Shayne Fowler

The fraud policy of Remington Financial Group is designed to ensure that all staff, consultants, customers, financing intermediaries, and capital sources associated with our company possess the highest ethical standards possible. To accomplish this, we have established training programs and a diligently enforced anti-fraud policy we hope will become the accepted "Gold Standard" policy throughout our industry.

The purpose of this policy is to establish a realistic deterrent to inappropriate business behavior. We do this with controls and procedures designed to prevent, detect, investigate and report any questionable activity that may involve an intention to scam or commit fraud against the company, its staff, consultants, customers, financing intermediaries, or capital sources.

What is fraud? It is "the intentional false representation or concealment of material facts for the purpose of inducing another person or entity to act in such a way as to cause, or to potentially cause, injury or damage."

Fraud can and must be avoided. Anyone directly or indirectly engaged in inappropriate activity that harms anyone or any entity having dealings with Remington will be held accountable and be subject to prompt and appropriate disciplinary or legal action. At Remington, fraud is not an option. It simply will not be tolerated.

Prevention

To avoid and detect fraud, Remington Financial Group shall:

• Maintain a zero tolerance for fraud or other inappropriate activity.
• Hold staff, consultants and partners to the highest ethical standards.
• Train Remington associates to thoroughly understand our business process.
• Document the business processes so as to detect unauthorized variations.
• Promptly identify and report any fraudulent activities to the FBI or Federal, State or local governments as required by law.
• Continually review and update our fraud policies.
• Continually educate Remington stakeholders in our fraud commitment.

Responsibilities

At Remington, the Capital Markets, Business Development, and Structured Finance Groups are individually and collectively responsible for supporting the company's rigorous due diligence activities regarding all current and new clients, including owners, developers and financing intermediaries.

Traditional and Alternative Capital Sources

It is the responsibility of the Capital Markets Group to continually identify and "vet" new capital sources and to scrupulously perform due diligence on all current and future capital sources, such efforts to include, at a minimum:

• Researching each source, with background checks on the firm and its officers;
• Verifying through all available channels (e.g. Crittenden database) that the source is a legitimate lender or investor;
• Scrutinizing the Internet for past or current fraud issues;
• Conducting a thorough and satisfactory phone interview with the source before moving ahead in the process;
• Resolving questions with at least two principals, and independent third parties, if any questions remain unanswered;
• Reviewing such phone interviews with the Director of Capital Markets Group;
• Maintaining regular contact with capital sources, including periodic (annual) verification of non-fraudulent activity.
  

Owners, Developers and Financing Intermediaries

It is the responsibility of the Business Development Group to continually identify new client prospects and to help perform due diligence on all current and new clients, including owners, developers and financing intermediaries.

The company's Structured Finance Group, which has direct contact with clients during the transaction process, will likewise be responsible for supporting the company's due diligence efforts.

The fraud policy with respect to owners, developers and financing intermediaries will at a minimum include:

• Verifying the client and financing intermediaries "exist" through all available channels;
• Obtaining approval by management before a new client is accepted;
• Conducting a thorough and satisfactory phone interview with the client prospect before moving ahead in the process;
• Reviewing such phone interviews with a member of Remington management;
• Obtaining information about a client's officers and office location;
• Scrutinizing the Internet for past or current fraud issues involving the financing intermediary or client;
• Discussing with the client all questions that arise from documents provided;
• Discussing any lingering issues with independent third parties;
• Verifying information received with an on-site visit that may waived only with the approval of Remington management;
• Maintaining regular client contact, including periodic verification of non-fraudulent activity.

Hello I'm Shayne Fowler and welcome to my blog. I'm Managing Director and Chief Operations Officer at Remington Financial Group. In my blog I'll be discussing topics that come up with our clients from day-to-day that I hope will be interesting to you in your business.

I've had the pleasure of working with Andy Bogdanoff for 6 years. We share a passion for helping our clients secure financing even when all hope of a closing a transaction seems to be lost. Rejection by funding sources is never easy, and we take pride in our well-tuned process that deeply understands what our clients wish to accomplish and then finds the best way to get it done.

I'd like to thank Andy for his leadership and expertise in helping all of us come together with this common cause. We all celebrate our clients' successes.

In the 4Q09 I see the commercial real estate market flattening out. Awaiting the upturn, I know from day-to-day experience that "the best way to secure funding is through Remington", especially in the tough times. I'm dedicated to continuing to build our process and team to create more and more success for our clients.

Thank you. Shayne Fowler - Managing Director and COO, Remington Financial Group

The team at Remington Financial Group can help you revitalize an existing at-risk transaction with our Advisory Services in hospitality and other industry segments.

Remington assists with a comprehensive set of Financing Programs including origination, evaluation, transaction structuring, preparation and underwriting, negotiations and coordination of placement and closing processes. The combination of our expertise, financing process and unmatched access to capital provide the help many owners, developers and brokers need to get their transaction completed.

We have been successful in finding funding solution across the capital stack. Some transactions supported by Remington in hospitality include:

$13 MM - 130 Key, Construction Financing - NY

$4.5 MM - Hotel, Bankruptcy Reorganization Financing - MO

$12 MM - Hotel, Permanent Financing - VT

$58 MM - 2200 Key Hotel Portfolio, Debt / Mezzanine Financing - FL

$1 MM - Hotel Suites, Bridge Financing - NV

$48 MM - 196 Key Hotel / Office, Acquisition / Renovation Financing,
80% LTC - MD

$12.5 MM - Hotel, Permanent Financing - GA

$23.5 MM - 800 Key Hospitality Portfolio, Permanent Financing - PA

$62.6 MM - Hotel, Acquisition / Redevelopment Financing - IL

$17.6 MM - Hotel, Construction Financing - NJ

$7 MM - 2 Full-service Hotels, Acquisition Financing - GA

Remington Financial Group, Inc. - An experienced Firm

Since 1993, RFG has provided capital and financial services to business owners, real estate owners and developers/builders around the globe, with services including originating, evaluating, structuring, preparing financing request packages, and assisting with negotiation and coordination of placement and the closing process.

Focusing primarily on transactions from $1 million and up, RFG has employed a unique, highly disciplined transaction process that is different from many conventional approaches. Each transaction is customized to help our clients benefit from our distinctive brand of integrated financing. RFG's track record of completed transactions - including real estate, hotel/resort, land development, and corporate transactions - is proof of our distinctive approach.

RFG is versed in international deals, as well. Because of the demand for commercial financing and the incredible investment opportunities to be had, RFG has extended its growth, in particular, to Mexico. In addition to its Philadelphia and Arizona offices.

Remington Financial Group, Inc. - Focusing on Mexico Real Estate

There are many reasons Remington Financial Group (RFG) has extended its growth to Mexico. Among these is the proliferation of opportunities for potentially very rewarding long-term investment opportunity with limited risk. For comparable product types, cap rates in Mexico are approximately 200 to 400 basis points above U.S. cap rates. With its increased gross domestic product (GDP) per capita, vibrant economy, and the strength of the peso, investing in Mexico has never looked better. The country's foreign direct investment is at an all-time high. Additionally, Mexico's political climate is more open to investment than ever before. Changes in foreign investment laws, as well as the institutionalization of properties by U.S. Title Insurance companies, are two reasons for increased confidence among foreign investors. Institutions like AMB, Hines, ING, JP Morgan, ProLogis, and Prudential have already made considerable commitments in Mexican real estate.

U.S. buyers continue to be encouraged to buy Mexican real estate, since Mexican properties continue to be much cheaper than those in the U.S. Also, property taxes are very low in comparison to the U.S. and Canada. Homebuyers in San Diego, California or Phoenix, Arizona, for example, are more frequently being pushed south, where real estate is more affordable than it is stateside.

Real estate investment opportunities also abound surrounding tourism. Approximately 300,000 to 500,000 Americans and Canadians take extended vacations of over four months, which translates well for very profitable weekly rental properties. The allure of beachfront vistas, vacation homes, and retirement villas are among the many reasons that over 1.5 million Americans now own property in Mexico.

The property market is booming. Although the sale of single-family second homes continues to rise in the U.S., baby boomers are traveling and looking to spend their wealth in locales outside of their home country. As the richest generation in the history of the world, baby boomers are purchasing real estate abroad, with wealth from the economic boom of the ‘90s.

Remington Financial Group, Inc. - Financing Transactions in India

India is experiencing one of the strongest and enduring periods of economic growth and prosperity in the history of the financial markets. Their growth looks to continue unabated well into the next decade. Among the most attractive features for investing in India are numerous long-term investment opportunities that offer strong potential returns with limited downside risk. An influx of foreign capital has fueled a burgeoning middle class and increased land development.

Remington Financial Group, Inc. - Hard Money

Since 1993, Remington Financial Group, Inc. (RFG) has had a successful history of securing hard money capital and financial services to sophisticated real estate owners and developers nationwide. RFG specializes in hard money loans, a higher-risk loan, which is usually based on the quick-sale value of a property. Hard money loans are often issued for financially distressed properties that carry greater risks that most conventional banks are not willing to absorb. RFG issues hard money loans in cases where there is sufficient collateral and a promising business or financial plan. Securing financing for transactions starting at $1 million and moving upward, RFG offers an extensive network of private and public lending partners, dramatically improving successful close rates for borrowers in need of a fast closing loan. With a successful track record of closing hard money transactions, Remington delivers expertise and competitive transaction options, even in challenging market conditions. Hard money loans may be issued for any range of non-traditional properties or non-traditional borrowers - including property owners who may have missed a mortgage payment or real estate developers that are looking for immediate action. RFG is interested in securing financing for companies that operate in expanding market sectors, such as manufacturing, resource development and service providers. Remington will consider securing financing on a diverse variety of commercial properties, including mixed-use, apartment buildings, assisted care facilities, business investment capital, corporate loans, real estate, special purpose properties (such as car washes), construction loans, hotels, land development, retail, office or industrial properties.

Remington Financial Group, Inc. - What Hard Money is

A hard money loan is easily recognized by some distinguishing characteristics, most notably its ability to close quickly. Although a hard money loan typically carries a lower loan to value and more costly rates and fees, borrowers continually turn to this unique loan because most times it can move from start to close in 30 short days. Loans often times must close quickly for any number of reasons. Sometimes the timing is a requirement to take advantage of a good price on a commercial property. Other times borrowers must meet fast closing dates in order to avoid foreclosure. Regardless of the reason, hard money is a viable and valuable loan type. It's also important for brokers to understand that a typical hard money loan does not have a pre-payment penalty associated with it. So, if the borrower is in a position to repay the loan early the lender will not impose an extra fee.

Remington Financial Group, Inc. - When to Use Hard Money

Remington Financial Group is equipped to handle the expedited closings of 30 days or less, which makes it unique in the lending space. Our firm does it by preparing all of the necessary underwriting resources (attorneys, appraisers, etc.) to review and approve a loan very quickly. RFG employs a lower loan to value ratio than a traditional lender might, which allows the firm to recover its investment should the need arise. Also, Remington often times skips traditional underwriting steps, such as evaluating a borrower's credit rating or examining his experience level, as a means to progress the loan more quickly. We require a water tight appraisal of the property that ensures RFG can tolerate the high risk. Also, RFG will always require an appropriate exit strategy. If a borrower can not share how the loan will be repaid, in reasonable terms, we will not make the deal. Remington Financial Group has no interest in taking possession of a property and does not view foreclosure as a suitable exit strategy, but we can work with you to identify an appropriate strategy.