[brokerCompany]

Client has Real Estate 3.9M
14M annual gross revenues. Profitable
Medical Industry Services.
Looking for a $5M term loan with the real estate rates under 7%

[michaelh]

Well if your looking to do real estate as collateral - your numbers don't add up. If the property has an appraisal of 3.9 million 60 to 80 percent LTV is what should be expected. Where do you come up with 5 million? What else are they pledging for collateral? If you look on the Board Jerry Starr does this type of loan.

Mike

[wallerbusiness]

Client has Real Estate 3.9M
14M annual gross revenues. Profitable
Medical Industry Services.
Looking for a $5M term loan with the real estate rates under 7%

There Max Cash Out Refi on this deal would be about 65 to 75% Most businesses would not need 5M liquid. The key is to find out what he is going to use the funds for. Thats the key. That way you can figure out which route to take him. 5M just for working capital is a serious red flag! Is he or she trying to aquire a business? Is he or she trying to purchase equipment? Do they have equipment? Do they have A/R? Do they have other assets? These are all different questions to ask because the questions determines they type of loan. I think you have to be skilled in various products to be a succesful broker. These are my thoughts!

[brokerCompany]

thanks. I am looking at a couple of SBA and commercial banks for this one.. Obviously not all the details in the first post.

[RichardGerard]

Seems like the Real Estate and the Receivables (not certain of the NET amount- but 14M annually would likely mean around $2M in receivables) might get the client there. The interest rate might need to be made more realistic however- especially if the AR is a big piece of the puzzle..