banking - Understanding Large-Scale Commercial Mortgage Financing Part-02

Continuing our discussion from (part 01) of this mini series covering large-scale commercial mortgage financing (If you have not read part one you should do so). It is helpful to have a general idea how mortgage lenders view commercial income producing properties for financing. When considering projects for financing in excess of one million dollars, lenders are not so concerned with the principles initially. Rather, they are more concerned about the operating economics of the property. Lenders (mortgage brokers and mortgage bankers) will want to see a detailed rent-roll (leases), with pro forma projections, income statements and copies of income taxes for the last two years and maybe some pictures of the project. This is enough preliminary information for a lender to pre-qualify the project for further consideration. Once the determination that operating economics work, the lender will look to the quality of the tenants and the length of the leases. Mortgage banking firms like to see rent rolls having long-term leases (equal to or greater than the term of the proposed financing). Ideally, the project will have at least one or more anchor tenants (Wal-Mart, Target, Kroger, or multiple smaller strong tenants like McDonalds, Radio shack, and the like). The stronger the tenant, the longer the leases, the more likely they will be interested in the financing. The bottom line to permanent commercial mortgage financing is that grade-A projects with grade-A tenants and grade-A principals will get the most favorable rate and loan terms from life companies for properties requiring financing in excess of a million dollars. While it is possible to get life financing for projects around the million-dollar range, the truth of the matter is Life companies tend to like deals from about 2 million and up. Once the determination to pursue financing has been preliminarily made, mortgage brokers and bankers will request a host of information from the principal including resumes, financial statements, tax records, etc. If the principal's are a partnership or corporations the request for information becomes more detailed. In essence, you should be prepared to give a full accounting of your financial picture (audited by a CPA at some point along the spectrum). Formal loan applications are comprehensive legal documents covering a whole spectrum of concerns to both the borrower and lender and will require you to have legal review before acceptance and signature. The application fees you can expect to pay for the loan are typically around one percent (1%) of the amount of financing you are seeking. Example, if you want to borrow 2.5 million, you can expect to pay around $25,000.00 when you sign the application. From this application fee, an MAI appraisal will be ordered (unless it is a separate fee to the borrower). Because of the financial and legal details associated with commercial mortgage financing are complex, you are strongly urged to have both legal and financial counsel representing you. Most people who are in this league of financing are already well represented but I set forth this statement for those of you who are relatively new to the game. It's big league. This is why I cautioned people in part one of this mini series to avoid paying up-front fees to mortgage brokers. Often times these people are crooked and swindle people out of money and add another layer of fee-costs to an already expensive project. Stay tuned, I will be discussing ways to protect your self when dealing with mortgage brokers in my next article. To your success! Do you like this tip? You haven't seen anything yet! Check out our Smart Books Business products by clicking the link below. We have business kits, books and ebooks to help you get smart-fast. Check us out.... We'll save you a TON of time and money. Copyright ? 2006 James W. Hart, IV All Rights reserved Top 10 Real Estate Tips Be Smart, Visit SBS. click this link http://smart67.com SBS, Where Smart People Get Smarter Faster... Don't forget to rate this article below! By rating this article you can help Jim Hart better serve your needs for quality article content. Thank you! Note: Promotional offers within articles are subject to change without notice. Article Source:http://EzineArticles.com/?expert=Jim_Hart banking - Pros And Cons Of Cord Blood Storage Or Cord Blood Banking This new medical promise of treating diseases through stem cell cord blood banking has drawn the attention of a large mass. However, there are mixed opinions regarding umbilical stem cell cord blood. There are certain issues like ethics, racial groups, family history of genetic disorders, and others that dominate the decision for cord blood storage. Factors To Be Considered For Cord Blood Donation Recipient's compatibility - due to the immaturity of the stem cells present in cord blood, the recipient has a reduced risk of graft vs. host disease, which is a potentially serious immune response. Convenience - it is easier to regain cord blood than bone marrow. This is because it is stored cryogenically and is readily available for transplant. It is hard to find bone marrow donor and its retrieval process is intricate. Ethnic or racial groups - Race and ethics come in the way of bone marrow donation. Cord blood banking, in which cord blood is stored during childbirth, comes to the rescue at the time of need. Free services - for families who are unable to afford the cost of cord blood registry, there are certain private banking companies that have come forward to provide free services. PROS The major advantage of saving cord blood is that it is readily available at the time of saving the life of someone. The stem cells are already stored at the cord blood bank, hence, can be readily available in case the need arises for transplant. There is no pain or other harm involved in cord blood collection to either the mother or baby. It is a very simple process carried out immediately after delivery. Cord blood cells have the potential to help in the treatment of more than 50 diseases including leukemia, critical sickle cell anemia, aplastic anemia, and others. Stem cell cord blood has higher probability of becoming the perfect match for family members and relatives and has no risk of rejection by the recipient's body. CONS There are no exact estimates to confirm that an average child without any risk factor will utilize her own saved cord blood. The commercial cord-blood bank demands about $1,500 for cord blood registry, not mentioning the $100 maintenance fee every year. Besides this, you may have to shell out a few hundred dollars to obtain the cord blood collection kit, for courier charges, and for initial steps of cord blood banking. Most of the stem cell transplants are done only on kids or adolescents. Moreover, cord blood stem cells are not sufficient for an adult transplant. A large-sized person needs a larger amount of blood forming stem cells for a successful transplant. There is no concrete evidence that states that stem cells of a relative provide a greater success rate than those drawn from a stranger. Both the donors have equal success rate because the cord blood stem cells are immature, therefore, it doesn't matter if there is no perfect match for getting an unbeaten bone marrow transplant. Doctors have little experience in cord blood stem cell transplantation. Some medical experts are of the view that an ill child receiving her own cord blood stem cells may become prone to get the same disease again. However, there is no medical evidence proving it true. Cord blood storage might become a new trend very soon. However, the decision to go for cord blood banking is entirely yours. In addition, you have to decide well in advance of the due date because once you lose the precious blood, you cannot regain it. Anyways, it's good to have something to fall back upon at times of emergencies, isn't it?