leveraged alternative capital assets master04232011

We Help Banks and Business Owners ….

Make The Right Connections

Leveraged Alternative

Capital Assets

Leveraged Alternative Capital Assets Locates Financing for a

Wide-Range of Projects and Business Needs, Primarily from

Private Equity Sources, as well as Traditional Sources.

Clyde Leverett – Principal

Why Is Alternative Financing Needed?


Capital Assets

Commercial Loans you Expected to get from your Local Bank

in Many Cases are No Longer There due to:

1) Banks Being Nervous About An Uncertain Economic Future

2) Significant New FDIC Restrictions

Bank Loan Capacity - Example:• Banks can only lend money based on capital at hand

• Bank has a 5% Capital Requirement

• Capital Base of Equity of $100M

• Maximum Loan Capacity

$100M divided by .05% = $2B * Capital Base of Equity Divided By Capital Requirement

FDIC Bank Loan Restrictions

Capital Bank Investmentx Capital Requirement

= Bank Loan Making Capacity

•3 years ago FDIC Capital Requirements for Mid Sized Banks = 3-4%

• Real Estate Values Fell – FDIC Capital Requirements = 5-12%

• Result = Significant Restriction on Bank Loan Capacity

• Same Bank as in Previous Example has $100M in Capital

• $100M Capital x 12% Requirement = $833M Loan Capacity

Originations by Commercial Banks

are Declining Year over Year and here’s why ….


Capital Assets

1. Educating and Assisting Businesses

• Who and What Is Getting Funded

2. Locating Alternative Funding for Businesses

• Who Can Not Obtain Funding Due to

Underwater and Underperforming Commercial Assets

What Does All This Mean

“Capital Is Available” – “But Many Will Still Not Qualify”

We Can Potentially Help Many Businesses


Capital Assets

Secrets to Quickly & Simply Secure Business Funding

1) Knowing your Potential for a Loan “Up Front”

2) Knowing What Programs & Loans Are Available To You

3) Knowing What Is Needed In A Professional Loan Request

4) Knowing Who Has Money & Who is Lending!

Our Mission is to Find the Right Funding at the Right Price from the Right

Lender as Quickly and Simply as Possible for our Borrower/Client. The Phrase

"TIME IS MONEY" is Most Applicable in the Loan Application Process.


Capital Assets

We Make The Right Connections

We Locate Financing for a Wide-Range of Projects and

Business Needs, Primarily from Private Equity.


Capital Assets

Service Offering

Multi-Family:

1) Refinance

2) Cash Buyers

Small Balance

Business Loans /

Credit Lines

Commercial Loan

Modification

Program

Credit Card

Receivable

Financing

Bank Turndown

Program

Discount Note

Purchase Program

Medical Practice

Loans

Bridge Funding /

Hard Money

Christian Church Alternative Energy Hotel / Motel Retail Projects

SBA Refinance of a Vending Business

Principal Reduction & Conversion – Hotel

New Financing for a Sports Complex

$350,000 Purchase Order

Converted Ground Fields to Mini Storage Units

Recent Funding Examples

“Cash Purchase” – Apartment Complex

Purchase of 10 Multifamily Properties / $9M Multifamily Refinance


Capital Assets

Bank Turn Downs Could Turn Into:

a) Loans

b) Discounted Note Workout

c) Loan Modification

d) Short Sale

Converting

“Turn Downs” Into “New Opportunities”


Capital Assets

* Retail Center Owners Who Are Upside Down

* Hotel / Motel Owners

* Multifamily Property Owners

* Business Owners Who Have Business Loans

Secured By Real Estate - with Cash Flow Problems

Examples of Current “Growing Trend” Opportunities

* Almost any Business Owner with 5+ Employees

* Multifamily Owners Who Are Upside Down


Capital Assets

* What Documents Are Needed & What Fees To Expect

* Timeframe for the Process & What Pitfalls To Expect

* Potential Lenders Interested In Your Request

* Cash Flow Tests That Underwriters Perform

To See If The Subject Property Can Satisfy The Loan

Our Unique “Save Time & Money” Approach

To Effectively Matching Borrowers & Lenders

Let’s You Know On Day 1 of the Loan Request Process:


Capital Assets

5 Components Considered for

Providing Businesses with Capital

to Grow Their Revenue


Capital Assets

1) Type of Business

2) Geographic Location of Business

3) Economics of Business

4) Collateral for Loan

5) Financial Strength / Creditworthiness of Sponsor

Type of Business


Capital Assets

There are Many Different Types of Businesses, and Will be

Assessed Differently. There is Not an Exact Science.

Example: A Multifamily Property Can Be Potentially Financed

with the Following Programs: Fannie Mae, Freddie Mac, Bank

Financing, HUD/FHA, Life Insurance, Hard Money, Private

Money, and more….

Location, Location, Location


Capital Assets

Location

Geography Has A Lot To Do With Loan Placement

Example:

* Many Lenders Only Will Lend In Certain States, Some Only in

Major Metro Areas, Some Only Rural, etc….

Business Economics


Capital Assets

1) Is Business Increasing or Decreasing Over Last 3 Years? or…

2) Is Rental Income Increasing or Decreasing?

3) How Is Business Credit?

4) Have Loan Payments Been Made On Time?

5) What Is The Net Operating Income of the Business?

What Will Collateralize The Loan?


Capital Assets

If the Business Owns Commercial Property, the Loan Will be

Collateralized by the Property and the 2 Evaluation Factors will be:

1) Can the Income from the Business Pay for All the Expenses

Including the Mortgage Payments, with a Little to Spare and …

2) If There is a Default on the Loan, What is the Market Value of

the Property so the Lender can Recoup the Loan.

While Still Not the Focus of Commercial, the Sponsor or Loan

Guarantor is Becoming a More Important Factor and Will be a

Consideration in Lending Decision.

*****

Credit Scores of 680+ and Some Financial Strength

is a General Rule of thumb.

Sponsor Financial / Credit Strength


Capital Assets

We’ll Put Together a Very Professional Loan Request Package.

Such Professionalism Does Much to Enhance the Borrower's

Chances for Success in the Loan Process.

*****

Our Systematic Approach Will Save a Significant Amount of

Time, and in the Financial World "TIME IS MONEY“.

Maximizing the Potential for Success

of the Borrower’s Loan Request


Capital Assets

We also Help Banks Maintain Relationships with

their Clients by Helping them Get Funding for

Projects that they are Unable to Fund

Through their Traditional Channels.


Capital Assets

Trusted Business Partner To BanksAs Well As Borrowers

* More Stringent FDIC Requirements

* Lenders Tightening Underwriting Requirements

* REOs Too Large / Will Take Time To Digest

* Banks and Lenders Don’t Want to Own Real Estate

* Yet Banks Need To Retain Assets & Client Deposits

We Provide a Unique Alternative Funding Resource

for the Unique Loan Underwriting Guidelines

Restricting Bank Loans Today


Capital Assets

Borrowers Win: Receive Needed Business Capital

Banks Win:

1) Retain Assets and Deposit Base

2) Maintain Strong Customer Relationships

We Win: More Raving Fans

Our Unique Leveraged Alternative Capital Assets

Program Provides A Win-Win-Win Solution.


Capital Assets

How To Get Started

• Submit A Quick and Easy Online Request

• Mail or Fax Qualification Analysis Documents

• If You Are A Local Business - We’ll Meet With You

• Call Us For A Free Qualification Analysis Consultation

Leveraged Alternative Capital Assets

Clyde Leverett – Principal

302-223-6296

Whether You Are A Borrower or a LenderWith a Loan “Turn Down”

Give Us A Call For A Free Consultation


Capital Assets

[email protected]

www.leveragedalternativecapitalassets.com

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