What Brokers Need to Know about Closing Loans with Metro Funding?

I know that during this economic downturn it has become increasingly difficult for you, I and many others to make a decent living.  I have been hearing many horror stories of brokers posing as lenders, borrowers are being taken advantage of, and lenders forgot that they are dealing with another human being on the other side.  In order to ensure that you are working with a legitimate lender you can always have the borrower’s attorney call the lender and ask them to provide you with closing statements.  If the lender’s name is not on that closing statement they are probably not a legitimate lending source.  We are more than willing to provide such documentation to make your clients comfortable that we are a REAL lending source and we have the track record to prove it!

You may not be aware that Metro Funding is still actively lending and pursuing loans.   We currently have $20 Million ready to move today!  We just need to find the deals that work for us and the borrower.  The deal should make sense for all parties involved. 

Here is criterion and some tips that may help you as a broker find deals that work with Metro in today’s market place:

 

What we are looking for is…

·         Income producing properties (Office Buildings, Shopping Plazas, Apartment Buildings, Etc.)

·         Properties with complete structures or near completion (This could include light rehab)

·         Loan Sizes that range from $1 Million to $5 Million (per transaction)

Other Tips…

·         Borrowers that are well invested in the property and will not walk away from the deal

·         For acquisitions the borrower must have money to put into a deal*

·         Hard Money Lenders are conservative by nature; we base our property evaluation on a “quick sale approach” or a 3 to 6 month sale to a single cash buyer in bulk.  If there are no recent comps in the area of the property to validate the property value you can assume it has decreased because of today’s market conditions.

·         Exit strategy. Exit Strategy. Exit Strategy.  I can’t stress this enough!  As a lender our main concern is how we will get paid back.  If we can’t see a way out, we will not do the deal!

·         We are still considering land loans, but exit strategies are fleeting with these deals.  I’m sure you’ve realized that finding a construction lender or a temp-to-perm loan is very difficult.  Unless the borrower has additional collateral to pledge or a clear cut exit strategy we will probably not take the risk of lending against land today.  But there are some exceptions.

*Seller seconds just show that the seller can’t sell his property for the value he thinks it’s worth in this market

 

I do not want to discourage you from sending me any loan scenario!  We are private money and we can get creative in order to fund.  So the more you send, the more likely we are to find the right deal!  I hope the information I provided above helps you hunt for the right projects.  In my opinion the broker, borrower, lender relationship is the best in the business world.  The deal has to close for all 3 parties to benefit and no one gets paid unless a closing occurs! I look forward to doing business with you and showing you that even in this market there is money to be made.  Don’t hesitate to send me deals or give me a call!  

Guy Ferdman /  Manager

One Kalisa Way, Suite 310

Paramus, NJ 07652

Tel: (201) 262-6360

Dir:  (201) 834-1311

Fax: (201) 262-6910

www.metrofundingcorp.com

guy@metrofundingcorp.com