Remington Financial Group

Remington Financial Group offers a variety of options to access commercial capital. We are a strategic partner with an long track record of success, especially for projects previously not funded from conventional sources.

Debt Financing

Since our founding in 1993, Remington has been advising clients on the use of leading-edge financing strategies to help secure short- and long-term debt. We have extensive expertise in distressed debt transactions, bridge loans, and permanent loans, as well as forward takeout and standby commitments. The special access of the team at Remington to domestic and international private and institutional capital sources is a source of unique differentiation in the industry.

Mezzanine Lending

Remington offers a comprehensive program that accesses mezzanine and preferred equity capital providers nationwide. The program organizes available capital according to the providers’ preferred property type, geography, leverage level, term, type of security required, and other differentiating factors.

Equity Lending

Clients in need of a joint venture partner to meet required capital needs will find that Remington provides significant added value by advising on all components of a project’s capital structure. Our approach adds value to equity financing in a variety of ways.

Since 1993 Remington Financial Group has built a successful track record of closing the most challenging debt, mezzanine, and equity capital transactions. Our clients receive the best access to commercial capital. We have strong connections to hundreds of actively-lending funding sources across the capital stack. The experienced team at Remington develops and executes financial structures that turn problematic transactions into closings.

Remington Financial Group has:

1. The most effective and connected Capital Markets Group that finds new alternatives to traditional bank financing.
2. Global capabilities, with minimum loan amounts of $500,000 in the US and $5,000,000 for international transactions.
3. An experienced and innovative advisory service team with the highest integrity and your best access to commercial capital.

Contact us today to find out how Remington Financial Group can make your next transaction a success.

We’re your best access to commercial capital.
480.905.3239
apply@remingtonfg.com
info@remingtonfg.com
www.remingtonfg.com

For newer brokers, it’s wise to recognize the limits and payoffs in commercial lending.

Andy Bogdanoff, Chairman and CEO, Remington Financial Group

As published in Scotsman Guide’s Commercial Edition, July 2008.

The sea of potential new commercial brokers is as wide as it is deep. Some want to learn more about the industry. Others might have dipped a toe into the commercial waters and are considering moving into the business full-time.

If you fit into one of these groups, you would be well-advised to go in with your eyes open. Many beginning brokers do not know the nuances of commercial lending but must learn them to make informed decisions.

For the right candidates, commercial lending is a perfect fit with tremendous rewards. But for the wrong candidate, the risks, stress and commitment to customers might break the camel’s back.

Examining cautionary and positive aspects of being a commercial broker can help you understand the unique position you’re in—and help you understand how to proceed.

Challenges

The news about salaries in commercial lending is that, for the most part, there are none. Often, commercial lending is a straight-commission industry, where there are no draws and no benefits offered. It can be a radical life change for people unfamiliar with a commission structure.

It’s common for beginning commercial brokers not to bring home one dime in the first two to three months on the job. It’s generally recommended that people who can stomach the uncertainty of the commission structure should wait to enter the business until they have built a 60- to 90-day war chest to cover their personal financial obligations. By doing so, they can ensure that their personal or family situations are not adversely affected in the time it takes to learn the business and to build a solid lead base.

A good number of commercial brokers also work as independent contractors. For the most part, commercial brokers set their own schedules and take on only the business that they want.

While this offers tremendous flexibility, managing your own time can be a pitfall for the wrong candidate. There is a tremendous amount of self-discipline required to be your own boss.

Just because no one tells you when to be at work or how many hours to be there doesn’t mean that you don’t have to do anything. Remember, you are likely not pulling down a salary. Simply filling your seat will not pay the bills. Most commercial brokers are in a position where they must find the discipline to uncover leads, work them, create relationships with investment-banking firms and maintain stellar customer service for clients.

These added responsibilities can be stressful. Commercial lending is a 24-7 job that includes demanding clients who expect you to be available to them all the time, at any time. It can affect your home life, with frequent interruptions outside of regular working hours. Financial dealings also are emotional, particularly for the borrower, which often adds to brokers’ stress.

To succeed in this business, you have to have a thick skin. You must enjoy the work enough to offer additional help to clients who become upset with you.

Although it’s tempting to play tough, realize your clients ultimately are paying your bills. It would be wise to treat them well and to work hard for them.

The plus side

It’s always wise to balance the challenges facing commercial brokers with the positive aspects of the job.

The biggest upside of commercial lending is in the financial rewards that a good broker can generate. The commercial lending industry is not like the residential side, with its pronounced dips and peaks. Even as the housing market slipped, commercial lending continued in relative stability—meaning that the vine is still ripe for the picking with deals that need funding. Brokers who have the right business acumen, the right contacts and solid investment-banking partners can create a significant revenue stream.

Another advantage is that for the most part, being a commercial mortgage broker does not require a license, specific education or particular work history. Granted, many commercial brokers do have advanced degrees, well-regarded résumés and years of experience. But many others have taken advantage of the fact that a nose for the business, strong sales tactics, people skills and a stellar work ethic can be building blocks for a successful career with commercial loans.

While other positions in the commercial lending industry might require a particular formal education—an underwriting or analyst position, perhaps—a broker’s personality, passion for the industry and keen ability to look for good business deals can lead to industry success.

It’s important to note, however, that even though brokers might enter the field without a specific education, new market entrants should look for opportunities for on-the-job training.

As a new or questioning commercial broker, it’s wise to know what type of business lifestyle you desire before you get into commercial lending full-time. Successful commercial brokers can make a tremendous living while enjoying a flexibility other occupations can’t provide. But they have to understand that stress, demanding clients and a lack of a stable paycheck often are part of the bargain.

Either way, take the time to know the business and to know yourself before you make the leap.

Andy Bogdanoff has more than 35 years’ commercial lending experience and founded Remington Financial Group in 1993. Bogdanoff has served as the company’s president since its inception, and, under his leadership, RFG has closed billions of dollars in transactions. Andy can be reached at andy@remingtonfg.com. For more information on Remington Financial Group, please visit www.Remingtonfg.com

http://www.scotsmanguide.com/default.asp?ID=3022

Since 1993 Remington Financial Group has built a successful track record of closing the most challenging debt, mezzanine, and equity capital transactions. Our clients receive the best access to commercial capital. We have strong connections to hundreds of actively-lending funding sources across the capital stack. The experienced team at Remington develops and executes financial structures that turn problematic transactions into closings.

Some companies have a need for quick liquid funds and have a fairly quick turnaround in how the funds come back. This is where hard money commercial loans can have a huge bonus in how these business deals with the situation at hand.

One good example of a business that thrives with hard money commercial loans are those that gobbles up the smaller businesses and break them up for them assets. This is a predatorily business, but one that has a fast turnaround in the funds that it obtains in the loan and how it can replenish the funds for repayment. In a situation like this, these are small companies that have components that are worth more than the overall whole. There are some companies that focus on this or in flipping the assets of other companies.

Another business that can excel with hard money commercial loans is in the technology field. As this is a field that is rapidly growing, the huge infusion of funds can be used in the development of something that can cause a huge splash in the market. This splash results in funds being generated and the repayment of the loan. This can help a company that sees a window of opportunity in the market or in their niche. This window can generate a huge amount of funds if they are the first to strike and if they strike right.

Perhaps the first question any should ask before considering hard money commercial loans is if they are worth the fees and the timeframe that is expected for the repayment. Many companies would deem this to be a folly as there is a large volume of funds offered, but also a large volume to be paid. The pause for thought is also due to the collateral that is usually required for a loan of this magnitude. This has made this a loan that only large companies or those that can have a fast turnaround consider.

As with any loans, hard money commercial loans require the business to take the time to do the needed homework, or to have another company do the middle work for them. This can solve a lot of heartache and also ensure that the company will thrive with or without the loan. These are considerations that can make or break a company that is striving to live.

Companies can vary from situation to situation. There are some that are ready to launch to something great and need to have the base foundation to make this a reality. This is where they can use their assets for hard money commercial loans and make the leap a reality. These are usually short-term loans that must be paid back in one to three years.

Typically, hard money commercial loans are of a higher volume loan that can make a huge impact if the business has a solid direction in where they are going. Some have used this course of loan to make a massive leap in their industry with some new breakthrough or with the base brand image that they have which may be stellar. Others have just had the guts to do what so many others have lacked. In the end, hard money commercial loans are a high volume loan that has a prompt pay back standard in duration when compared to some of the loans that a company can obtain.

The perk with hard money commercial loans is that they also offer a fairly fast response to the company. They usually have a fair interest rate considering what is being offered to the company and in the duration. The one drawback to these is that they also want collateral of some sort, usually in the form of property that can be lost if the loan goes default. This is where a company has to be certain that the large volume of funds will do them good as the return can kill them if it doesn’t.

The hard money commercial loans do pose a good level of risk and are avoided by some companies that are uncertain with the direction that they are taking. This is where a company that is bleeding edge in technology or in their respective industry can do a ton of good with this type of loan, but few others. This is also usually due to the fees that are involved due to the high volume (typically these are based on a percentage basis).

For a company that is struggling to be more than what they were, this could be the possible solution. That is if they have the assets for the collateral and also are willing to take such a serious risk in the health of their company. Some simply see the risk as too great.