Real Estate Journal — June 12 - 25, 2015 — 15A
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M id A tlantic
C reative F inancing
Committed to providing small businesses with the capital they need Singer Financial Corp.: Your Hard Money Solution
O
bank’s ‘lending profile”. SFC is able to provide a financing solution to these borrowers by allowing them to tap into the equity in their real estate. Our business model allows us to make commercial loans that the big commercial banks are no longer willing to make. We remain committed to providing small businesses with the capital needed to address the many myriad of problems that they face. Singer Financial Corp., a private financial institution, makes real estate-secured commercial loans. We are
located in Center City Phila- delphia and have over 25 years of commercial lending experi- ence. SFC is a private direct portfolio lender. We offer loans up to 1 million dollars and will consider lending up to 60% of the value of a borrower’s prop- erty. SFC’s loan rates start as low as 11% and we offer loan terms up to 5 years. SFC primarily focuses on lending in South-eastern Pennsylvania, New Jersey and Delaware. We offer fast, courteous and professional service. Borrowers can obtain a loan commitment in as little
as 2 business days and we can close on a loan in as fast as 5 business days after commit- ment. We pride ourselves on offering creative solutions to your business problems. When the large commercial banks say “No”, SFC can offer a solu- tion by providing commercial financing to buy inventory, alleviate short-term cash flow problems, expand your busi- ness, avoid foreclosure and loan work-outs. If your busi- ness has a problem and needs financing, call us at 215-893- 9722 and let’s discuss how we can help solve your problem. n
ver the last few years, we have seen large commerc i a l banks
has an existing banking rela- tionship. Many of these bor- rowers were surprised when existing lines of credit were not renewed, or requests for new financing denied. Our experience is that small business faces a difficult econ- omy and a tidal-wave of in- creasing government regula- tion. The result of this new reality is reduced profits and financial problems. Many small businesses now find that they can no longer get the secure financing they need from their commercial banks because they no longer “fit” the
move away from small b u s i n e s s l end i ng t o o t h e r f e e based se r - v i c e s . The typical Sing- er Finan- cial Corp. (“SFC”) po-
John Licari SFC Representative
tential borrower has already sought and been rejected for financing from the commercial bank with whom the borrower Beyond capitaliza- tion rates in. . . 14.7% versus an IRR of 10.6% for Property B. The analysis above is purely “by the numbers” and, by defi- nition, does not include non- quantitative factors. While the slightly higher annual growth rate in operating expenses attempts to take into account the uncertainty regarding the stability of utility costs for a master-metered property, spikes in utility costs would have a dramatic impact on the performance of Property B. As a result, the predict- ability of Property B’s cash flows is much more difficult to assess. Uncertainty is risk and a transaction with enhanced risk should be modeled to gen- erate a higher IRR to an inves- tor. However, as the analysis shows, when the same dollar amount is paid for Property A and Property B, Property B actually yields a lower return – not the higher return that investors should expect. As this simple example il- lustrates, investors need to be wary of purchasing mul- tifamily projects based solely on going-in cap rate analysis. The performance of various acquisition targets needs to be analyzed with a focus on operating expense ratios, the allocation of utility costs and realistic projections for annual rent and expense escalations. Multifamily properties should be modeled over a 10-year holding period to test assump- tions and make informed de- terminations about the value of the future benefits being purchased. Dav i d L . Church i s mananging director at U.S. Realty Capital, LLC. n continued from page 13A
Singer Financial Corp. Since 1992
•Apartment bldgs. •Offices •Gas Stations •Construction •Store Fronts •Retail Space •Multi-tenanted office •Storage •Bar/Restaurants •Warehouse •Mixed Use •Raw land •Access Acerage •Farms •Industrial •Residentials* *Investment/Rentals only Financing All Types of Commercial Properties WE MAKE HARDMONEY EASY
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