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
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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.

With its small loan service, Remington Financial Group began acquisition funding to secure buying retail property in the Raleigh, North Carolina market. Because of their ability to acquire funding for very difficult deals, the principal engaged Remington Financial Group to obtain funding for their first commercial investment property.

The individual borrowing the funds had a low credit score, no experience, and little overall net worth. A substantial real estate property had a sales contract at a very competitive price, though. Remington Financial Group was able to settle the deal due to the properties strength and the borrower’s seemingly good insight throughout the financial stage of the process. As a result, Remington structured $960,000 senior and mezzanine financing which represented a 95 percent LTV when combined with the seller financing which occupied a third mortgage position. A combined rate of 7 was used to supply senior and mezzanine financing. 3/4 spread over a period of seven years as well as 25 year amortization.

Many banks offer commercial equity loans, yet these are not the only institutions that offer these. There are also investors that are willing to take a chance on a business and even other companies that will invest the funds in the form of a loan. This is especially the case when the loan is rock solid and that there is a good chance of this being the foundation for future help for the company.

What many companies fail to realize is that helping a business in the commercial equity loans can also help them if the business succeeds. This is free advertising for the loaning party and can also be a major motivation with the commercial equity loans, assuming that this is a choice that will take the business towards future success.

Owning the property that the business calls home is a major factor in not just the worth of the company, but also its stability. There is no landlord to throw them out for a better deal and there is no chance of the land being demolished for modernization. These are two factors that can be a debilitating blow to many companies that are well known for their location and are seeking to have the business in the same location for the long haul.

One other ploy that the commercial equity loans can help in is expansion. To have a second location is a challenge, but one that can pay off if the selection is well chosen and is not in the range of the first store. This can create a new field of clients and also help in the growth of the company overall. This is also a good way of exposing the company to possibly other cities and even other states. Some have used this as a launching pad for even going international, as they have been able to use the existing property as the base for the commercial equity loans so that there is little concern of its repayment.

There are many options that can come from commercial equity loans if the business has the vision and the direction to make them become more than inspiration. This is a major choice, but one that can make a chain of locations and something more than what was originally envisioned by the owner or those that have become part of the business.

Aside from the choice of starting a business, choosing the best of the commercial equity loans can be the biggest choice that you can make. This is a pivotal step in any business that is seeking to make a major stake in the industry and to prove that they are going to be around for the years to come.

There are many options that a company can choose in commercial equity loans. There are even more lenders that they can select as well. This is where the homework comes when they choose among the masses that have the world to offer. The selection of a commercial loan is choosing the best for the company and what will make for the best future that is in the outlook.

With all that can be offered in commercial equity loans, a number of companies will seek out the best company or bank for the loan. They never see the smaller brands that have just as a much to offer, if not more. This has resulted in one of the poor commercial equity loans that has resulted in the businesses struggle to survive or their eventual death.

More companies have made this mistake than should have. This has made for a lot of headaches and troubles that could have been avoided if the company was willing to shop around or even look for a second resource that could find the best deal for them. These stumbling blocks have been the reason why many companies will not consider expanding beyond renting and never getting to the size that they could be if they just took the chance.

The safe road is a consideration, yet one that has wound up making many companies trapped in the confines of what they can do in the course of their lives. Perhaps the guiltiest of this avenue are the family businesses that see that since the family is small in scope that the business should be as well. This not only denies the world of an incredible option in a business, but it also denies the business from being what it could.

The good selection of commercial equity loans can make all the difference of where a company will have their business, but is also the foundation of the future for a business that can expand and grow. Even a family business can see the worth of a success and the validity to commercial equity loans.