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.

Thanks to our Chairman Andy Bogdanoff, Remington Financial Group is introducing the Distressed Owner Recapitalization (DOR) Program focusing on helping troubled owners and developers.

The commercial real estate industry is a mess. With $1.2 trillion in commercial debt maturing by 2013 and with U.S. banks in a deep liquidity crisis, real estate owners across the country are between a rock and a hard place.

We’re doing something about it. We are introducing an investor-driven recapitalization program that pulls capital from private and institutional banking sources. We’re leveraging our special access to commercial capital in order to support brokers and their clients in this tough situation.

The new program ties together the expert capital advisory services of Remington with a nationwide network of well-funded investors that are ready, willing, and able to recapitalize troubled commercial real estate assets.

Call our team for more information. If you’re a broker looking to more effectively support your client base, let’s get you into program so that you and your clients can benefit as soon as possible.

We look forward to working with you on this new program.

Andy Bogdanoff at the US-Asia Expo

Chairman Andy Bogdanoff of Remington Financial Group spoke on the investment panel at the US-Asia Expo September 17th with (left to right) Dee Harris (Arizona Angels), Andy, Terree Wasley (ASU-Technopolis and Invest Southwest) and Jay St. Clair (Windstone Capital).  The moderator was Chet S. Ross, District Director for SCORE-Arizona (far right).

The Expo primary sponsor was Hypercom and it was hosted by the Arizona International Growth Group.

Andy discussed investment opportunities in commercial real estate.  He also covered the outlook for the market in 2009 and 2010.  The current market – especially the high number of foreclosures in the Phoenix metropolitan area – is offering some excellent potential investment opportunities.  Remington helps obtain financing for projects – with the best access to commercial capital especially in these challenging times.

For more information:

www.remingtonfg.com

www.twitter.com/remingtonfg.com

480.905.3239

877.597.4458

“When it came to finding an expert in commercial capital access with the experience to have been through highs and lows of the market, we thought of Andy Bogdanoff,” said a spokesperson for the organizing committee. “We’re in a deep economic low, and so we look forward to hearing his opinion about what’s next across all levels of the capital stack.”

Bogdanoff’s expertise, creativity, and connections to investors make him respected and well known in the financing world. Therefore it’s no surprise that he was recognized as a key investment expert at the US-Asia Expo Arizona.

The Expo will be presented in cooperation with leading organizations for the exchange of ideas and the development of global business opportunities across 45 countries.

About Remington Financial Group

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.

What: US-Asia Expo Arizona, Investment Panel

When: Thursday, September 17^th

Where: Camelback Inn, 5402 East Lincoln Drive, Scottsdale, Arizona

For more information:

www.usasiaexpoarizona.com

www.remingtonfg.com

www.twitter.com/remingtonfg.com 

Contact: Doug Bruhnke, Growth Nation

doug@growthnation.com, (480) 459-7455

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

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.

Remington Financial Group competed with the borrower’s options and won based on the extremely low rate it was able to secure along with other favorable terms such as low reserves and short time frame to close. This was the 7th deal transaction by Remington over an extended period which was based on the reliability and confidence portrayed in Remington by the borrower. This loan was set up on a ten year term with a rate fixed at five percent on a thirty year amortization.thirty-five %.

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.

Aging properties had slipped into bankruptcy while losing their competitive edge to newer hotels that had been developed in the local market.  Another challenge with this project was that the property debt was approximately $100MM on a property only with $70MM.

Further contributing to its complexity was that considerable ecological difficulties existed. The court gave Remington Financial Group 30 days to turn in a resolution plan together with commitment for funding. When the borrower involved Remington Financial Group, they had fully planned to give the properties back to their lender, because after 18 months no one else had been able to get them a deal.

This asset was not wanted by the lender. Because of the relationship cultivated with the current lender, Remington was able to ask them to settle the senior financing for less. This caused a tax liability for the borrower that added finances to help cover expenses.

To fix environmental issues, a large amount of money was needed. Remington Financial Group was able to secure mezzanine financing for a very speculative business plan. That solved those needs and the need for additional capital to invest into the properties to help reposition and upgrade the portfolio and to make it competitive within its market.

Remington Financial Group sealed the market rates and gave a fifty eight million dollars finance which helped the owners to retain all of their ownership in emergence of bank cases and properties. The business was completed within 45 days.

The experienced team at Remington develops and executes financial structures that turn problematic transactions into closings.

This is where many commercial real estate loans are set up through financing firms that deal with the base mortgage and also provide a larger loan to the company. This is to help the company launch into the market from the building and not have to deal with additional loans to get the building up to specs. The huge advantage that the firms see is that this helps in the purchase of buildings that are appealing, but have areas that are in need of work. In simple terms, it makes a sale and also makes a commitment to the firm from a company that needs their services.

The commercial real estate loans can make the jump from a small office building into a complex possible. This is all based on what method the loan is obtained and what the overall criteria are for the loan itself. In many cases the commercial real estate loans are reviewed by representation from the company to ensure that it is fair for them and something that will be possible for them to meet.

For commercial real estate loans of this size, there is a large of money that is fronted and they are usually set up for a long period of time. In most cases they could be seen as a mortgage, except that they amounts of the payments are larger and the company is usually bound to pay it in a shorter timeframe than that of a residential property. Part of this is due to the expense that has been put into making this purchase a reality, and the other part is that a company can easily make more than most individuals or families can. This is also why commercial real estate loans are devoted to more than just the purchase of the property.