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Category: Finance and Credit Current Grade: A Total Views: 263 Member Comments: 0 |
Posted on: 08/05/2011 Posted by: aallenpete Blog Points: 4 View all blogs >> |
The Problem
· May marks the 57 month of successive declines in commercial property values since 2006, one of several reasons that make an ordinary commercial refinance next to impossible.
The Answer
· One of the few options left for the commercial property owner is to modify the current commercial loan you now have.
· BTD Capital specializes in commercial loan modifications. We improve your current loan terms by negotiating a lower rate with a longer term.
What can you expect?
· You can expect a recast of the term to no less than 3 years coupled with an increase of the amortization period. Rates are modified lower to an average of 4.500%.
· Example: With a current rate of 7.500% on a typical $2 million note, the payment is reduced per month from $17,546.00 to $10,133.00. That is $7,413.00 less per month, a reduction of $88,956.00 per year. Combine with a new 5 year term and your payment total will be reduced by $444,780.00 over the 5 year period.
· Fact: Your note or ARM does not have to be close to maturity in order for us to negotiate terms superior to those you now have.
When is a loan modification appropriate?
· A loan modification is most appropriate if :
A. your year-over-year P&L shows declining income or
B. if your credit profile has deteriorated or
C. if your property has lost 35 to 45% of its value as typical of most commercial properties in the nation.
D. Your ARM is maturing.
· If your intention is to eventually refinance, these issues would make a refinance all but impossible but not affect the success of a modification.
Applying for a loan modification is simple.
· Call or e-mail for our Pre-Qualification Forms. Fill out and return to us.
· The negotiation with the lender commonly takes 15 +/- days after which we provide you with a written proposal stating the new terms. If you find the new terms to your liking, we finish the modification. If you don’t, we call it off and you owe us nothing.
Why you want to do business with BTD
· Unlike an attorney or an accountant who expects to be paid regardless of the outcome, we complete the negotiation process with the lender and you would know what the new rate and terms would be before you commit and before you would pay us anything.
· We approach lenders as a third party with experienced negotiators. If you have tried to negotiate for yourself, you realize how difficult lenders can be.
· We have what you need: a familiarity with lender procedures, proven methods and the skill to get the best terms.
· If you find the idea of a loan modification attractive and would like to know more about terms and fees, I can be reached (or please leave a complete message) at 540.465.9799 from 9AM to 5PM Monday through Friday or at aallenpete@yahoo.com.
