ATTENTION PRIVATE INVESTORS

In 2008, we have seen drastic changes in the lending parameters for most commercial loans.  We have secured numerous relationships with lenders, hedge funds, private investors, insurance companies, and pension funds,  so that every possible advantage can be provided for our clients.   That said, we are always seeking additional private investors to consider funding some of our loans for a superior investment offering  with enticing returns.  Currently, CMI has over 80 sales executives Nationally and Internationally.  We receive 10-15 commercial deals per day through our submission department.

Today’s Market

With the Investment Banks collapse and stock market melt-downs this September (2008), there is a revolution in the private equity and private investor market today.  Private equity is a good way to earn extra revenue on your hard-earned money.  Perhaps, you have your funds in a CD, CEDAR program, bond or any type of financial instrument…this opportunity can earn much more than 4% and the risk is low due to Collateral, Cash-Flow and Loan-to-Value of the project.

Private Money Opportunities

There is an abundance of various private money opportunities.  Basically, private money investing is the reverse side of hard-money lending, a type of financing in which a borrower receives funds based on the value of real estate owned by the borrower.  Private Money Investing (“PMI”) concerns the SOURCE of the funds lent to hard money borrowers, as well as other considerations made from the INVESTOR’S side of the equation.  

Bridge Loans

Bridge Loans (often referred to as short-term financing) are another form of loan we see perk the interest of private investors.  A bridge loan is interim-financing for a business until permanent or next stage financing is obtained.  When the money for a construction loan or permanent loan is obtained, the bridge is paid off.   Bridge loans are typically more expensive than conventional financing to compensate for the additional risk of the loan. Bridge loans typically have a higher interest rate, points and other costs that are amortized over a shorter period, and various fees and other "sweeteners" (such as equity participation by the lender in some loans).  The lender also may require cross-collateralization and a lower loan-to-value ratio.  An investor could expect a rate of 15-22% on such a loan.

Commercial Loan Investors

Commercial lenders usually weigh the type, quality, cash flow and equity of the hard-money  collateral very heavily.  They provide the borrower with the greatest flexibility but also the highest rates when compared with bank loans. Many commercial loans are bridge loans where a higher rate is a good trade off for the speed with which the loan is delivered and the flexibility of the finance terms behind it.

Investor Eligibility

Minimum net worth requirements should be considered by the private investors before considering investing as a lender/investor. Some states require eligibility before becoming a private investor and their individual parameters could be used as a guideline.  For instance, the state of California requires a net worth of $250,000 plus an annual income of $65,000.00.  

What CMI Offers

CMI Commercial Investment Company will collect the following necessary documents  for the investor’s “Due Diligence” review.  CMI will provide an easy to follow Loan Summary with all of the pertinent details.  Please review below:

Most Commercial Loans Will Need The Following To Make A Good Review:

    * A Signed CMI Commercial Investment Application
    * A Signed CMI’s Principal’s Team Contact Information
    * General Authorization
    * Credit Report
    * Articles of Corporation and Corporate Operating Agreement   
    * Resume for all Principals,
    * 1 – page Executive Summary
    * Business Plan or Pro Forma
    * 3 years Tax Returns (Personal & Business)
    * Business Quarterly Report & Current Profit & Loss (year-date)
    * Rent Roll (If necessary)
    * Environmental Report (if deemed necessary)
    * Appraisal
    * Copy of Principal’s Driver License or Passport
    * A conference call with the client, the private investor and a CMI Capital Group Director