About Me – FBC Funding – FBC Agents – Finance Agents

FBC Funding is Financing Broker Commercial Funding, and we are a commercial mortgage and business loan brokerage. We have been helping real estate investors and small business meet their financing goals since 2008. Yes, as the market crashed we left the big banks and started on our own.

As the Founder and Director of FBC Funding Louis Jeffries has been a Mortgage Banker since 1990. Working for various mortgage brokers and banks including Citibank, Bank of America, Wells Fargo and Washington Mutual. At Bank of America and Washington Mutual Louis not only originated residential mortgages but was able to work on commercial and business funding as well.

We FBC was founded, it was tough to get funding for commercial real estate and small businesses and there were a lot of fraudulent entities in this space. As a broker, FBC had to connect and find legitimate funding sources to work with. In 2011 FBC became affiliated with The Business Finance Store (the predecessor to the Finance Agents).

In 2016, after spending 5 years as a referral agent, Louis Became a member office of Finance Agents. As a member Office we are an independent marketing arm of the Finance Agents.

The Finance Agents is a lender and broker for business funding and some limited commercial funding. By aligning with them we are able to offer small businesses a wide range of business funding programs, while offering a wide range of commercial and investment real estate funding programs through FBC Funding.

FBC Agents have an affiliate arrangement with both FBC Funding and Finance Agents. They are able to refer investment real estate, commercial real estate and small business funding programs with ease.

The Finance Agents platform offers an simple way to refer, learn, sponsor other agents and get paid without actually working the loans. This is a great platform for professionals in related businesses that do not want to deviate from there main business, but would like to offer additional services for their clients.

For More Information email Louis directly at louisj@fbcfunding.com or louis@fbcagents

go to FBC Agents

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The Business Acquisition Bridge Loan

Business Acquisition Loan

Have you attempted to purchase a business and you had a decent down payment but, could not qualify for financing? Is your seller motivated, and would they allow financing based on business assets? We may have a financing option for you. The business acquisition bridge loan is not based on your credit and your collateral, it is based on the cash flow of the business you are buying. This bridge loan helps you to buy and operate your business today while you build your financial profile to qualify for conventional long term financing.

Business Acquisition Bridge Criteria

These are the main factors the underwriter will review in our Business Acquisition financing.

  1. Down Payment – You must have at least 20% of the acquisition costs as a down payment. The funds are not sourced or seasoned, but are simply verified prior to closing.
  2. Experience – You must have at least 5 years in related experience. For example, if you are looking to purchase a restaurant, you should have had 5 years in the management or ownership of a restaurant.
  3. Seller Second – The seller is willing to carry a note for up to 60% of the purchase price.
  4. Cash Flow – The Bridge loan is based on the cash flow of the business. In reality it is a revenue advance not a loan. In essence the current owner is acceting as partial payment for their business future earnings ofsaid business.

The Terms of Bridge Loan

The amount of the advance and term of the advance is based on the financial strength of the borrower and the cash flow of the business. Therefore, every business will not get the same amount for a similar purchase price and credit profile. This is a matching loan program, and the purchaser can qualify up to the amount of their down payment assuming the cash flow of the business can support the payment. This is short term financing. The term is usually for three to six months. At the end of that term, if you need to you may qualify for additional financing.Optimally the business will qualify for long term financing.

Who Could Benefit From The Business Acquisition Bridge Loan

This is a niche program for business owners who want to sell and the buyer can not qualify for conventional financing immediately. Therefore, there are many situations and people whom the bridge program will help. They include, but are not limited to:

  • Seller Ready to Retire
  • Seller Ready to Relocate
  • Seller to Family or Friends
  • Seller to Business Partner
  • Buyers with Down Payment, but not perfect credit.
  • Employees who wish to purchase the company.

These are a few situations where the Business Acquisition Bridge Loan Program would be an means to finance the sell a successful business.

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Stated Non Conforming Commercial and Investment Real Estate Loans

Non Conforming Real Estate Loans

Will lend from $100,000 to $5,000,000 on commercial and investment real estate nationwide at competitive rates and terms. If your project does not qualify for bank financing but you do not want hard money terms this could be the program for you.  Typically to qualify for bank financing there is a minimum loan requirement, a minimum credit score, a minimum debt service coverage ratio, as well as other minimum requirements that you just barely did not meet. With make sense underwriting you can qualify for good rates and terms. This lender deals with commercial mortgage brokers nationwide.

Minimum Loan Amount

The minimum loan amount is $50,000. For commercial real estate this is very aggressive. Most banks have a minimum loan amount of $250,000, $500,000 or even $1,000,000 or more. Many agency programs start at $2,000,000. Therefore, many borrowers looking for small cap commercial funding will have a hard time acquiring the financing they need. With the low minimum requirements this fund is able to finance many borrowers that are otherwise left out. This is a great option for commercial mortgage brokers to add to the programs they offer.

Minimum Credit Score

The minimum credit score is 580. There often is a misconception by borrowers in that they believe that if there credit score meets the minimum they qualify for financing. This is rarely true. Rarely! The minimum credit score is only used to deny a loan, rarely to approve a loan. What is most important is the actual credit profile. A client with a 720 credit score and only one tradeline for $300 that is as an authorized user is not more credit worthy than someone who has a 580 score with ten accounts all maxed out yet they have a perfect payment history for the last 2 years. With that said the the fundability of any project is based on the toatal package. A project where; the loan to value is low (the equity is high), the debt service coverage is high, the property is fully occupied and has been for years with long term leases, and the borrower has substantial experience owning and managing these property types will most assuradely be financed in this program, even if the borrowers score is below 600. Likewise, that same borrower with no management or ownership experience, maximum loan to value project with low debt service coverage will not qualify. Most Commercial mortgage brokers understand the opportunity for their clients with less than perfect credit.

Minimum Debt Service Coverage

1.25% debt service coverage ratio is pretty standard in the industry. This program adheres to that for projects where the borrower has low credit scores. But if the borrower has good credit and experience owning and or managing the property type, the property could be vacant with no immediate debt service coverage and the project could qualify for financing.

Stated Income

Many programs require the borrower to verify their income. These programs often have a “global” debt service coverage ratio. This means tha in addition to the property generating enough income to service its mortage and cover all debts associated with it plus make a profit, the lender will review the income and expenses of the borrower plus all of the prooperties they have financed. The total income and expenses of all the borrower owns will be analyzed to determine if there is suffifient income to cover all expenses plus make a profit. Because this is a steted income program the only thing the underwriter reviews is if the property has an acceptable debt service coverage ratio. No tax returns are required in most cases. In the event they are it is just for post closing loan commitment for the file. Mortgage brokers like this option.

Property Types

Most property types considered. Any properties owned or being purchased for business and investment purposes are considered. This includes non owner occupied residential one to four unit properties, multifamily, mixed use, single and multiuse properties. Hospitality, churches, and funeral homes also are acceptable. Excluded projects are land, fix and flips, gas stations and any property with environmental hazard.

Other Underwriting Considerations

There are many other items that go into an underwriting decision such as down payment amount, cash reserves, borrowers ownership and management experience and property considerations . The good thing about this program is that given the entire picture there is flexibility to make exceptions for compensating factors. An example of this was an individual who was co owner of a home with his son, that he let pay the mortgage but the son was regularly 30 days late and sometimes more. The borrower was in insurance executive who made over $200,000 annually plus had liquid assets that were greater than $3,000,000 and he was looking to borrow $1,000,000.00. We could easily see that the problem was the son as all other debt was paid as agreed. No brainer even with the low credit score.

Finally

If you are a commercial mortgage broker and have a project that you need stated income, non conforming commercial or investment real este financing that offers bankable terms for the un bankable borrower.

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