Beware the Ides of March … I think that’s what an oracle said to Julius Caesar, right? Well, happy Ides of March to you! The first quarter is almost done and we’re picking up steam heading into the last year of the first decade of the 21st century. If that doesn’t give your brain a twist, nothing will. College basketball is in full swing and all I can think about is the next Grand Slam in tennis. How’s that for oblivious?

I’ve decided to wax eloquent on the topic of Bridge Loans this week. Now that we have several in underwriting I can see that this is where the focus of lending will be for the majority of this year. Yes, we’re still doing SBA 504s and USDA loans, but the real activity is going to be in completing discounted payoffs, along with REO and Note portfolio acquisitions. As America de-leverages, bridge money will be there to fund the purchases … assuming we don’t run out of energy to keep the lights on now that we can’t drill for oil, natural gas, or coal in our own country! Your politicians at work again (I can’t WAIT for November).

“Letting your customers set your standards is a dangerous game, because the race to the bottom is pretty easy to win. Setting your own standards–and living up to them–is a better way to profit. Not to mention a better way to make your day worth all the effort you put into it.”
– Seth Godin

Here are a couple of videos for you that I couldn’t resist sharing. The next time you think you have to pay too much in taxes, just quote the Senate Majority leader, Harry Reid: Taxes are Voluntary???. And here’s another one that’s a superb take-off of the “Mighty Casey At Bat:” The Mighty Barak At Bat. Enjoy, but more importantly, call your Congressmen and Senators. Time to stop the trainwreck.

Commercial Financing Tip

Quick Tips On Bridge Loan Requests: Now that hedge funds are the lender of choice for bridge loans, fund managers are becoming overwhelmed with calls to finance all kinds of transactions. Do yourself and your bridge lender a favor and follow these simple steps to get your financing request to the top of the pile:

1. Prepare for Your Presentation Properly. Speak to the ultimate borrower and prepare him for the real cost of a bridge loan (think 10% to 15%, multiple points, 1 to 5 year term).
2. Know Your File. You’re going to get hit with a ton of questions, so be sure you know about the property, the location, the borrower’s experience & financial condition, and most importantly, the exit for the bridge lender.
3. Present the Good and the Bad. Hiding negative issues will only hurt you. You’ll get a turn-down late in the game and you’ll lose credibility with the lender. Better to get an early pass, although you may find that the lender has a solution you haven’t thought of.
4. Organize Your Documents. Be sure to have a complete Executive Summary, PFS on the borrower, a Credit Report, Pictures of the property & surroundings, at least 2 years of borrower and company Tax Returns, a Rent Roll or Lease Summary, and a complete year and year to date Income and Expense Statement on the property.
5. Don’t Blow the Submission. Use a complete sentence in your email’s subject line, name your files consistently and completely to help the underwriter find what he’s looking for, keep your attachment sizes low (use the “Optimize” feature in Adobe Acrobat), and follow up with a phone call to make sure everything got there.
6. Only Submit “Good” Deals. These are financing prospects with good cash flow, a reasonable exit strategy, and experienced borrowers with good financials. Also make sure that the lender isn’t asking for Up Font Fees (you’ll want to run from these guys). Remember to investigate your lender as thoroughly as you investigate your loans.

Following these simple steps should give you far more success in requesting bridge financing rather than just “winging it.” Be proactive and thorough in today’s lending climate.

“Success in business requires training and discipline and hard work. But if you’re not frightened by these things, the opportunities are just as great today as they ever were.”
– David Rockefeller