Repositioning over-leveraged and distressed commercial properties.
In our 17 years experience in repositioning properties, we have leaned many things. We must stay ahead of the curve in real estate cycles, economic cycles, and funding resources. Since the downturn of 2006/2007, funding through traditional local commercial banks has become increasingly more difficult. Over the past 3 years we’ve acquired over 1,100 units in Tennessee and California by discovering and developing alternative financing relationships, and by securing cash-flowing properties with over 50% equity after stabilization.
Today, because the customary bank financing is very difficult to achieve, some commercial property owners with good performing properties are discovering that their current bank won’t or can’t renew their commercial loan. This is a dilemma than most owners haven’t had to deal with in the past 40 years.
Why? The government’s bailouts and quantitative easing strategies have effectively helped only the big banks, and not the small community banks who have historically made most of the local commercial real estate loans for owners. Federal regulators are now pressuring them to raise capital to meet their increased reserve requirements. This is why up to 80% of commercial property owners are not able to get their loans renewed. The small local commercial banks need to raise their cash reserves or the regulators will shut them down. Their only alternative is to not renew your loan and require you to find other financing.
In these challenging times RenuVest is dedicated to working with property owners who find themselves stuck with these troubled assets. Our team has 4 ways to help commercial property owners:
1. HELP YOU FIND OTHER FINANCING. If your property meets strict requirements such as: 20%+ equity, Debt Coverage Ratio 125%+, good FICO, liquid PFS, and you’ve made all payments on time, we will help you obtain federally backed funds with favorable terms.
2. NEGOTIATE A DISCOUNTED NOTE BUY-OUT WITH YOUR BANK. If you have low or no equity, but you have a viable repositioning plan including an experienced repositioning team along with some cash reserves to put in, we have a fund that can likely help you preserve your ownership.
3. LOAN MODIFICATION TEAM. If you have a strong property story with a realistic new NOI and can show that the equity loss was outside of owner’s control, we have a reliable team that will help you negotiate a loan modification. Some fees are required for this effort.
4. JOINT-VENTURE ACQUISITION WITH RENUVEST PRIVATE EQUITY CAPITAL GROUP. If you are unable to qualify for these other proven alternative methods, RenuVest has private equity capital that is targeted for acquisitions. Note: we happily cooperate with commercial brokers that bring us potential Joint-Venture Acquisition opportunities.
Please contact us today to discuss your situation and put our experience to work for you.
Call RenuVest at (800) 607- 9552 today!
