10 Things Every Buyer Needs – To Close A Commercial Real Estate Loan

For nearly 30 years, I have represented borrowers and lenders in commercial real estate transactions. During this time it has become apparent that many Buyers do not have a clear understanding of what is required to document a commercial real estate loan. Unless the basics are understood, the likelihood of success in closing a commercial real estate transaction is greatly reduced.Throughout the process of negotiating the sale contract, all parties must keep their eye on what the Buyer’s lender will reasonably require as a condition to financing the purchase. This may not be what the parties want to focus on, but if this aspect of the transaction is ignored, the deal may not close at all.Sellers and their agents often express the attitude that the Buyer’s financing is the Buyer’s problem, not theirs. Perhaps, but facilitating Buyer’s financing should certainly be of interest to Sellers. How many sale transactions will close if the Buyer cannot get financing?This is not to suggest that Sellers should intrude upon the relationship between the Buyer and its lender, or become actively involved in obtaining Buyer’s financing. It does mean, however, that the Seller should understand what information concerning the property the Buyer will need to produce to its lender to obtain financing, and that Seller should be prepared to fully cooperate with the Buyer in all reasonable respects to produce that information.Basic Lending CriteriaLenders actively involved in making loans secured by commercial real estate typically have the same or similar documentation requirements. Unless these requirements can be satisfied, the loan will not be funded. If the loan is not funded, the sale transaction will not likely close.For Lenders, the object, always, is to establish two basic lending criteria:1. The ability of the borrower to repay the loan; and2. The ability of the lender to recover the full amount of the loan, including outstanding principal, accrued and unpaid interest, and all reasonable costs of collection, in the event the borrower fails to repay the loan.In nearly every loan of every type, these two lending criteria form the basis of the lender’s willingness to make the loan. Virtually all documentation in the loan closing process points to satisfying these two criteria. There are other legal requirements and regulations requiring lender compliance, but these two basic lending criteria represent, for the lender, what the loan closing process seeks to establish. They are also a primary focus of bank regulators, such as the FDIC, in verifying that the lender is following safe and sound lending practices.Few lenders engaged in commercial real estate lending are interested in making loans without collateral sufficient to assure repayment of the entire loan, including outstanding principal, accrued and unpaid interest, and all reasonable costs of collection, even where the borrower’s independent ability to repay is substantial. As we have seen time and again, changes in economic conditions, whether occurring from ordinary economic cycles, changes in technology, natural disasters, divorce, death, and even terrorist attack or war, can change the “ability” of a borrower to pay. Prudent lending practices require adequate security for any loan of substance.Documenting The LoanThere is no magic to documenting a commercial real estate loan. There are issues to resolve and documents to draft, but all can be managed efficiently and effectively if all parties to the transaction recognize the legitimate needs of the lender and plan the transaction and the contract requirements with a view toward satisfying those needs within the framework of the sale transaction.While the credit decision to issue a loan commitment focuses primarily on the ability of the borrower to repay the loan; the loan closing process focuses primarily on verification and documentation of the second stated criteria: confirmation that the collateral is sufficient to assure repayment of the loan, including all principal, accrued and unpaid interest, late fees, attorneys fees and other costs of collection, in the event the borrower fails to voluntarily repay the loan.With this in mind, most commercial real estate lenders approach commercial real estate closings by viewing themselves as potential “back-up buyers”. They are always testing their collateral position against the possibility that the Buyer/Borrower will default, with the lender being forced to foreclose and become the owner of the property. Their documentation requirements are designed to place the lender, after foreclosure, in as good a position as they would require at closing if they were a sophisticated direct buyer of the property; with the expectation that the lender may need to sell the property to a future sophisticated buyer to recover repayment of their loan.Top 10 Lender DeliveriesIn documenting a commercial real estate loan, the parties must recognize that virtually all commercial real estate lenders will require, among other things, delivery of the following “property documents”:1. Operating Statements for the past 3 years reflecting income and expenses of operations, including cost and timing of scheduled capital improvements;2. Certified copies of all Leases;3. A Certified Rent Roll as of the date of the Purchase Contract, and again as of a date within 2 or 3 days prior to closing;4. Estoppel Certificates signed by each tenant (or, typically, tenants representing 90% of the leased GLA in the project) dated within 15 days prior to closing;5. Subordination, Non-Disturbance and Attornment (“SNDA”) Agreements signed by each tenant;6. An ALTA lender’s title insurance policy with required endorsements, including, among others, an ALTA 3.1 Zoning Endorsement (modified to include parking), ALTA Endorsement No. 4 (Contiguity Endorsement insuring the mortgaged property constitutes a single parcel with no gaps or gores), and an Access Endorsement (insuring that the mortgaged property has access to public streets and ways for vehicular and pedestrian traffic);7. Copies of all documents of record which are to remain as encumbrances following closing, including all easements, restrictions, party wall agreements and other similar items;8. A current Plat of Survey prepared in accordance with 2011 Minimum Standard Detail for ALTA/ACSM Land Title Surveys, certified to the lender, Buyer and the title insurer;9. A satisfactory Environmental Site Assessment Report (Phase I Audit) and, if appropriate under the circumstances, a Phase 2 Audit, to demonstrate the property is not burdened with any recognized environmental defect; and10. A Site Improvements Inspection Report to evaluate the structural integrity of improvements.To be sure, there will be other requirements and deliveries the Buyer will be expected to satisfy as a condition to obtaining funding of the purchase money loan, but the items listed above are virtually universal. If the parties do not draft the purchase contract to accommodate timely delivery of these items to lender, the chances of closing the transaction are greatly reduced.Planning for Closing CostsThe closing process for commercial real estate transactions can be expensive. In addition to drafting the Purchase Contract to accommodate the documentary requirements of the Buyer’s lender, the Buyer and his advisors need to consider and adequately plan for the high cost of bringing a commercial real estate transaction from contract to closing.If competent Buyer’s counsel and competent lender’s counsel work together, each understanding what is required to be done to get the transaction closed, the cost of closing can be kept to a minimum, though it will undoubtedly remain substantial. It is not unusual for closing costs for a commercial real estate transaction with even typical closing issues to run thousands of dollars. Buyers must understand this and be prepared to accept it as a cost of doing business.Sophisticated Buyers understand the costs involved in documenting and closing a commercial real estate transaction and factor them into the overall cost of the transaction, just as they do costs such as the agreed upon purchase price, real estate brokerage commissions, loan brokerage fees, loan commitment fees and the like.Closing costs can constitute significant transaction expenses and must be factored into the Buyer’s business decision-making process in determining whether to proceed with a commercial real estate transaction. They are inescapable expenditures that add to Buyer’s cost of acquiring commercial real estate. They must be taken into account to determine the “true purchase price” to be paid by the Buyer to acquire any given project and to accurately calculate the anticipated yield on investment.Some closing costs may be shifted to the Seller through custom or effective contract negotiation, but many will unavoidably fall on the Buyer. These can easily total tens of thousands of dollars in an even moderately sized commercial real estate transaction in the $1,000,000 to $5,000,000 price range.Costs often overlooked, but ever present, include title insurance with required lender endorsements, an ALTA Survey, environmental audit(s), a Site Improvements Inspection Report and, somewhat surprisingly, Buyers attorney’s fees.For reasons that escape me, inexperienced Buyers of commercial real estate, and even some experienced Buyers, nearly always underestimate attorneys fees required in any given transaction. This is not because they are unpredictable, since the combined fees a Buyer must pay to its own attorney and to the Lender’s attorney typically aggregate around 1% of the Purchase Price. Perhaps it stems from wishful thinking associated with the customarily low attorneys fees charged by attorneys handling residential real estate closings. In reality, the level of sophistication and the amount of specialized work required to fully investigate and document a transaction for a Buyer of commercial real estate makes comparisons with residential real estate transactions inappropriate. Sophisticated commercial real estate investors understand this. Less sophisticated commercial real estate buyers must learn how to properly budget this cost.ConclusionConcluding negotiations for the sale/purchase of a substantial commercial real estate project is a thrilling experience but, until the transaction closes, it is only ink on paper. To get to closing, the contract must anticipate the documentation the Buyer will be required to deliver to its lender to obtain purchase money financing. The Buyer must also be aware of the substantial costs to be incurred in preparing for closing so that Buyer may reasonably plan its cash requirements for closing. With a clear understanding of what is required, and advanced planning to satisfy those requirements, the likelihood of successfully closing will be greatly enhanced.

Online Schools of Nursing – Getting a Nursing Degree

Earning a nursing degree from online schools of nursing is becoming more and more popular. The flexibility and versatility these online nursing schools offer poses a lot of benefits. Those looking to get a nursing degree can definitely take advantage of all the benefits online schools of nursing have to offer.When earning a nursing degree online, you basically complete the non-clinical courses because clinical and laboratory classes must be completed in person at a medical facility also operated by the online school of nursing. It is important to know that there are no online nursing programs that allow you to fully complete the degree online. Nevertheless, it is one good way to become a registered or practical nurse.To find online nursing schools such as online practical nursing schools, you need to do a little research online. There are many websites offering online nursing courses. In fact, even online nursing PHD programs are available on the Internet. On Google or even on other reliable search engines, type the keywords that will help you find the online nursing schools you would like to attend. At the very least, you can type the words “online nursing degree” or “nursing degree online”. You may also type the name of your city or state that you would like your nursing program to be in. The search engine will show you results with links to many online nursing schools. Check out some of these sites to see in detail what they offer and find out if their offerings match what you are looking for. There are some things that you consider when choosing the online school to attend to.First and foremost, find out if the nursing program allows you to work at your own pace or the one that follows the school’s schedule. A program that allows you to work at your own pace will allow you to finish or complete the work at a schedule or pace that suits you. However, there are many nursing programs structured like a traditional school or college. You should also find out the date when you can start. Some online schools for nursing have rolling enrollment which means that you can start at any date you prefer. Others designate a starting date.You should also check if the online school has an academic advisor. It is a good idea to settle for one that assigns an academic advisor for each student because the advisor will help and work with students closely to help in planning out the course of study. An academic advisor also helps students keep on tract, connects with the students online, and coordinates with the students’ clinical classes.You should also check the costs of the nursing program because not all schools have the same charges. A thorough search of programs will help you land on the most affordable yet right online school for you. It is also good if you can find out if the school offers financial assistance. Many online nursing programs offer assistance and it is a good idea to take advantage of this financial help.Once you have completed your research, you can narrow your choices of online schools of nursing down to a few until you land on the best one.

Top MLM Software Companies to Watch Out for in 2018

MLM software is integral to any MLM business since it holds the base of the business and a right MLM software that is highly accurate, fast and perfect to fulfil your expectations is a must-have. It is essential that we select the right developer for meeting our software requirements, after all, there is no room for any mistakes in your business. Here we are listing Top MLM Software Developing Companies in the market complete with their rankings and employee strength to help you make the right choice. There are no specific criteria to rank the developers, though the features provided, options for customisation and the available add-ons can be taken into account to rank them.
I took these parameters into consideration while ranking the MLM Software Developing Companies.I prepared this list based on internet searches, magazine references and mouth to mouth information.1. Infinite MLM Software by IOSSIOSS is the pioneers of MLM software development in India with more than a decade of experience in developing such software. Their software Infinite MLM Software has the largest number of MLM plans integrated to it. The payment options are highly safe and reliable and numerous add-ons are provided which can be easily integrated with the software. This includes e-pin, e-wallet, CRM integration, Bitcoin Promotion and Cryptocurrency development. The customers also have an option to customise the software as per their needs and compensation and payout schemes. There are options to handle multiple languages and currencies.Alexa Rank: 383,3892.MLM SoftworksMLM Software developed by MLM Softworks, which is an Indian Based company claims to have a solution to manage, control and organize an MLM business. Built on Laravel, the software is highly responsive and allows the admin to configure custom pay plan and compensation rules. Necessary features like social media integration, managing distributors & downline members, handling MLM leads, processing commissions & payout, enable or disable dynamic compression, track sales volume, profitability statistics, etc have been included in the software.Alexa Rank: 3,048,0513. AIS TECHNOLABSThe company offers 100% customisable script, which is common in most of the MLM software in the market these days. The Content Management System is a highly beneficial tool for the users without much technical knowledge to easily update the contents of their business website. CRM feature helps in business promotion by generating automated responses to queries. The software offers multi-engine URL to help check purchase volume, Rank and Leg count. The price is moderate and the company offers an array of services related to MLM business like website development, Mobile application development etc. The company offers lifetime support and technical consultancy for any type of problem associated with the software.Alexa Rank: 564,3154. Awapal MLMThe developers have described Awapal MLM as ‘ Software with great features given to address diverse business needs’. In addition to the basic features mentioned above, the software has a CRM system put in place so that the distributors can send bulk emails and automated responses to their customers. The software supports multiple languages and even has a currency converter added on eyeing the possibility of overseas business as well. E-Voucher Generator has been introduced and there is an option for easy bulk import/export of data. Fund transfer to various accounts is extremely easy with a sound e-wallet system in place. There are facilities to generate different kinds of reports and inventory management is not an uphill task anymore with Awapal MLM.Alexa Rank: 700,5675. VentaForce by SankalpVentaforce claims to have incorporated more than 150 features in it. Developed by an Indian company Sankalp which has been in the business for more than 10 years, the software incorporates all the basic features expected of an MLM software along with additional features like supporting multiple languages, multi-currency, tax management, e-commerce integration, commission management, multi vendors and much more. All popularly adopted MLM plans are incorporated in the software. There are pre-integrated payment gateways to enable safe and secure transactions. Along with Admin and Member module, the multi-level marketing software provides various add-on modules with different features to run the business effortlessly.Alexa Rank: 890,6866. ARM MLMThis MLM software is highly responsive to anything from a PC to a mobile phone and has got all major business plans merged into it along with the entire set of calculations of commissions and payout schemes. An added feature is the Content Management System(CMS) which allows the user to update the product info and other contents on the website without much knowledge of HTML. Genealogy is represented in graphical form and the software supports multiple languages too. E-pin Generator is provided to reduce the chance of fraudery and e-wallet facility is added to ensure quick and easy transactions.Alexa Rank: 982,7197. Multisoft CorporationMarket Power Pro by Multisoft Corporation is third on the list of top ten MLM companies. The software is jam-packed with a lot of essential features like real-time genealogy, website management tools, auto-billing options and much more! The company is based in Nevada, USA and has been in business for more than 30 years. Competitive pricing and security features are commendable for this MLM software. Almost all types of MLM business plans and its compensation schemes have been incorporated into this software. The admin can manage all users, both Distributors and Customers, from One Central Cloud-Based System which helps in easy management of the entire business.Alexa Rank: 1,766,6968. EifaSoft TechnologiesEifaSoft MLM software by EifaSoft Technologies is based in India and has managed to fairly meet the expectations from an MLM software. Eifasoft Technologies claims EifaSoft MLM to be secure, reliable, user-friendly and Web Based MLM Software to provides easy tracking of customers, various kinds of reports regarding sales, revenue, analytical and pictorial presentation in a genealogical manner of MLM customers. The software has a responsive design so it can be used in any designs without trouble. All the basic utilities like E-Pin generator, E-commerce, SMS and E-Wallet has been integrated with the software. The only major drawback is that the company does not offer a free trial of the software.Alexa Rank: 1,976,2119. IMatrix SoftwareWith an experience of more than two decades in developing MLM software, IMatrix is an American company which has quite an impressive clientele to boast of. The software is packed with the features you would expect from a leading software provider, and allows the user to view their downline in graphical format, determine their current qualifications and current earnings. The software is practically easy to use and visually appealing. This software too can handle multiple currencies, payment options and multiple languages. Members can access their information in real-time anywhere, anytime, from any supported device.Alexa Rank:7,589,45110. AJ Matrix MLM SoftwareAJ Matrix is a PHP based MLM software that is developed by a British based company AJ Matrix. The software has all the features expected of an MLM software. The software accommodates all the MLM business plans in the market and integrates E-Pin Management along with it. There are facilities for customisation of the software as per client’s needs. The company promises their customers 24×7 support over the phone and email. The software can have been equipped to accommodate spillovers automatically and can calculate the bonus and commissions.Alexa Rank: 13,282,170The links to the websites of the top four companies are listed below. Do check them out!1. Infinite MLM Software by IOSS – https://infinitemlmsoftware.com/2.MLM Softworks – http://www.mlmsoftworks.com/3. AIS TECHNOLABS – https://www.aistechnolabs.com/mlm-software/4. Awapal MLM – https://awapal.com/There are MLM software companies mushrooming across the world every day. It is a tough choice, we agree, especially choosing something that can decide the fate of your business. Though there are endless choices in the market, we have managed to pick out some based on the overall functionality and prices as our top priority. Hope this list helps in making your final choice! Cheers to a successful MLM business career.