6A — August 12 - 25, 2016 — Financial Digest — M id A tlantic
Real Estate Journal
F inancial D igest
Company offers buyers reasonably priced immediate financing for soft deposits Startup launches first lending platform BCRM Group, funds real estate due diligence deposits
EW YORK, NY — BCRM Group LLC , a real-estate deposit In response to the previ- ously unaddressed demand for capital, owners Ben Cohn and Randy Modell formed BCRM Group. Unlike anyone else in the industry, the com- pany offers buyers reasonably priced immediate financing for soft deposits, enabling them to sign contracts and close on properties. Typically, real-estate buyers N funding startup, will fund earnest money deposits for real estate acquisitions in the United States.
initiate their purchases with a “soft period,” during which they conduct due diligence before committing to proceed with the acquisition. Sellers customarily require an earnest money deposit of as much as 10 percent of the purchase price before granting the “soft period” to a purchaser and withdraw the property from the market. BCRMGroup was developed to ease the liquidity burdens of such deposits. “Countless talented entre- preneurs are forced to pass on buying opportunities because they do not have immediate funds available for the deposit.
With our platform, they will now have the ability to tie up deals while they raise the re- quired equity and debt,” said Modell. “Now investors will have the power they need to proceed with all real estate deals being considered.” Cohn and Modell believe this platform is geared toward borrowers of varying profiles, including: 1. Entrepreneurs beginning their real estate career. 2.Experienced investors, often presented with several opportunities, whose immedi- ate funds may be unavailable to tie up every deal being
considered. 3.Financial investors with a preference for delaying the internal rate of return clock by funding deposits off the balance sheet. 4.1031 exchange buyers who do not have the required funds to secure an exchange property. “Inspired by clients and contacts in the real estate in- dustry who have approached us for assistance with de- posit funding, we have cre- ated a success-based pricing structure that is sensitive to the buyer’s all-in costs,” said Cohn. “For deals that proceed
to close after the due diligence is complete, services will cost the buyer approximately one percent of the total purchase price.” Currently, the founders are financing this new venture from their own resources, with institutional backing and crowd funding as the next development in their growth. n Cronheim Hotel Capital secures $7.5m for Hilton Garden Inn
MOBILE, AL — David Turley, Janet Proscia and Jeffrey Pacailler arranged financing totaling $7.5 million for the Hilton Garden Inn in Mobile, AL. The 10-year loan was structured with a 30-year amortization schedule and executed via CMBS to replace maturing debt. The property was constructed by the bor- rower in 2008 and has become one of the top hotels in the market. Mobile has proven to be an exceptionally stable market over the past decade due to a wide variety of industry and employment. In addition, a number of recent develop- ments in the aerospace, ship- building and steel industries have provided strong catalysts for future growth and expan- sion. The Subject Property is well positioned to capture this demand. “CHC has built a strong track record executing deals of this type – well flagged and well located limited service ho- tels in secondary and tertiary markets throughout the U.S.”, said David Turley. “In general, lenders remain conservative on these assets. However, we’ve been very successful in understanding and commu- nicating the specific merits of each deal to secure favorable financing.” n
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