Christopher Hills, Managing Dir. Commercial Lending

Yield Maintenance is a prepayment penalty that, in the event the borrower pays off a loan before maturity, allows the lender to attain the same yield as if the borrower had made all scheduled mortgage payments until maturity. Yield maintenance premiums are designed to make lenders indifferent to an early prepayment by a borrower. On the flip side, it can mean that if a borrower currently has a 9.5% rate on its mortgage with 5 or 6 years to go until maturity, at this time the penalty could well be huge.

For example, let's assume a 15-year interest-only $1,000,000 mortgage at 7%. After the 5th year the borrower decides to refinance. The yield maintenance prepayment penalty would equal the difference between the current 7% rate and the yield that the bank would receive reinvesting the loan proceeds in a 10 year Treasury Note. (10 years being the remaining term of the loan).

To keep this example simple, let's say that at the time of prepayment, the 10 year Treasury note is 5%. The borrower would be required to pay the lender the present value of the 2% difference for each year over the loan's ten remaining years, or $200,000. This penalty will make the lender "whole" and insure that the lender will not experience an economic loss as a result of being paid prior to the loan's maturity. This same formula applies to amortizing loans, however it is much easier to illustrate with an interest-only loan.

Each lender will have a slight variation to this formula, however the above example conveys the spirit of the yield maintenance penalty. For more information go to www.in-visionloans.com

Cost segregation studies are one of the most valuable tax strategies available to owners of commercial real estate today. This increasingly popular phenomenon, offers facility owners the opportunity to defer taxes, reduce their overall current tax burden, and free up capital by improving their current cash flow. Virtually every taxpayer who owns, constructs, renovates, or acquires a commercial real estate structure stands to benefit from a cost segregation study.

Depreciation is a non-cash tax deduction which reduces federal income taxes. Commercial real estate owners often overlook a tax reduction opportunity by using simplistic methods to develop their depreciation schedules. Federal income tax preparation has become complex often involving CPAs, accountants and tax lawyers. However, even these experts do not have the depth of knowledge in all areas to affect all possible tax cuts. Commercial property owners seeking federal income tax relief should consult a cost segregation specialist. Cost segregation increases tax deductions by accurately depreciating real estate.

Cost segregation is not a tax shelter or tax evasion scheme. It is an IRS defined and guided tax reduction tool. Commercial property owners are often uncertain how to seek tax tips or tax advice. Tax preparation should include a team. Taxpayers with real estate investments will generate more tax deductions by including a cost segregation expert on their team.

The practice of Cost Segregation has been around for decades. However, recent changes to the law and court decisions have made it more beneficial. Ninety-percent of all commercial property investors are overpaying their federal income taxes, leaving a rather large untapped market for anyone able to offer these services. Though it has been around in its current form, since 1987; Cost Segregation was for some time, almost solely offered by Big 4 accounting firms and a handful of large real estate consulting companies, both of which tend to work with Fortune 1000 companies. With very few qualified practitioners for small to medium size taxpayers, the service was not cost effective. Within the last few years, however, Cost Segregation has become available, at a very reasonable cost, to smaller companies and individual property owners.

“Cost Segregation is a lucrative tax strategy that should be used in almost every major purchase of Commercial Real Estate."

-Wall Street Journal, June 2003

So give us a call and let us help with this strategy.

____________________________________________________________________________

We have Money to lend!!! We are in all 50 States and provide Great Service, are Honest and Show Professionalism.

The above information regarding Commercial Lending was provided by Christopher Hills, the Senior Vice President for In-Vision Financial Holdings, LLC. Chris can be reached via email at chris.hills@in-visionfinacial.com or by phone at 508-377-5872 x 704.

I am dedicated to helping you find the right financial solution for the purchase or refinance of your next commercial project

For Commercial lending nationwide see In-Vision Financial Holdings

----------------------------------------------------------------

To see the # 1 Commercial Correspondent lender in the US

In-Vision Financial Holdings

We are please to announce the creation of our new Non recourse Loans

Eligible Locations: Strong/Stable primary and secondary markets- No tertiary markets. 150,000+ population within 5 mile radius of the asset.
Eligible Transactions: Acquisition or refinance of existing stabilized income-producing properties - no earn-outs
Eligible Properties: Multi-tenant office, retail, warehouse, industrial, credit singe tenant, also select flagged hotels.
Properties that are Not Eligible : Non credit single tenant, restaurant/bar, church/school/day care, funeral home, dry cleaner; any automotive fuel/service/repair; bed & breakfast; co-ops, rest/nursing home, health care; raw land; single family homes; no properties with high vacancy, environmental contamination, needing substantial rehab or tenant fit-up.
Transaction Size: $5 million to $35 million
LTV [The lesser of as-is appraised value or purchase price] Up to 75% for multifamily office, retail, industrial/warehouse; Up to 70% for hotels.Amortization 30 years
DSC: 1.20x multifamily, office, retail and industrial/warehouse; 1.30x hotel.
Loan Term: 5 or 7 year term based on fixed rate period selected - balloon at end of loan term.
Non-Recourse: No personal recourse to principals for loan. Traditional "Bad Boy" carve-outs are required for waste, hazardous substances, etc.
Second mortgage: Not permitted
Prepayment Penalties 5 year term: Year 1&2- locked out; Year 3-2 points; Year 4-1 point; Year 5-open
7 year term: Y ears 1, 2 & 3 - locked out; Year 4-3 points; Year 5-2 points; Year 6-1 point; Year 7- open
Underwriting: Full documentation on borrower and property

____________________________________________________________________________

We have Money to lend!!! We are in all 50 States and provide Great Service, are Honest and Show Professionalism.

The above information regarding Commercial Lending was provided by Christopher Hills, the Senior Vice President for In-Vision Financial Holdings, LLC. Chris can be reached via email at chris.hills@in-visionfinacial.com or by phone at 508-377-5872 x 704.

I am dedicated to helping you find the right financial solution for the purchase or refinance of your next commercial project

For Commercial lending nationwide see In-Vision Financial Holdings

I just found this article on Bloomberg. Even the big time colleges with huge endowments

by Gillian Wee

Jan. 27 (Bloomberg) -- North American college endowments lost an average of 22.5 percent on investments from July to November and the declines probably will get bigger after returns on private equity and real estate are calculated.

Link to the rest of the article

____________________________________________________________________________

We have Money to lend!!! We are in all 50 States and provide Great Service, are Honest and Show Professionalism.

The above information regarding Commercial Lending was provided by Christopher Hills, the Senior Vice President for In-Vision Financial Holdings, LLC. Chris can be reached via email at chris.hills@in-visionfinacial.com or by phone at 508-377-5872 x 704.

I am dedicated to helping you find the right financial solution for the purchase or refinance of your next commercial project

For Commercial lending nationwide see In-Vision Financial Holdings

----------------------------------------------------------------

To see the # 1 Commercial Correspondent lender in the US

In-Vision Financial Holdings

·

· $ 10 Million to UNLIMITED!

· International as well

· Terms and structure will vary by deal

· Tier 1 & Tier 2 Developers Only

· All properties and projects considered, but the deal MUST be strong.

· No daisy chains accepted

· Must have access to the principals

Please keep in mind that there are more deals needing money than money to lend so only the better deals get funded. To find out if we can help you, just call us. It costs nothing to see if we can help you!

____________________________________________________________________________

We have Money to lend!!! We are in all 50 States and provide Great Service, are Honest and Show Professionalism.

The above information regarding Commercial Lending was provided by Christopher Hills, the Senior Vice President for In-Vision Financial Holdings, LLC. Chris can be reached via email at chris.hills@in-visionfinacial.com or by phone at 508-377-5872 x 704.

I am dedicated to helping you find the right financial solution for the purchase or refinance of your next commercial project

For Commercial lending nationwide see In-Vision Financial Holdings

----------------------------------------------------------------

To see the # 1 Commercial Correspondent lender in the US

In-Vision Financial Holdings