Us Today!

"As a member of the Association of Mortgage Brokers/Professionals, we have demonstrated a firm commitment to remaining an informed professional in the rapidly changing world of real estate finance. This dedication, which includes adherence to a precise Code of Ethics and Standards of Professional Practice, results in our customer being represented by honest and sincere representatives."