Introduction to Small Balance Commercial Lending

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SBA ? CONDUIT ? HARDMONEY ? CONSTRUCTION LENDING
Reginald Ollison VP of Business
Development Atlantic Equity Partners.
LLC. 919-876-1590 fax [phone] Email
address atlantic_at_usa.com
Presented Exclusively to
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AGENDA

• Why Were Talking About Commercial
• About US
• The Program Approach
• Program Features
• Property Types
• Target Borrowers
• Sample Deals
• Summary

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WHY WERE TALKING ABOUT COMMMERCIAL

• For years, the commercial property segment has
  been underserved or ignored by lenders.
• If the efficiencies of conventional and sub-prime
  lending were brought to this commercial segment,
  a tremendous opportunity would be created.
• Commercial loans made easy .
• Equipped with our innovative commercial mortgage
  program, you can expand markets and take full
  advantage of this opportunity.

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ABOUT US!

• Atlantic Equity Partners LLC is a
  Raleigh-based commercial real estate consultant
  providing fixed-rate, non-recourse and
  floating-rate recourse commercial real estate
  loans Atlantic Equity Partners LLC provides
  commercial mortgages secured by land or existing
  multifamily, retail, office, hotel, industrial,
  self-storage and senior care facilities. In
  addition, Atlantic Equity Partners LLC provides
  fixed and floating-rate recourse loans on other
  owner-occupied commercial assets,
• Atlantic Equity Partners LLC. provides loans
  through its Commercial Loan Program (CMP). The
  program is divided into two products the Small
  Loan Program for loans from 100,000 to 3
  million and the Large Loan Program for loans
  from 2 million to 100 million. Atlantic
  Equity Partners LLC is a service-oriented firm
  staffed with associates that are highly skilled
  in the processing and closing of conduit, SBA,
  Hard money loans for their clients. Conduit and
  SBA loans are inherently more complex and
  cumbersome for borrowers versus traditional
  financing and therefore Atlantic Equity Partners
  LLC has hired individuals that are experts in
  each part of the loan process, including
  originators that are intimately familiar with the
  loan products offered by Investor skilled in the
  underwriting of complex properties, often with
  poor information, and closing staff that can
  answer all the questions regarding the legal
  complexities of conduit , SBA and Hard Money
  loans and get loans closed.

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THE PROGRAM APPROACH

• Commercial Lending Based on Assets Base Lending
  Guidelines
• Faster Closings
• Predictable and consistent
• Quick up-front approvals (48-72 hours)
• Based on SBA, Conduit, Assets Base, Hard Money
• Less Complex
• Borrower Focus vs. Property Cash Flow
• Credit score
• Personal financial strength
• All income sources, not just property cash flow
• Assets and cash reserves
• More Qualified Buyers and Properties
• Qualified on DTI OR DSCR
• Lower Costs

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PROGRAM FEATURES

• 15, 20, 30 year fully amortized (No Balloons)
• Fixed and Adjustable rate 6, 3,5, 7 options
• Purchase, Rate Term Refi, Cashout Refi
  (unlimited)
• Owner occupied or investor
• 90 Financing available (10 Down)
• 95 CLTV with seller 2nd (5 Down)
• Individuals, LLCs, Corporations, Partnerships,
  Trusts
• No limit on loans to one borrower
• No depository relationship required
• Up-front Approvals
• State Income / State Assets

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PROPERTY TYPES

• Eligible Property Types
• Multifamily
• Office
• Warehouse/Self Storage
• Bed Breakfast
• Mixed-use
• Retail
• Light Industrial
• Qualifying Mobile Home Parks

• Special Purpose Properties
• Land
• Churches
• Gas Stations / Marinas
• Restaurants/Hotels
• Heavy Industrial
• Special Purpose Properties
• New Construction Subdivision
• Senior Living Projects

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BORROWERS CREDIT REQUIREMENTS

• Borrower with 600 middle score
• Reasonable debt relative to their income
• Willing and able to fully document or state
  income
• Non-Bank/Traditional Transaction -
• DTI Driven
• Executive Summary of Principles resumes
• Profit and loss statements
• Unserved Underserved
• Letter of Corporations

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Small Commercial Loans 100K to 1 Million

• Financing available for New Construction Projects
  65-75 Future Sale Value

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Commercial Loan from 2 Million to 100 million

• Commercial Loan 2 Million - 100 Million
• Loans Available Nationwide for multifamily,
  mixed-use, mobile home parks, office, retail,
  warehouse, self-storage, light industrial,
  single-tenant retail and etc.
• Competitive rates, call for current rate on your
  specific property
• Up to 30-year FULL AMORTIZATION  - more cash in
  your pocket less risk with a fully amortized
  loan!
• Up to 80 financing for all property types
• For construction purchases, refinances and
  cash-out refinances
• No seasoning requirement for cash-out refinancing
  
• No replacement reserve impounds
• Low Documentation (stated income) program
  available

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Healthcare Senior Living Retirement
Communities

• Developing a Plan of Finance
• Atlantic Equity Partners LLC provides
  financing for a variety of healthcare related
  institutions, including hospitals, senior living
  centers and retirement communities. We have
  experts who can assist your organization with a
  variety of financial services
• In developing an appropriate plan of finance,
  a number of strategic, operational and financial
  issues must be considered. Some issues are
  identifiable from the beginning others come into
  focus during the structuring and execution of the
  financing. Some issues to be addressed include
• Development of financial, operational and
  strategic goals (near-term and long-term).
• Identification of applicable debt financing
  options.
• Options may include taxable or tax-exempt debt
  (fixed, variable, synthetic) and/or equity.
• Evaluation of each option based on specific
  criteria Positioning the issue for successful
• distribution (institutional, retail, or both).
• Current and future credit-worthiness.
• Future debt capacity for additional projects and
  access to capital .
• Legal structure.
• Marketing and Distribution
• Our firm's early decision to specialize in
  healthcare has resulted in an unmatched sales and
  distribution network. Atlantic Equity Partners
  LLC. can market healthcare bonds of every credit
  rating to institutional purchasers, but also to
  individual investors directly through our retail
  network. Our ability to blend retail and
  institutional distribution into a unified
  marketing plan enables us to market healthcare
  securities at attractive interest rates in all
  market conditions.

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Atlantic Equity Partners Senior Facilities
Programs

• Products ServicesType of Properties
• Skilled Care Facilities
• Intermediate Care Nursing Home
• Sheltered Care or Personal Care Nursing
  Facilities
• Board and Care, Assisted Living Independent
  Living Facilities
• Psychiatric Facilities
• Rehab Hospitals
• Drug Alcohol Centers
• Apartments
• Other Special Purpose Facilities
• Types of Loans
• New Construction
• Refinance
• Refinance with Rehabilitation
• Refinance with Expansion
• Acquisition with Rehabilitation
• Exercise Purchase Option / Acquisition
• Straight Acquisition

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Checklist for Due Diligence Requirements
. Borrower / Developer InformationA. Borrowing
Entity 1. Organizational documentation for
Corporations a) Articles of
Incorporation b) Certificate of Incorporationc)
By-Lawsd) Corporation and Commission Letter of
Good Standinge) Partnership Agreement 2.
Organizational documentation for LLC
a) Limited Liability Certificationb) Operation
Agreementc) LLC Good Standing Certificate 3.
Board Resolution to Encumber 4. Interim
financial statementa) Profit and loss
statementb) Balance sheet 5. Two years complete
federal tax returns 6. List of all properties
owned or leased at present time 7. Three lender
references and three general business
references 8. Summary of experience within last
24 months B. Information on Principals
of Borrowing Entity1. Current personal financial
statements2. Two years complete federal tax
returns3. Credit Report Authorization form
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• II. Company Information A. Names addresses of
  each existing and proposed shareholders of
  company, or managers and members for LLCB.
  Confirmation of appointment of the directors and
  that none are disqualified from being directorC.
  Organizational chart including all stockholders
  employeesD. Name, mailing address, telephone
  contact person of auditors/ accountants of
  companyE. Authorized and issued share capital of
  company
• 1. Are all issued shares fully paid up?
  Details of any pledge, lien, charge or
• encumbrance affecting shares 2. Details
  of any signed contracts from current owners to
  sell their shares.
• F. Details of all bank accounts including all
  loans.G. Any guarantees for which company may be
  liableH. Details of any foreign exchange
  contracts company has or plans to enter intoI.
  List of following directors/employees, including
  resume for each and any contracts entered into
  with each director or key employee
• J. Details regarding directors/key employees
• 1. Terms and conditions of employment
  2. Benefits packages including pension or life
  insurance, sick pay, disability plans 3.
  Bonus plans, incentive plans and share options
  4. All long-term service or consultancy
  agreements 5. Any current obligations to pay
  compensation for loss of employment 6.
  Details of any trading or other arrangements
  7. Details of any agreement with trade unions
  8. Copies any major agreements between company
  and customers, suppliers,
• licensors and licensees 9.
  Schedule of insurances for company, including
  names and addresses of
• insurance advisors 10. Details of
  any investigation of company by any governmental
  body 11. Copies of leases or agreements
  between current tenants and landlord (if
• applicable 12. Details of any
  consents required for a change in control from
  any shareholder,
• creditor, lender, or other person
  13. An operating company
• a) Five year projection b)
  Opening balance sheet after receipt of funding

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CONSTRUCTION LENDING

• Acquisition Construction
• LOAN AMOUNT 1,000,000 and up.
• BORROWER Owner/ developer with track record.
• LOAN TERM 1 to 3 years, interest only.
• PREPAYMENTS Loans may be prepaid at any time,
  after a lockout period, with no prepayment
  penalties.
• INTEREST RATE Interest rates start at 10 12.
  Interest is paid monthly on the amount drawn
  based on the disbursement schedule. Allowances
  are made for prepayments of interest during the
  construction period.
• COLLATERAL First-mortgage on land and existing
  structures. Borrowers must personally guarantee
  all notes. On larger loans completion/construction
  bond by G.C. and/or Letter of Credit from
  investment grade institution.
• L-T-V RATIO Up to 65 of the As-Is Value1 by
  independent third party MAI appraisal, up to 75
  of approved infrastructure development costs, and
  up to 80 of approved vertical development costs.
• USE OF LOAN Proceeds may be used for
  construction costs, real estate acquisition, and
  related costs.
• PROCESSING Completed loan application, title
  report, appraisal, project overview, proposed
  building plans, cost projection for disbursement
  schedule, proof of funds for purchase of land,
  two years personal and corporate tax returns.
  Approvals within 24 hours, commitments within 48
  hours.
• EXIT FEE 2 to 8 of loan amount in lieu of
  equity.
• OTHER COSTS Application Fee 5,000 to 10,000,
  which is NON-REFUNDABLE if the Letter of Interest
  is in compliance with lenders Commitment.
• Commitment Fee 3 of Loan Amount, payable 1 to
  3 percent at commitment and the balance at
  closing.
• SUBMISSIONS Borrowers financial statements and
  tax returns for 2 years Brief property
  description Sources and use of proceeds
  statements Appraisal, if available.

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LAND LOANSAcquisition Development

• LOAN AMOUNT 500,000 and up.
• BORROWER Owner/developer with track record.
• LOAN TERM 1 to 3 years, interest only.
• PREPAYMENTS Loans may be prepaid at any time,
  after a lockout period, with no prepayment
  penalties.
• INTEREST RATE Interest rates start at 12.
  Interest is paid monthly on the amount drawn
  based on the disbursement schedule. Allowances
  are made for prepayments of interest during the
  construction period.
• COLLATERAL First-mortgage on land and existing
  structures. Borrower must personally guarantee
  all notes. On larger loans completion/construction
  bond by G.C. and/or Letter of Credit from
  investment grade institution.
• L-T-V RATIO Up to 50 of the As-Is Value1 by
  independent third party MAI appraisal and up to
  60 of approved infrastructure development costs.
• USE OF LOAN Proceeds may be used for
  construction costs, real estate acquisition, and
  closing costs.
• PROCESSING Completed loan application, title
  report, appraisal, project overview, proposed
  building plans, cost projection for disbursement
  schedule, proof of funds for purchase of land,
  two years personal and corporate tax returns.
  Approvals within 24 hours, commitments within 48
  hours, and closings in as little as 14 business
  days.
• OTHER COSTS Application Fee 10,000 to 25,000,
  which is NON-REFUNDABLE if the letter of interest
  is in compliance with lenders Commitment.
• Commitment Fee 3 of Loan Amount payable 1 to
  3 percent at commitment and the balance at
  closing.
• Exit Fee Up to 2 of loan amount in lieu of
  equity.
• SUBMISSIONS Brief property description Budget
  Sources and use of proceeds statements
  Appraisal, if available