Direct Funders

This is a new year and exciting things are in store for Commercial Financing Specialists who also possess the capability of pre-underwriting and pre-qualifying their deals.

A couple of major events happened this week that I want to share with you that will prove significant to you if you are considering a career as an independent financier.

First, the bankers returned to work this week with last year's books closed and ready to do business in 2006. I have spoken with at least 8+ banking sources this week. Most of them were to renew relationships established last year and the others were just sources looking to see our capability and perhaps an outlet to place good deals that don't fit the traditional banking institution's guidelines.

Secondly, there was an influx of new deals coming to fruition this week. After long negotiations with sellers looking to (really) postpone large-scale profits another year, buyers are coming forth with newly signed contracts. Amazing! Is it really because the sellers want to postpone profits or is it because of the busy-ness of the holiday season that causes people not to be able to multi-task? Traditionally, the time between Thanksgiving and New Year's is a slower time because bankers are winding down the year and buyers/sellers are wound up in shopping or entertaining. Whatever the reason, that is also a good time to clear you desk and mind of leftover tasks which should be completed before the beginning of a new year.

Anyway, this week alone, there were 5+ deals referred to me. This is a huge opportunity to impact a lot of people in a short period of time. While it is easy to become overwhelmed when this much work comes at one time, it is the more detailed, organized person that is able to work on each item as it crosses their task list.

As a per-qualifier, pre-underwriter, of commercial transactions, I have the opportunity to select the deals that I know from jump street will have the greatest opportunity of completion. When you are looking to place commercial deals, it is the job of any financing specialist to uncover all details necessary to represent this deal to the funding sources.

It takes a very detailed-oriented person to be able to handle the magnitude of what's required to represent the client to the bank and the bank to the client. The person well-suited for this type of work is one that has the capability of getting to "TRUE" and getting to "YES" so the deal can be adequately represented to the bank and the bank's capability can be relayed to the client.

It is very critical that you ascertain both sides (i.e. the bank and the client) capability to transact this deal to completion very early in the process. You don't want to work 45-60 days on a deal that doesn't have a chance in this world of ever closing. Furthermore, you need to ensure that the banking institution is capable of closing the transaction. Anyone can write anything on their website, but it is another thing for that to be actually true!

Now, this becomes the job of the pre-qualifier, pre-underwriter: You must be able to create a file that adequately describes the terms of the transaction to the smallest details. This will range from describing the terms of the contract to describing the collateral and its tenants to the property's past and future potential performance. This will also include relaying the buyer's capability to sufficiently handle the collateral, whether it includes past experience or partnerships to strengthen the transaction. No matter what it is, it must be represented to the bank to ensure their investment is a good one.

If you are interested in pursuing the business of Commercial Financing and perhaps you may be considering becoming an underwriter, feel free to pose any questions in the ASK database at http://www.directfunders.com/ask and we will respond very quickly. We have various learning programs available to you that will go a long way toward your independence.

Until the next blog,

Take care, Insiders.

To your financial success,
Cheryl Morgan Young

Visit our commercial sites at http://www.directfunders.com and http://www.directfunders.biz

Visit our residential site at http://www.hrmsproperties.com

Great News!

We recently closed a Gas Station Portfolio transaction. It consisted of two Gas Station C-Stores on a $1.8M purchase - Huck's and BP Amoco (June 2006). The owner got 87% LTV and significant amount of equity as he purchased at the right price.

We also closed on the refinance of a warehouse in the process of being occupied on a NNN lease. Property valued at $830,000 on 55% LTV (August 2006).

We are currently looking to close another Gas Station purchase - approximately $1.1M and the owner is getting 85% LTV. This should close in two weeks (October 2006).

There are other transactions that are currently in process and we are excited to service them: $4.7M (refi), $4.3M (purchase), $5M (purchase) and a few more.

We are excited about October and November!

Join the challenge with us. We enjoy closing loans!
http://www.gotocommercial.net

To your financial success,
Cheryl Morgan Young
http://www.directfunders.com

Are you fighting a losing "Commercial Financing" battle?

Does it seem as though you are beating your head against a wall trying to get your commercial deals closed on your own? Why is it that you struggle to get the financing and your clients disappear?

Would it help to know that they are shaky before you spend your hard earned time with no compensation?

Why are you having a hard time recognizing projects as doable or non-doable before you put TOO much effort into them?

Did you just get a deal of a lifetime that has been shopped all over the world and the buyers told you that they had been trying to get it financed for well over six months to one year? And . . . that you are the miracle worker, their saving grace? And . . . you believed them? And . . . you were wrong?

Did you just go to closing and didn't get paid because of some details that you overlooked? How long did you spend working on the project? Did it cause a "nightmare" in your house?

Are you paying too much attention to the "POTENTIAL" earnings for yourself and spending the dollars before they are earned and deposited into your checking account?

If any of this is "you" then you need to take a closer look at having an experienced veteran watch over your shoulder for six months while you learn to do commercial financing the right
way. Don't waste another minute fussing over your deals that don't have a chance of EVER closing. Get on to deals that will close so you can get paid.

Simplify your life today while you still can!

There are still 20, no 19 slots still available.

Learn first-hand the 'Secrets of Commercial Financing' from the Ultimate Master Money Broker himself by working with him one-on-one!!!

Durante' Parks is the Master Money Broker and he has closed in excess of $400M USD in commercial loans and property wholesaling.

REMEMBER: Details Missed = Dollars Not Earned!

Stop the madness and start closing transactions. After all, how can you be DEBT FREE if you never get to the closing table?

Sign up for 6 months of mentoring and coaching here:
http://www.directfunders.com/sixmonths

To your financial success,
Cheryl Morgan Young
http://www.directfunders.com

Over the past week, we got the opportunity to really test the theory that the property can qualify for the financing.

We had some borrowers that were interested in purchasing two gas stations with convenience stores. They had been in negotiations with the owner for some time. They even had the opportunity to work in the convenience store to learn the business for themselves.

They had contracted for one price, had gotten the price reduced to lower their cash injection into the project. We had gotten 89% LTC of the acquisition, which is really phenomenally GOOD considering there's gas in the ground!

http://www.directfunders.com/gas-stations

At the very last moment, just prior to ordering the 3rd party reports (environmental and appraisal updates), the borrowers WALKED!!! They had a remarkable deal and at the last juncture determined that they could not come up with the remaining cash needed to close the deal, although they said they could.

The BANK actually gave me permission to find other, more qualified borrowers to purchase the property and they would stand behind their financing of these two properties. They put them through the acid test and the properties in fact qualified for the financing.

So away we went. We have generated enough interest in these properties that we actually have 3 bidders looking at them. ALL of them in fact have the ability to close the transaction, so it's just a matter of whether or not they can get a firm contract with the seller.

Because the property is already qualified, just some simple underwriting is required to literally SWITCH the borrower. Then we're off and running. With the 3rd party reports being the only hold up in the process, and that will take about 3 weeks, the bank really and
truly believes that we can close this property by the end of the month given we have a firm contract by FRI.

Believe me, that is the goal now!

Anyway, for the right properties, the property itself can indeed qualify for the financing. So even if the borrower walks, and they did in this case, we can still do the deal with new borrowers.

Let's do some gas station and convenience store deals this quarter!

http://www.directfunders.com/gas-stations

To your financial success.
Cheryl Morgan Young
http://www.directfunders.com

There is an exciting call scheduled and you don't want to miss it. There you can experience the way to exit residential real estate investing into the commercial arena step-by-step.

Over $20M in deals are closing just this month. If our fees (not saying they are) 1 point, that's over $200K in revenue from just closing these loans. You do the math!

There is no reason you can't be a part of this phenomenal adventure.

Enroll at http://www.directfunders.com/rsvp

Let's get some deals done this quarter!

To your financial success.
Cheryl Morgan Young
http://www.directfunders.com

Join us in our Commercial Financing forums - Post Your Deals Here!!!
http://groups.msn.com/DirectFunders
http://finance.groups.yahoo.com/subscribe/directfunders
http://www.directfunders.com/forum

See What We Do First-Hand
http://www.directfunders.com/video.htm