ch capital 504 single borrowers program
TRANSCRIPT
CH Capital Partners LLCSBA 504 Single Lender LLC
Data-book
For Single Lenders LLC Borrower
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SBA 504 FMLP Single Loan Lender Program Disclosure
• CH Capital Partners LLC will act as an agent of the SBA 504 FMLP Pooling business. CH Capital Partners LLC have hold harmless of the transaction and deem to have accurate information from third party sources. That information can change without notice. CH Capital Partners LLC takes no direct or indirect liabilities of the transaction. The transaction liability is dependent on the borrowers. CH Capital Partners LLC requires the single entity lender or lenders to have seasoned funds of the investment of the 7.5% of the whole conventional loan of the first lien position for 6 months or request the where the capital sources were made. Example, if the 6 month of seasoned funds cannot be proven, CH Capital Partners nor any of it’s affiliates cannot make the transaction of the SBA loan possible. SBA 504 FMLP Program is part of the American Recovery & Reinvestment Act of 2009, CH Capital Partners LLC is no way endorsed by the SBA nor backed by the SBA. CH Capital Partners LLC is an agent with various contracts that are related with third party. A member of CH Capital Partners LLC is a securities brokers with license in Series 7, 63, 65, life, health and business insurance. It is clear CH Capital Partners LLC, its members and any of its affiliated and non-affiliated business members are not acting as an Investments Advisors nor is it acting as an Broker. Through FINRA 3030 and outside business activities, CH Capital Partners LLC is acting as a Business Consultant and acting as an Originator of the e loan. CH Capital Partners LLC does not guarantee the information is guaranteed, it can change without notice. CH Capital Partners LLC warns the lender that if there is money exchanged hands between the borrower/borrowers and the lender/lenders, it would be a federal offense. CH Capital Partners LLC does not takes responsibility of any wrong doing in anyone's part except it’s own.
| CH Capital Partners LLC a member of Cordell Financial Group
Corporate & Investment Banking Product Expertise
For SBA 504 FMLP (First Mortgage Loan Purchase)
Program
4 | | CH Capital Partners LLC a member of Cordell Financial Group
Proactively Delivering Ideas and Capital at Every Stage of a FMLP Poolers’s Life Cycle
• Complete Credit Write-up with SBA and RMA Standards
• Poolers need for fixed rate of return
• Convertibles• Research• Access to Institutions
• Creating Consistent Volume for Banks and Non-Bank Lenders
• Agented Transactions• Access to over 500
Mortgage Banking net-work with National Presence
CH Capital Partners LLC SBA 504 Whole Sale
• Most of the current Poolers
• Strategic Advisory Services
• Liquidation Policy Analysis
• Credit Matrix Review for NAIC Code
• Portfolio Review
• Highest Bid Goal• Investment Grade• Loan Syndications• Bank Debt• Interest Rate Review• Asset-Based Lending• Index Spread Review
• Derivatives• IO Strip Review • Securitization• Reviewing packages for
both CDC and First Lender
• UCC, Credit Box & Matrix,
• Balance Sheet Review
Consistent Corporate & Investment Banking Coverage for SBA 504 FMLP Program
Sok H. Cordell Jordan Blanchard
Loan Volume Due-DiligencePackaging and
StructuringBid and Market
MakingHerdon Audit Preparation
Corporate & Investment Banking Product Expertise for SBA 504 FMLP Program
• The chart below and descriptions on the following pages detail some of the core Corporate & Investment Banking products, which allow Wachovia to provide comprehensive solutions to its clients.
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SBA 504 FMLP Process for Single Asset LLC
| CH Capital Partners LLC a member of Cordell Financial Group
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Misconception in the Market Place
• Misconception in the market place – The banks are sitting on tons of cash– Banks can lend, but they do not want to
• What is a loan to a consumer?– It is a instrument to borrow money to expand business and take risk and make a good return.
• What is a loan to a investor?– It is investment, where I lend money to the lowest risk and maximize my return
• Community Banks – They are there to lend money to the community
• Commercial Banks – They are the Fat Cats that are making so much money
• The difference
| CH Capital Partners LLC a member of Cordell Financial Group
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Misconceptions in the market place
• Bank are sitting on tons of cash– $15 Trillion or so asset value evaporated between 2008 and 2009, those values are sitting on balance sheets of
many private banks who are not taking the losses – Just because you see on the news that many banks took the losses, does not mean, next day all the losses are
gone. Losses are the regulatory forced amount• Point of view of the borrower
– Business loans – make an investment into a company by borrowing to expand, so through hard work and sweat , business owner can make a lot of money. It sounds like an equity investment .
• Point of view of the lender– Business loans – make an investment that is safe and the investor does not what lose money. This is my safe
money. It sounds like a Bond investment• What is a community bank
– Community Banks function today is to make money for it’s shareholders• What is a commercial bank
– Commercial Banks function today is to make money for it’s shareholders• Difference
– Nothing
| CH Capital Partners LLC a member of Cordell Financial Group
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SBA Loans
• SBA Loan Program market has not had any major change for over 25 years• Community Banks are not the usual banks who deal 10 to 20 affiliate entities when global cash-flow
is the standard with the new regulations after the financial crisis• SBA has recently increase the loan amounts to stimulate the economy with the American Recovery
and Reinvestment Act of 2009.• SBA has allocated 3.3 to 5 Billion in SBA 504 FMLP (First Mortgage Loan Purchase Program)
• Unfortunately Humans cannot adjust to the speed of light that robots can adjust to.• Community Bankers today are not compensated to work long and hard to end up not being able to
comprehend, plan and educate their bankers, prepare the technology purchases and adjustment to execute the task.
• Assets that are becoming the most toxic are hotels and gas stations. Like individual investors follow an asset allocation, so do banks, so as long as FDIC believes that hotels and gas stations are risky, then the hotel and gas stations will have a difficult time finding loans.
| CH Capital Partners LLC a member of Cordell Financial Group
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CH Capital Partners LLC
• CH Capital Partners LLC is an Commercial Mortgage Banking firm that specializes in the SBA 504 FMLP Program.
• CH Capital Partners LLC create loan, not brokered, but actually fully underwritten in accordance with the SBA SOP, packaged and structured with experienced bankers who are familiar with the SBA loan credit, structural and underwriting standards.
• Consumers may not understand, SBA is a 33 Billion dollar a year market.• Click Me --- SBA Loan Report • Click Me --- SBA Loan Report 2• If you Click Above, you can see the General Accounting Office has done research in the SBA loan
market and can explain where we are in the transparency of the bond market of SBA.• Is so small market, so small in comparison to many of the other markets like Fannie Mae, Freddie
Mac, and FHA.
| CH Capital Partners LLC a member of Cordell Financial Group
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Complete Process Simplified
• Lawyers Title opens title and Escrow• Create and Open an LLC• Identify the CDC (Community Development Company) to get SBA Loan Number• Single Asset LLC (operating agreement, Business license, EIN number)• Bridge Lenders for First and SBA loans• Third Party Reports• Final Credit Package • Purchase and Sale Agreement for the 85% and Bridge Lender• Document Preparation • Closing
| CH Capital Partners LLC a member of Cordell Financial Group
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CH Capital Partners LLC finds Bridge Lenders to
close the loan
2 to 3 weeks
CH Capital Partners LLC originate, package and sell
the loan
1 Week 2 ½ weeks
CDC gets the SBA Loan number which allowss the SALLC to hold 15% of 50%
loan
Time Line of the Process
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Part 2 Part 3 Part 4 Part 5Part 1
Sign Contracts for SALLC and Borrowers .Open Escrow & Title
Gather all professionals to
coordinate the closing process
CH Capital delivers the complete packge to
SALLC, buyers and SBA
CH Capital Partners Arranges the Parties to
close the loan
CH Capital and it’s partners create,
execute alll contracts
CH Capital Partners LLCreviews all prepared docs and closes the loan
Loans Closed
5 Parts of SALLC
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1 2 3 4 5 6 7 8 9 10 11
Open Title Lawyers Title
Identify the CDC Project
Single Asset LLC established
CH Capital creates credit Guidelines for
SALLC
Third Party ordered by CH
Capital
SBA 504 LoanNumber
Deposit 15% of the 50% with
Lawyers Title
Operating Agreement
and Lenders
All Operating agreement is provided CH
Non-Banks no FIRREA
Full Credit Package Delivery
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CDC and SBA provide SBA
loan number
This is an example text. Go ahead and replace it with your own text. It is meant to give you a feeling of how the designs looks including text.
Phase I
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13 14 15 16 17 18 19 20 21 22 23
CH Capital Delivers
85% buyer the Credit Package
Poolers deliver the purchase and
sale of 85%
Single Asset LLC accepts the PSA
of the 85%
Bridge Lender for 1st Lien
Bridge Lender for 2nd Lien
Third Party ordered by CH
Capital
CH Capital Partners LLC delivers the
commitment to sell 85%
SALLC gets copy of Credit
Package
Operating Company
Agreement
All Operating agreement is provided CH
CH Capital provides SBA, CDC required
Paperwork for close
Attorney’s review the
closing docs
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Closing Document is
provided
This is an example text. Go ahead and replace it with your own text. It is meant to give you a feeling of how the designs looks including text.
Phase II
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Phase III – Closing
| CH Capital Partners LLC a member of Cordell Financial Group
SALLC
SALLC deposit’s 15% to Lawyers
Title
SBA Broker Dealer
Buys the 85%
CH Capital Partners
LLCFacilitates Credit,
Package and selling of the loan
CDC SBA
Funds 40% of
the Loan
Lawyers Title holds 15% Escrow
15% is part of the loan proceeds, so the borrowers
receive the amount as a loan
Borrowers
Receives the loan proceeds
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SBA loans and how it is created
Loan Second Lien
First Lien SecondaryMarket
Creation of AAARated Bonds
Creators of AAABonds
Client's downpayment
CDC SBA Colson Services
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SBA bonds are sold in Mutual Funds
SBA BrokerDealers
Packages theloans into pools of
Agency AAABonds
Investors
Banks
InstitutionalInvestors
Mutual Funds
Pensions
You
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SBA bonds are sold to foreign countries
Creation of AAARated Bonds
AAA RatedBonds are
Ranked
Hedge FundsPrivate EquityInstitutional
Investors
Primary Dealers
Secondary Dealers You are theInvestor
Foreign Countries
InstitutionalInvestors
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SBA 504 Debentures have been selling for over 20 years
SBA BrokerDealers
Packages theloans into pools of
Agency AAABonds
Investors
Banks
InstitutionalInvestors
Mutual Funds
Pensions
You
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How the Government Bonds receive Certificate
Colson Services
Computer Systemto create
GovernmentSecurities
Keeps those CUSIPCertification current
and accurate
Colson services theSBA and USDA Loan
Portal System theyissue the certificate
number forGovernment Bonds
CUSIP Number iswhat people look atto see if the AAA is
AAA
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Who is working to create the loan
Project Team
Banks andNon-Banks
SBA UnderwritingGuidelines
SOP (StandardOperationProcedure)
Secondary Market
Attorney's
CDC (CommunityDevelopment
Company)
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Identify the Project and who you are lending to
• Identify the SBA 504 Total Project• Calculate how much the 7.5% of the total Project• Decide what rate you would like to charge, there will be minimum for the borrowers• Create an LLC in Nevada • Order the Third Party Reports • Conference call for the return and expectation • Time line of the transaction • Final the close of the loan
| CH Capital Partners LLC a member of Cordell Financial Group
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Create an LLC in Nevada
• Identify the LLC • Review the Loan LOI and Sign the Loan Documents for Third Party and Fee Agreement • Accept the term of the loan and send in the Deposit
– Review with Attorney and Single Entity LLC for Member Documentation– Make sure it is inline with your personal plan as well as your Estate Plan– Single Entity Members need to review with an Attorney to accept documents that are set forth by the State of
Nevada.– US Tax Aid Services will be the agent whom LLC will be created– US Tax AID Services have been written about in Wall Street Journal, CNBC, LA Time, Market Watch and
Bloomberg. They specialize in saving businesses taxes, furthermore their expertise relies on the Nevada Single Entity LLC rules and regulations. Nevada has one of the best lenders laws for this type of loan.
| CH Capital Partners LLC a member of Cordell Financial Group
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SBA 504 FMLP Single Loan LLC Entity Program
• Lawyers Title will be hired to close the loan• Hold the funds for disbursement • Closing and satisfying the SBA 504 FMLP and SBA requirements • One of the Largest Escrow, Title and Closing firm in the country • This will be the third party group that will hold the capital, if for whatever reason that the loan
cannot be closed, there will be a full refund.• Home Land Security Verification • Season Funds for 90 days • 1925. Calvin Coolidge was the country's chief executive. The Charleston craze was going strong. F.
Scott Fitzgerald published The Great Gatsby. The United States was experiencing one of the dizziest land booms in history. And in Richmond, Virginia, Lawyers Title was born.
Today, Lawyers Title is a proud member of the Fidelity National Financial, Inc. (NYSE: FNF) family of title companies, which collectively represent the largest title insurance and escrow services company in the world.
• A Fortune 500 Company
| CH Capital Partners LLC a member of Cordell Financial Group
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SBA 504 FMLP Single Loan LLC Entity Program
| CH Capital Partners LLC a member of Cordell Financial Group
•Lawyers Title
•Title-Related Services
Specialty Finance Solutions
• Reconveyances • Recordings • Attorney Services • Flood Certification • Credit Reporting • Collection & Trust • Trustee Sales Guarantees • Real Estate Tax Service • Foreclosure Publishing & Posting • Exchange Intermediary Services • Real Estate Information & Technology Services • Originating • Funding • Purchasing • Selling • Securitizing • Equipment Lease Servicing
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SBA 504 FMLP Single Loan Entity Program
• Accept the Rate and Term of the Loan • CH Capital Partners LLC explains the rate, loan term and creation of the loan• There are based rate and Index with par pricing available, these rates are subjected to change.• Variable• Fixed 5 Years• Fixed 7 Years • Fixed 10 Years• Potential –• Fixed 15 Years• Fixed 20 Years• Fixed 30 Years
• All the rates are subjected to change, furthermore the spread or the rate plus index can change without notice. The secondary markets are subjected to change. There is no guarantee that a certain rate is attainable. The rates can be managed, and CH Capital Partners LLC or 504 Wholesale are hold harmless if the rate changes, regardless of the reason which caused the rates to change.
| CH Capital Partners LLC a member of Cordell Financial Group
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SBA 504 FMLP Single Loan Entity Program
• Receive the Package and the Purchase agreement from Third Party• Nationally Recognized third party Appraisal Company• Nationally Recognized Environmental Company• Deposit for SB Capital:
– Bank: Heritage Bank of Commerce– Address: 419 So. San Antonio Road, Los Altos, CA 94022– Name on acct: SB Capital, Brokers Account – Routing No: 121142287– Account No. 541003679
• Deposit for CH Capital Partners LLC a member of Cordell Financial Group– Bank: Chase Bank – Address: 4732 NW Bethany Blvd, Suite G-1, Portland, OR 97225– Name on acct: CH Capital Partners LLC a member of Cordell Financial Group– Routing No: 325070760– Account No. 3570829314
| CH Capital Partners LLC a member of Cordell Financial Group
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SBA 504 FMLP Third Party Reporting Companies
• Appraisal Company:– Keith Dawson (Dawson Appraisal , Inc.) – [email protected]– Office -(714) 901-2222– Mobile – (714) 726-6183– 15581 Placid Circle,– Huntington Beach, CA 92647
• Environmental Company:– Partners Engineering and Science– Marshall Stancliff– Clients they represent: • Mission Oaks National Bank, Key Bank, Zion’s Bank, United Western Bank, Mountain
West Small Business Finance, Excel National Bank, Wells Fargo Bank, Nevada Commerce Bank, Evergreen Business Capital, Community South Bank, Georgia Certified Development Company, Mercantile Capital Corporation.
– Members of NAGGL (national government guaranteed lenders), NADCO (National Association of Development Companies, EBA ( Environmental Bankers Association)
• Document Preparation Company – Cortland Capital Market Services LLC – clients – JP Morgan, Morgan Stanly, Goldman Sachs, Citibank– Also your servicers of the Loan
| CH Capital Partners LLC a member of Cordell Financial Group
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SBA 504 FMLP Single Loan Entity Program
• The first Lien Bridge Lender• CH Capital Partners & SBA wholesale have variety of lenders from Hedge Funds, Private Equity,
Commercial Banks, Community Banks to help the Single Entity LLC member retain a loan through the FMLP Program
| CH Capital Partners LLC a member of Cordell Financial Group
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SBA 504 FMLP Single Loan Entity Program
• Closing Docs • Cortland Land Document Services which will create documents in conjunctions with CDC SBA 504
Debenture. Cortland has significantly large pools of Government loan to manage and understand the wide variety of Government Loan Servicing.
• Cortland also with the development of LLC can help the liquidation of the incase the default.
| CH Capital Partners LLC a member of Cordell Financial Group
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SBA 504 FMLP Single Loan Entity Program
• SBA 504 Debenture Bridge Lender • CH Capital Partners & SBA wholesale have variety of lenders from Hedge Funds, Private Equity,
Commercial Banks, Community Banks to help the Single Entity LLC member retain a loan through the FMLP Program
| CH Capital Partners LLC a member of Cordell Financial Group
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SBA 504 FMLP Single Loan Entity Program
• What Happens to your 7.5%– You as the borrower receives the 7.5% of the whole project as a full disbursement– After the Loan closes, the borrowers will have the proceeds of the loan.– You will receive a membership owners certificate from the LLC that owns 15% the loan of the First Lien
Conventional Loan with Secondary Market owning 85%– 15% of the loan is not guaranteed, however, the collateral has to be lower then the 50% of the current appraised
value. This is in no guarantee that incase of default, the 15% would be saved.
| CH Capital Partners LLC a member of Cordell Financial Group
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SBA 504 FMLP Single Loan Entity Program
• 90 days to 120 days of collection of Mortgage Payment• Removes the potential to have the loan go through adverse financial condition• This loan is paid on the 1st of the month, but because of the servicing, the loan through Colson
Services may be credited until the 15th of each month.• Due to the delay in Government Loan servicing, we require the borrowers of all SBA 504 FMLP to put
in escrow or through ETF, that payment in advance for the lenders protection.•
| CH Capital Partners LLC a member of Cordell Financial Group
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SBA 504 FMLP Single Loan Entity Program
Servicing of the LoanCortland Capital Market Services LLC is a leading independent investment servicing company providing fund administration, commercial bank loan servicing, securitization services, and middle-office support to financial institutions including proprietary trading and alternative investment managers, banks, and commercial lenders.
Utilizing state-of-the-art process technology, Cortland's experienced professionals deliver effective investment servicing solutions to our clients across asset sectors including structured finance, real estate, managed futures, equities, distressed debt, syndicated bank loans, conventional C&I loans including SBA and USDA guaranteed, tax liens, and more.
Online accounts will be available for the Lender. Online Report will be available Member of LSTA (Loan Syndication and Trading AssociationMember of NAGGL (National Association of Government Guaranteed Lenders)Member of CRE Finance Counsel
| CH Capital Partners LLC a member of Cordell Financial Group
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SBA 504 FMLP Single Loan Entity Program
• Courtland Services – one of the largest Loan Servicer of America• Clients like – JP Morgan, Morgan Stanley, Goldman and many of the worlds largest banks• Need to provide the ETF account Number• Deposit of the loan interest and principal payment on 7.5% of the loan• Electronic Privacy will be mandatory from the servicers program
| CH Capital Partners LLC a member of Cordell Financial Group
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SBA 504 FMLP Single Loan Entity Program
• Loan will be serviced by Cortland Capital Markets LLC• Monthly Payment Monitoring• Tickler reports • Auto-deposit Program • ETF Forms for monthly payment • Annual reports • Quarterly Report on the SBA 504 First Lien Loan • Servicing Programs • Tickler Report• Annual Tax Reporting• 1099 Distribution
| CH Capital Partners LLC a member of Cordell Financial Group
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• Our YouTube Channel
| CH Capital Partners LLC a member of Cordell Financial Group