Metro Funding Seek to Acquire Distress Properties

Recently MFC created a new Fund for the purpose of purchasing and managing distressed properties in the United States. The fund is currently looking to buy distressed commercial properties or distressed residential complexes, including incomplete development projects, properties that require minimal renovations and non performing notes. MFC’s fund will also consider joint ventures and partnerships in the commercial real estate business.

For Help with these types of scenarios, please contact Ido Gerber 

Tel (201) 834-1317

   Distress Real Estate Acquisition Criteria:

Transaction Size	$5 Million to $40 Million
Property Types	All Commercial properties, including: Office Buildings, Medical Buildings, Retail Strip Malls, Shopping Centers, Hotels, Motels, etc. Residential complexes, including Apartment Buildings, Condo/Coop Buildings, Student Housing, etc.
Project Status	Performing Notes, Non Performing Notes, Pre Foreclosures, Foreclosed Properties, Bank Owned, Incomplete Development, Privately owned, Free & Clear or encumbered, etc.
Income	Non Income and Income Producing Properties considered
JV/Partnerships	Considered on a case by case basis

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

Metro Funding Closes a $1,650,000 Loan

PARAMUS, N.J., Feb. 24 -- Metro Funding Corp. (MFC), a private asset-based lender, headquartered in Paramus, N.J., announces the funding of a $1,650,000 loan for the refinance and construction of a 20 acre time share community and existing hotel in Branson, MO.

The borrowers, experienced developers, approached MFC when their long-time construction lender had ceased funding.  "With many lenders disappearing, businesses are forced to shut down.  However, MFC remains stable, allowing borrowers to complete their projects and keep operations moving forward,” says Manager, Guy Ferdman.  After careful underwriting, MFC was able to structure the transaction in a way that benefited all parties and allowed the borrowers to continue running their time share community project successfully. 

Metro Funding Corp., headquartered in Paramus, NJ, is a commercial real estate lending company specializing in asset-based opportunity (hard money) loans.  Metro Funding Corp. provides domestic and international loans to corporate entities.

 

CONTACT: 201-262-6360, for Metro Funding Corp. 

Web site: http://www.metrofundingcorp.com/

Metro Funding Closes a $590,000 Loan

PARAMUS, N.J., Jan. 5  -- Metro Funding Corp. (MFC), a private asset-based lender, headquartered in Paramus, N.J., announces the funding of a $590,000 loan for the acquisition and rehabilitation of a 120 room vacant hotel in Fort Wayne, IN. 

The borrower, an experienced hotel owner, approached MFC with the need to close quickly.  With the borrower’s purchase contract quickly reaching a deadline, the borrower was in need of a quick closing that a conventional bank could not offer.  "Due to current market conditions, borrowers are finding it increasingly challenging to gain financing from conventional banks.  MFC remains stable, though, which makes financing possible for borrowers who have strict time constraints,” says Senior Underwriter, Lana Nichamov.  After careful underwriting, MFC was able to structure the transaction in a way that benefited all parties and allowed the borrower to acquire the property and complete the improvements in time to re-open the hotel.

Metro Funding Corp., headquartered in Paramus, NJ, is a commercial real estate lending company specializing in asset-based opportunity (hard money) loans. Metro Funding Corp. provides loans globally to corporations unable to obtain financing from conventional sources due to the immediacy or complexity of the transactions.

Metro Funding Corp. Sponsors a Distressed Animal Shelter

Paramus, N.J., June 23, 2008 / PRNewswire/ -- Metro Funding Corp. (Metro), a commercial real estate lending company headquartered in Paramus, NJ, recently began sponsoring a distressed animal shelter. Metro became aware that the shelter, appropriately named Room for One More, was in danger of closing due to their property owner and landlord raising the shelter’s lease payments to an unreasonable amount.

Metro Funding Corp.’s decision to sponsor the shelter was based largely on the unique nature of the service that Room for One More provides. The shelter operates as a “no-kill” shelter and maintains approximately 35 to 40 ‘fighting’ dogs at a time. The shelter works intensively to rehabilitate the dogs in an effort to find them stable and permanent homes. Joshua Cederbaum, dog behaviorist for the shelter, explains, “All that most of the dogs need is positive reinforcement and consistent training to get them back on the right track.”

“Room for One More provides an important service by saving these animals and they should not be forced to shut down because the rent is being raised,” reports David Hecht of Metro. Metro Funding Corp. will be aiding the shelter in paying their lease payments until the shelter is able to raise enough funds to make a down payment to purchase the property.

If you would like to find out more about the shelter or to make a donation, please visit the shelter’s website at http://www.rfom.org/.

Metro Funding is seeking "Small Balance Loans"

Unlike many financial institutions today that are tightening their belt, Metro Funding is constantly looking for good investments where we can put our capital to work. In the interest of diversifying our loan base we have allocated $20 Million for use with “small balance” loans. This money has to be out of our hands and into projects within the next 3 months!

How small of a loan?

$2 Million and below will receive very favorable rates and terms, even on land!

What you can expect…

• 12% Interest

• As low as 2 Points on Income Producing properties

• As low as 8 points on land loans!

• No Prepayment Penalty

• All points paid from proceeds at loan closings

• Brokers points honored and protected

All other loan scenarios are also welcome.

Should you have any questions or loan scenarios that you would like to have reviewed feel free to call or email me. I also have a loan submission form that makes it quick and very convenient to submit loans, if it would be helpful to you please request it.

Metro Funding Corp. Closes $3.8 Million Development Loan

May 8 -- Metro Funding Corp. (MFC), a private asset-based commercial real estate lender announces the funding of a $3,800,000 loan to refinance and develop a Roman Bath and Spa Resort in Staten Island, NY. The borrower approached MFC after discovering that they needed funding to bridge their project to a point where a conventional lender would provide permanent financing. "This is a perfect example of how conventional banks are being inhibited by the credit crunch. Borrowers who are heavily invested in great projects are being turned away," says Senior Associate Ben Rutkevitz.

Metro Funding diligently pursued measures that created a win-win situation. The ability to cross-collateralize some of the borrower's additional assets was particularly crucial in this case. The subject collateral is a planned three story 27,760 SF commercial building. In addition to the Roman Spa, the building will include a restaurant and office space. The Spa will be complete in the summer of 2009, while the restaurant and office space are scheduled to be open by the end of 2008.