Get to the Heart of Your Deals with Details
Two documents can help nontraditional investors understand your projects and take them seriously
By Milton Franklin, president and CEO, Nationwide Business Consultants of South Florida Inc.
Commercial mortgage borrowers and brokers today are seeing traditional financing sources
dry up or disappear. Funding for new projects and the expansion of current projects,
however, is necessary for our economy to
continue to thrive. In addition, cash infusion into
commercial real estate
and businesses is needed
for us to survive the market’s downturn. As banks
reject more applicants for
financing, commercial
brokers and their clients
are increasingly turning
to nontraditional funding sources.
In fact, new nontraditional funding sources
often will accept project
scenarios for virtually all
types of business financing. Submissions can include commercial
real estate projects, venture-capital requests, bridge financing, mezzanine loans,
working capital, business acquisition, development and expansion funding, green
projects, energy projects, oil and gas, and
medical and technology projects.
Forward-thinking mortgage brokers
who understand how to approach non-
traditional funding sources are well-
positioned to replace banks as their clients’
No. 1 source of financing options for com-
mercial real estate and
business purposes.
First, though, you
must understand the art
of making your deal stand
out and of gaining these
funding sources’ immedi-
ate attention with your in-
troductory information.
There are two key
things you should do:
1. Provide detailed
information as a proj-
ect-intake form.
2. Provide an over-
view document that
summarizes the deal.
Putting these things together can help
you uncover and understand your loan
scenario’s nuances completely. They also
will allow you to present your project
much more comprehensively and provide
strong marketing impetus to your loan
presentation. Let’s take a closer look at
each of these steps.
“Commercial
brokers and
their clients are
increasingly
turning to
nontraditional
funding sources.”
Provide detailed information
A simple project-intake form can be a useful tool in gathering pertinent project information and covering several different
project components.
When putting this document together,
you must first describe the basic information about the project and its principals. Include the project name, location and type,
as well as the people involved and their
contact information. Include all relevant
parties’ addresses, Web sites, e-mail addresses, and telephone and fax numbers.
The form also should delineate the project details, covering at least the following:
■ The amount of funding requested
■ The as-is value of the land, project,
company or business
■ Any downpayment that has been paid
■ The amount of cash invested by the
principals
■ The value of any collateral that is being
considered
■ The project’s net operating income
■ The project’s projected operating in-
come upon successful funding
■ Whether the project is a purchase,
refinance or other funding type (e.g., in-
terim financing, working capital, venture
capital, etc.)
You also should include a detailed outline of the project. Specify the basic project
information, such as size, location, utilization possibilities, any special circumstances,
government participation, new technologies,
surrounding projects or related companies,
and special marketing considerations.
Further, be sure to outline how your
borrowers will use the loan proceeds.
Continued on Page 40
Milton Franklin is the president and CEO
of Nationwide Business Consultants of South
Florida Inc. His company maintains relationships
with all types of nontraditional funding sources
and offers a full range of creative-financing
products and services to commercial clients.
Nationwide also offers partnering opportunities
to commercial mortgage brokers and funders. A
graduate of Wharton Business School, Franklin
has 24 years’ experience in financial services.
Reach him at (786) 506-3578 or e-mail him
at miltonfranklin@gmail.com.
