Real Estate Capital

The market is changing fast. The dollar is loosing its value daily to other world currencies, and oil and gold, said to be undervalued greatly, is on the rise to record highs. These conditions in the marketplace and world economy, along with a contraction of available credit coupled with median household income remaining stagnant, create a looming recession for Americans.

Getting access to capital for real estate becomes difficult. and for this purpose developers and real estate investors have to be willing to adapt and comply. BalboaMortgage.com will help you stay in the loop connecting you with large investment banks, hedge funds managers, institutional banks, and private money.

We specialize in providing the following types of real estate transactions:

• Standing Inventory & REO Pools
• Debt & Equity
• A&D and Construction
• Bridge and Mezzanine (short term)
• Hard Money (short term: 1-36 months)
• Discounted and Bulk Investor Sales

Standing Inventory & REO Pools

We are looking for standing inventory and REO Pools for transactions up to $20M or greater ($100M). We will consider both residential and commercial inventory as well as non performing notes. Raw land with no more than entitlement (zoning) completed will generally not be considered. Our buyers will consider standing inventory that have at least 30-50% equity off of today's market based on a current appraisal or BPO relevant to the property. Whether the property is dilapidated, negative cash flowing, or in the middle of development, your inventory will be considered if it fits the other general guidelines.

Depending on the accessibility of the property for due diligence these transations can be closed in a matter of days to a few weeks with cash purchases.

Small Balance Commercial (up to $1.5M)

Up to 97% debt financing for small balance commercial properties. Documentation types range from full doc to stated income stated assets, DSCR or DTI income underwriting.

Large Balance Commercial (income producing real estate)

Up to 90% debt and/or equity financing for all commercial income producing (existing) real estate. Transactions range from $1.5M to greater than $100M.

Commercial/Residential Bulk Sales

If you have found that your project is in trouble, a situation that is quickly turning bad to worse, you are not alone. There are many in your predicament. Balboa Mortgage has alliances with investors that are looking to acquire in bulk commercial under performing real estate due to a poor market, cash flow, and other extenuating circumstances.

Additionally investors are looking to acquire at discount residentially zoned/planned improved land (not raw unimproved). Improved land is physically improved land in addition to completed zoning entitlement. Transactions range anywhere from $100,000 up to $20M or more.

Commercial A&D and Construction

Up to 90% LTV for A&D and 80% LTC for construction financing. Usually 100-300 basis points above PRIME, Treasury, or LIBOR. Up to $100M. One of our investment banks just funded a hotel condo-tel for over $220M in Panama for a well known real estate tycoon.

Residential A&D and Construction

Up to 70-85% Debt and/or Equity for A&D and Construction. Market capital for these projects are shrinking monthly. The more invested into a project the more likely it will get funded. Expect at least 300 basis points above PRIME, Treasury, or LIBOR. For borrowers seeking maximum financing expect the strong possibility only hard money sources (12-18%) will fund these types in today's market.

Reality Check

"Skin into the game" always takes a major role in underwriting, along with net worth assets, liquid cash available, and cash (not debt) projected to be invested into the project. As a general rule of thumb underwriters for most capital sources seek the guarantor/principle to have 20% cash investment into any large project (over $1.5M) and want to see strong net worth and sustainable incomes to see through the project's completion.

Likewise trying to get into a market that has never been accomplished before weakens ones position for financing. If you have never done commercial before, only spec homes, or have never done a development or hotel in Mexico, your ability to become seriously considered is further weakened. However, if you are in a position right now where you are serious and have done your due diligence on a great opportunity, but lack the capital, experience, or otherwise, there is always the possibility we can provide the relationships with those that do (joint venture and equity). You wont profit as much for this particular project, but you will gain insight, experience, connections, as well as get the project completed that you would never have been accountable to before.

Points/Fees

Points per project vary due to size, difficulty, and placement, but the borrower/principle should be willing to pay a minimum of 1/2 to 1 point to Balboa Mortgage as intermediary. Some capital sources may charge an additional up front fee, which usually can not be determined until after application.

Initial Documents Required

Most underwriters want to see the same things, but each want to see it perhaps in a different order. Not all want to see "everything you got" up front.

Small Balance Loans

• Summary of Proposal (aka Executive Summary of Business Plan)
• 1003 Application
• Credit Report
• Pictures of property
• Appraisal (if in possession of one)
• Financials (personal and business) (when full documentation)
• Tax Returns last year and previous (personal and business) (when full documentation)
• Financial Statements as identified on 1003
• Property Income Statements
• Rent Roll (if applicable)

Commercial and Residential A&D and Construction and Refinances

• Summary of Proposal (aka Executive Summary of Business Plan)
• Exit Strategy
• Pre Sales (where applicable)
• Pro Forma
• Use of Funds
• Break Down of Funds into Project to-date
• 1003 Application
• Credit Report(s)
• Pictures of property
• Appraisal (if in possession of one)
• Financials (personal and business)
• Tax Returns-most recent (personal and business)
• Financial Statements as identified on 1003