[abfunders]

Client owns his home worth $1.5mm with a mortgage of $100,000. He needs to get out of the SBA in order for my factoring program to come in. Subcontractor, doing about $130,000 monthly right now. Excellent credit, both he and his wife. I have several solutions on the personal side, but the problem is now that a business-purpose loan on an OO residence in NY is no longer possible as of 9/19/19. Or something like that, I don't know how SBAs work.

He needs a really $800,000 to buy out the SBA, net about $200,000 for working capital. The SBA lender refuses to subordinate.

He's been to his bank, and he qualifies, but he doesn't want to wait 2-3 months and do all of the paperwork he needs to do. He's just not a paper pusher, and it takes ages to get any docs out of him, but if he has a good program, he'll move properly.

Any recommendations of NY-licensed brokers who can do something creative would be helpful.

[RichardGerard]

Micah good morning.. Touch base- I do know how the SBA works- a lot of the information isn't stacking up. If the property in question is as valuable as you describe we have an in house program that can help (NY METRO AREA ONLY). We can take the first on the property- up to 75% LTV- as long as we like the area (and value) we can close as swiftly as appraisal and title allow. The money is private and cost is typically 10/4 plus Broker (18 month balloon)- contingent on credit and perceived exit. Yes: even OO.

As for exit-I would need to know which bank- specifics on existing loan (and collateral), and of course to see PAPER- even though the client is reticent to supply it. No quick fix here. Banks need to know how they can perfect a lien in the event the client goes sideways, and so do we- to make sure we understand the entire situation- and if makes sense to do what you are proposing.

Trying to wrap around why a Sub doing 130k a month would want to Factor AR (likely 350k up to 90 days- at construction factor rates) at a much higher cost of capital- than keep existing loan in place that is sub 10%. Even if new project and/or WIP is substantial why would a client pay 2.5% interest per month (over 30% annually)? Blended cost of capital for existing loan PLUS a strong first position advance is better- wouldn't you say???? The fact that the client isn't a 'paper pusher' makes the this solution infinitely more palatable. Weren't you saying the other day how aggressive Principis is being lately with their offers??

Even though you have my cell please call Kelly at our office (631-880-7501) to get on my call Calendar to discuss options.

Richard Gusmano, CEO & Founder
Business Capital Consultants USA
3237 Route 112 Suite 9
Medford, NY 11763

www.bccusa.com

[abfunders]

Richard, always nice interacting.

I spoke with the current lender (I'm sure you know Scott Peeper) and he was explaining to me that his AR moving forward doesn't need to be factored. The only issue now is that the SBA changed from I/O to P+I and is eating into his working capital.

I was under the impression that the factoring would help on the new jobs, not using the factoring to buy out the SBA, as it would be higher cost of capital, just easier to manage. After speaking with Scott, I found out yesterday that I was incorrect.

An advance might help him in some way, but there's no need to go that route since we have Scott's firm in position to help fund him and the invoices get paid.

If he wants to refi the SBA, then he can to settle his mind and get 4% money, but at this point, there doesn't appear a need to so.

[RichardGerard]

Hey Micah. I am not familiar with Scott. What I will say is that banks change revolvers to P/I based on Financials and/or their Portfolio concentration with a vertical. Either way- if the bank owns the asset(s) parsing out the AR in Construction- as you mentioned yesterday- will likely not be something they will be comfortable with unless factor subordinates to them with an inter-creditor to stand second in line in the event of a default.

Not sure where the client will get 4% money if he refi's the SBA- unless it's on Real Estate- given that Prime is above that..

[abfunders]

He would just refi his personal home into a traditional mortgage.
Oh, and we asked, and the bank won't do any subordination, even though they are way over-collateralized between their blanket UCC on his business, his equipment, his AR, and the $1.4mm extra equity in his home (worth $1.5mm).

[RichardGerard]

The refi makes sense- unless he isn't showing earnings to substantiate it (We all know business owners try NOT to show profits- and roll personal expenses into business expenses).

[RichardGerard]

Micah- also verified with two local banks to see if NY Homestead exemption has changed as 9/19- not to the best of their knowledge. Herein is the law:

Under New York's homestead protection law, the amount property owners may declare exempt varies based on county location and range from $75,000 to $150,000. The exemption amount is doubled for married couples, which can be as much as $300,000 for a couple in Suffolk County, for example.

[abfunders]

Richard, Jerry Starr is the one who clued us into this new law on this board. Ask him. Jerry, care to help us out?

[Jstarr]

Sure, But the law wasn't regarding Homestead, it was regarding private lenders and OO properties -as of July, any lender caught making loans against oo properties could be charged with a felony.. now, i doubt this will happen, but you don't want to be the one finding out. ill send you an email micah.

Richard, Jerry Starr is the one who clued us into this new law on this board. Ask him. Jerry, care to help us out?

[RichardGerard]

Sure, But the law wasn't regarding Homestead, it was regarding private lenders and OO properties -as of July, any lender caught making loans against oo properties could be charged with a felony.. now, i doubt this will happen, but you don't want to be the one finding out. ill send you an email micah.

Thanks Jerry and Micah- With Bank loans- we can attach to the residence as additional collateral.. We can go up to 85% of the available equity. Also- if the lender is Licensed with NYS Dept of Financial Services they can write loans against OO Homes in the State

[BillionzandBillionz]

Thanks Jerry and Micah- With Bank loans- we can attach to the residence as additional collateral.. We can go up to 85% of the available equity. Also- if the lender is Licensed with NYS Dept of Financial Services they can write loans against OO Homes in the State

You are a broker, please stop pretending like you are a direct lender.

Richard Gusmano, managing director at Huntington, N.Y.-based
Business Capital Consultants, and Gary
Lockwood, its chief operating officer,
serve as brokers connecting borrowers
to the right online lender. Gusmano said
many clients are hungry for capital and
don’t know where to obtain it so they
turn to brokers for assistance

[RichardGerard]

You are a broker, please stop pretending like you are a direct lender.

Richard Gusmano, managing director at Huntington, N.Y.-based
Business Capital Consultants, and Gary
Lockwood, its chief operating officer,
serve as brokers connecting borrowers
to the right online lender. Gusmano said
many clients are hungry for capital and
don’t know where to obtain it so they
turn to brokers for assistance

Hahahahahaha... Very old information.. Haven't been in Huntington in years and Gary Lockwood is at 6th Avenue Capital running their ISO's- and more.

I've been on this blog awhile. Those that have been around more than a month know that I do not misrepresent what we do.

'WE' can arrange loans and UTILIZE 85% of the available equity on their homes as additional collateral so that lenders can endeavor to perfect a lien. We DO work with Several Banks- and fully understand their Underwriting Guidelines.

Our Real Estate Attorney (long-time friend and Confidant) has an NMLS # and is Licensed to lend in NYS- only on deals that he has an appetite for. We have helped Brokers on this Blog with this service on OO and CRE.

For your own edification: we do assist clients occasionally with our Capital as Bridge to deals that we arrange. Nothing more.. we do well enough Brokering that we don't see the need to lend.

What about you? Where are you based? What's your name? What does BillionzandBillions mean?

[BillionzandBillionz]

Hahahahahaha... Very old information.. Haven't been in Huntington in years and Gary Lockwood is at 6th Avenue Capital running their ISO's- and more.

and more..... so impressive, Are you proud of him?

I've been on this blog awhile. Those that have been around more than a month know that I do not misrepresent what we do.

you are a nobody, writing founder & CEO on your signature doesn't make you special and spamming your employees email around as if you're too busy to handle clients but have all the time in the world to come on here post.

'WE' can arrange loans and UTILIZE 85% of the available equity on their homes as additional collateral so that lenders can endeavor to perfect a lien. We DO work with Several Banks- and fully understand their Underwriting Guidelines.

you can arrange loans? you are a broker, plain and simple, nothing wrong with that just say it loud and proud.

You know Banks underwriting guidelines? thats wonderful, you should probably stop memorizing guidelines as they are provided to anyone by the banks website directly.

Our Real Estate Attorney (long-time friend and Confidant) has an NMLS # and is Licensed to lend in NYS- only on deals that he has an appetite for. We have helped Brokers on this Blog with this service on OO and CRE.

I have a buddy I grew up with thats a doctor now, and has a doctor license... can I start pretending that I am an orthopedic surgeon ?

For your own edification: we do assist clients occasionally with our Capital as Bridge to deals that we arrange. Nothing more.. we do well enough Brokering that we don't see the need to lend.

I have never seen you on bank statements as an MCA funder and I dont see your lending license on your website. Here is the truth. You are an MCA broker that has a friend or two in the mortgage industry.

By the way, using big words doesn't change the fact that you are not a licensed lender, nor do you fund anything with your own money.

What about you? Where are you based? What's your name? What does BillionzandBillions mean?

my name is Mr Billionz with a Z
I am based out of the USA
it means not just billionz but billionz and billionz

I bust Stupid Dope Moves and Bomb Atomically

[RichardGerard]

and more..... so impressive, Are you proud of him?



you are a nobody, writing founder & CEO on your signature doesn't make you special and spamming your employees email around as if you're too busy to handle clients but have all the time in the world to come on here post.



you can arrange loans? you are a broker, plain and simple, nothing wrong with that just say it loud and proud.

You know Banks underwriting guidelines? thats wonderful, you should probably stop memorizing guidelines as they are provided to anyone by the banks website directly.



I have a buddy I grew up with thats a doctor now, and has a doctor license... can I start pretending that I am an orthopedic surgeon ?





I have never seen you on bank statements as an MCA funder and I dont see your lending license on your website. Here is the truth. You are an MCA broker that has a friend or two in the mortgage industry.

By the way, using big words doesn't change the fact that you are not a licensed lender, nor do you fund anything with your own money.



my name is Mr Billionz with a Z
I am based out of the USA
it means not just billionz but billionz and billionz

I bust Stupid Dope Moves and Bomb Atomically

Speaking of Stupid- great quote:

'Never argue with stupid people, they will drag you down to their level- then beat you with experience.'

Best of luck to you and yours.

[BillionzandBillionz]

Speaking of Stupid- great quote:

'Never argue with stupid people, they will drag you down to their level- then beat you with experience.'

Best of luck to you and yours.

What happened Mr CEO and Founder? You go from big words and alot of hot air to just calling people stupid.

Maybe you should let Jared handle this one as well

this guy is a legend
http://www.parkcitymortgage.com/lo_jared_lagemann.php

[RichardGerard]

Never called anyone stupid- but if the shoe fits.

Curious though- why won't you just say who you are?

[BillionzandBillionz]

Never called anyone stupid- but if the shoe fits.

Curious though- why won't you just say who you are?

just looked you up on the NYS court website, not good Richie... Not Good

[RichardGerard]

hahaha- sure you have the right person? I've adopted a child- THOROUGH background checks on that.

Guessing there are reasons why you won't say your name