moskowitz capital broker presentation

7/31/2019 Moskowitz Capital Broker Presentation

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Private Investing and LendingCommercial | Residential | Special Situations


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Lending Landscape

PRIVATELENDERS

Alternative MortgageProvider

BANKS

CREDIT UNIONS

Friends, family,and high net worth

Return/Cost

Risk

Banklendingshrinking

Our segmentexpanding


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About Us Eleven year track record $150,000,000 in funded mortgages

Brian Moskowitz is a past Director of IMBA

Member of various Homebuilders Association

We are lenders: Moskowitz CapitalManagement Inc. (FSCOBroker & Administrator)

Moskowitz CapitalMortgage Fund II Inc.

(Mortgage Lender)


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Why Choose Us? You deal directly with the decision makers You get an honest answer

We deliver on our commitments

We protect the referral source

Our borrowers and referral sources arehighly successful


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Our Underwriting Philosophy Common Sense Security value

Ability to repay

Flexible deal structure

Quick turnaround time

Cash Flow .Total Debt Obligation

Debt Service =


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Loan Criteria Summary Loan Amount: $250,000 to $6,000,000

Term:

6 to 36 months

Rates:

6.95% to 12.50%, subject to risk

Lender Fee:

2% to 4%

Amortization:

Often interest only

Prepayment:

Flexible

Personal guarantee:

Required in most situations

Security:

1st mortgage, 2nd mortgage on aselective basis

Timeline:

Term sheets in 24 hours uponpresentation of good information

Funded deals in two weeks


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Loan Criteria Summary Purpose: Term, construction, environmental

remediation, special situations

Property Types:

Single and multi-family residential,commercial, industrial, land

Non-traditional uses:

Assisted care, alcohol serving

establishments, auto service, drycleaners

Location:

Ontario, Nova Scotia, NewBrunswick, Newfoundland and

Saskatchewan

Loan to Value: Max:

75% on residential, 70% oncommercial, higher loan amountswith additional real estate collateral

Reporting:

NOAs and Job Letters

Rent roll for rental properties

Notice to Readers (we can

consolidate) Debt:Service Ratio:

1.1:1, flexible

Due Diligence:

Appraisal

Often Phase 1 ESA on commercialproperties


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Pricing LandscapeFees (% of loan amount) Interest Rate

Bank 0.5% 4% - 7%

Credit Union / BDC 1%-2% 5% - 10%

Moskowitz Capital 2% - 4% 6.95% - 12.50%

Other Privatesfriends and family

5%-15% 12% - 30%


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What we need to size up the loan One page summary Application (with net worth summary)

Credit Bureau

Income support

Financial statements NOA

Forecast

Rent Roll

Photos

Follow-up phone call


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Tips to submitting a deal A picture is worth a thousand words Send a complete package in one email

If it is easier for us to track, youll get a quickerresponse

Make your case with facts

Show us that the Borrower can pay

Cash flow analysis

Set realistic expectations Plan for a three way conference call


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Characteristics of a good broker Integrity Transparency

Action oriented

Working knowledge of deal

Strong communication skills

Attention to detail


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What is in it for you? 1% - 2% commission Actual Recent Examples:

$30,000 Broker Fee - $3,000,000 loan $12,000 Broker Fee - $800,000 loan

$3,250 Broker Fee - $220,000 loan

Lower E&O rates than private lenders

Repeat business, often within 12 months Adding value by placing a current clientsdifficult deal


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Whos making the money? Commercial property owners Developers

Home builders

Small Business Entrepreneurs

Target those that are action oriented


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Benefits of a Construction Mortgage

Assemble the appropriate credit mix

Finance land, materials and labour

Own the land, control the project

Shop around for deals on materials

Clear set of terms; no demand clauses Lien rights are powerful and disruptive

Build a long term relationship


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Residential Construction Spec infill construction of a semi-detached family dwelling First time builder

Loan Value: $645,000

Position: First

Location: Ottawa

LTV: 75%

Debt Service: Interest Reserve Reporting: NOAs


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Example Construction Loan Breakdown

Use of Proceeds Source of Proceeds

Land cost 341,000 Land Facility 225,000

Hard Cost 423,000 Construction Facility 400,000

Interest Cost 20,000 Interest Reserve Facility 20,000

Soft Cost 40,000 Moskowitz Capital Loan 645,000

Fee, legal, etc 26,000 Builder Equity 205,000

$850,000 $850,000

Sale Revenue: $1,150,000

Profit: $300,000Return on Equity: 146%


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Multi-Family Construction Experienced home builder needed funds quickly Spec construction

Loan Value: $1,950,000

Position: First

Location: Fredericton, NB

Debt Service: Interest Reserve

Reporting: Review Engagement


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Example Construction Loan Breakdown

Use of Proceeds Source of Proceeds

Land cost 300,000 Land Facility 200,000

Hard Cost 2,450,000 Construction Facility 1,600,000

Interest Cost 150,000 Interest Reserve Facility 150,000

Fee, legal, etc 100,000 Moskowitz Capital Loan 1,950,000

Builder Equity 1,050,000

Total $3,000,000 Total $3,000,000

Sale Revenue: $3,673,000

Profit: $673,000Return on Equity: 64%


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Renovation Home renovator and property manager seized lucrative opportunity Deal done in an afternoon


Increased from $433,000

Position: First

Location: St. Johns, NL

LTV: 100% Debt Service: 1:1 during renovations

Reporting: Rent Rolls

and Notice to Readers


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Rental Housing Frequent bank borrower needs equity for new project 72 unit Multi-family rental housing


Position: Second

Location: Moncton, NB

LTV: 64%

Debt service: 1.04:1 on subject, 4.5:1 with corporate guarantee Reporting: Rent roll and Notice to Readers


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Short-Term Stay Purchase and improvements to a 10-unit short-term stay building


Position: First

Location: Grand Falls - Windsor, NL (14,000 pop.)

LTV: 65%

Debt service: 1.04:1 on subject, 3.2:1 with personal income

Reporting: Rent roll


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Poor Financial Reporting Refinance of a commercial building, tenanted by various companies

owned by the same principal


Position: First Location: Saint John, NB

LTV: 67%

Debt service: 1.03:1 on subject, 1.22:1 with personal income Reporting: Non-consolidated Notice to Readers

Four companies


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Litigation ETO to construct Tim Hortons

Certificate of Pending Litigation registered on title

Loan Value: $1,400,000

Position: Second

Location: Toronto, ON

LTV: 70%

Debt service: As is 0.72:1, with Tim Hortons 1.78:1 Reporting: Non-consolidated Notice to Readers & Rent Roll

Three companies


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Environmental Remediation Environmental remediation of dry cleaner

Major bank would not renew


Position: First

Location: Dartmouth, NS

LTV: 47%

Debt service: 1.50:1 Reporting: Review Engagement


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Contact Us

[email protected]

Administration Lic # 11928 Brokerage Lic # 10922

1701 Hollis Street, 8th Floor

Halifax, Nova ScotiaB3J 3M8

2200 Yonge St., Suite 1002

Toronto, OntarioM4S 2C6

115 2ndAvenue North, Suite 107J

Saskatoon, SaskatchewanS7K 2B1

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