Can I Sign Nevada Banking Document

How do i industry sign banking nevada document safe

welcome to the investor financing podcast where we interview real estate investors in lenders so you can learn all the secrets to getting your projects funded and scale your portfolio learn about fix and flip loans per financing rental fix to rent commercial multi-family bridge loans business loans and so much more and now your host beau eckstein hi this is bo eckstein with the merged lending group and today we're going to talk about usda business and industry loans guaranteed loan program so what does this program do this program bolsters the availability of private capital by guaranteeing loans for royal businesses and then who may apply for this type of funding you've got for-profit businesses non-profits cooperatives federally recognized tribes public bodies and individuals as well and this program is really designed for rural america we're talking about any area other than a city or town with a population of greater than 50 000 inhabitants in the urbanized area of that city or town the borrower's headquarters may be based within a larger city as long as a project is located in an eligible rural area and typically the lender can be anywhere and can land in any state but it also depends on the jurisdiction of that particular lender you're dealing with state and federal chartered chartered banks savings and loans farm credit banks credit unions and private funds that offer these business and industry guaranteed loans through the usda how may funds be used business conversion enlargement repair modernization or development purchase and development of land easements right away buildings or facilities purchase of equipment leasehold improvements machinery supplies for inventory debt refinancing when refinancing improves cash flow and creates or saves jobs business and industrial acquisitions with when the loan will create or save jobs and then what can't these funds be used for line of credit owner occupied housing golf courses race tracks or gambling facilities churches fraternal organizations agricultural production with certain exceptions so let's dig into it a little bit more here so this is what it looks like as far as uh usda business and industry loans uh this year actually in 2006 we we're not updated here you know they did a little bit less that actually they got did 1 billion i think we're about 1 billion in 2019 as well so it's not a huge huge program but it really fits the the needs of small town america and it and this could be for funding many different businesses just the business aspect of it equipment and or real property like commercial property in our next slide here's a breakdown so they show in 2019 kind of the breakdown of what product or loan types were made so you can see the majority is uh accommodation and food service hospitality and food service and then real estate and rental listings was about 14 and there's manufacturing there's arts and entertainment there's wholesale there's construction healthcare so it's a good mix of different you know business types that can be funded usda bni is similar to sba there's some differences we can go as high as 25 million on this loan versus a five million dollar sba 7a for example the other big difference is we can do up to a 30-year term if it's real estate asset related for equipment and things it's a little bit shorter amortization there are prepayment penalties on both these types of asset classes loan types usda and sba the really nice thing about usda is what it does is usda is guaranteeing a certain percentage of the loan amount and a lot of banks won't go into these secondary or tertiary markets so having the ability to for these banks and these different other lending organizations to have a guarantee they're they're more willing to lend in these areas to stimulate the economy in these rural areas so on the next slide here here's some examples of some fundings that there could be uh for example 10 million dollar funding in nevada for a battery recycler there's hotels there's entertainment like wedding facilities parking lots adventure parks i mean there's just a lot of different things hotels any type of uh processing plants and different things so let's talk about how deal structures might look you're listening to the investor financing podcast we'll be right back after this break are you looking for funding are you getting frustrated trying to find a lender visit investorfinancingpodcast.com and click the get funding button complete the simple form and schedule a free phone consultation with one of our placement specialists we have a proprietary directory of funding partners that can help you get the funding you need it's fast and easy to explore the options available for your specific needs don't wait visit investorfinancingpodcast.com and get connected so here's the credit box property eligibility fifty thousand less population you simply send me the address of the business and i can do a quick search for you and tell you if it's in an eligible area 97 of the u.s land area is eligible we can go 80 ltv for real estate 60 to 70 percent loan to value for m e and f e on uh equity we need 10 for existing businesses for refinances of equity we need 20 infusion for new businesses we're looking for a debt service coverage ratio of 1.25 typically anybody that has 20 more of the company needs to sign a personal guarantee uh deal structures anywhere typically from 1.5 million to 25 million it's wall street journal prime rate plus a margin so right now uh rates are in the fives typically but those are it depends on you know what type of business and if there's real estate involved prepayment penalties are between a five year to ten year declining prepayment penalty origination fees are one to two percent usda has a fee of 1.8 to 2.4 of the guaranteed loan amount and then usda could have additional annual renewal fees sometimes it's built in with the lender so it's kind of her lender and so the way we're structured here at emerge lending is we work with the top usda lenders and based upon what their appetite is so each of these lenders for usda has like a different appetite of what they like what they don't like i mean it generally all fits in one box but some are more aggressive for certain loan types and so we work with our lending partners and figure out the best avenue to bring your your your loan request to to get it funded ineligible uses we went over this already churches golf courses casinos strip clubs hospitality with time shares anything residential in nature homes apartments they do have another usda program i should say which is for multifamily and you can reach out to me if you're interested in a rural tertiary market and you want to see how to get some leverage for construction or to acquire existing multi-family property so let's move on here uh here's a case study uh from one of my lending partners this business had it was a sand mine they had they were paying they had a lot of debts and at the end of the day we were able to take their existing debts refinance the all of their monthly revolving bills essentially and then they went from 110 000 a month in debt in payments to 33 000 a month in payment by refinancing all these debts into one loan so that's the capabilities of this usda bni program so it has many uses screening and underwriting process here basically initial screening we have a conversation you reach out to our company or myself we talk we get some initial feedback and documents we do kind of a pre-flight investigation and then we go into uh kind of a soft term sheet uh so basically after our initial package that we put together we send it on to our lending partners we we figure out which lending partner will be the best they issue a uh kind of a soft term sheet and then um i should say here that i don't or emerge landing doesn't underwrite the group our lending partners do they underwrite the loan they package the loan and then it actually goes lastly to usda for a final check off and uh underwrite to make sure everything is is is ready to go and then you have your approval from there these are the items needed i can send this to you if you're interested we can obviously of course talk beforehand just a borrower release form project address entity name pfs on guarantors ownership structure business plan or summary uh obviously we need to know the total loan proceeds you're looking for detailed list of use of funds scheduled of debt accounts receivable on aging report organizational documents financial statement three-year historical bs ic or cf uh year-to-date financial statements less than 90 days old at least two years of pro formas um so so why a merged lending group uh we work with the top six lenders in the nation uh we have great relationships with them we figure out where to place your loan where it's going to go through with the the least headache um you know our underwriting team internally we have lots of experience with usda and sba so we can help you kind of figure out what the best options are it might not be a usda loan maybe a sba makes more sense maybe sba 7a maybe a 504. these loans are assumable there's high advance rates and there's long-term amortization which you know can increase your cash flow and at the end of the day once this is vetted it goes and the yes is a yes and we can get this thing closed for you quickly my contact information you can visit me at emergelending.com and inquire and find all my contact information my direct number is 925-852-8261 or bow at emerge lending dot com and i wanna really thank you for uh taking part in this short educational tutorial on usda bni loans and if you have any questions please feel free to reach out and i will do my best to get in there and figure out what what options are available and we have so many different options and not just usda but sba as i was saying we have private funding sources we have ar we have asset-based loans commercial loans of all different sorts so we really want to be a one-stop shop for you to help you and your business and your real estate perform at the best it can and lastly i'll just say that typically this process is a 60 possibly a 90 day process from start to finish to get you approved assuming you have all your documents i look forward to connecting with you and have a great day thanks for listening to the investor financing podcast for show notes and useful resources please visit investorfinancingpodcast.com for questions or comments email info investorfinancingpodcast.com if you enjoy our show please share it with your network until next time