Remington Capital » Distressed Owner Recapitalization

Don’t Let Your Clients Become “Toast”

Travis — Fri, 11 Feb 2011 05:04:39 +0000

During the ‘CMBS Outlook’ session at the Mortgage Bankers Association’s Commercial Real Estate Finance and Multifamily Housing Convention & Expo, Jack Cohen, CEO of Cohen Financial, clearly explained the position that many borrowers are going to be in this year as banks begin to take losses on the loans that they had previously been extending.

Mr. Cohen’s is correct that some resolution has to be reached on the loans that banks have been extending for the last year before the market can fully “reset”. However, the only option for the borrower in his example isn’t just to pack it up and go home; recapitalization gives borrowers a chance to revitalize their projects and not lose the time and money they have already invested.

“My belief is that that the reset button can’t be hit until this industry takes its losses. The problem that exists is that the institutions are more capable to take their losses, both intellectually and economically. They’re creating revenues, they’re creating reserves, they’re writing stuff off.

“But the guy who has a $5 million shopping center and a $4 million loan, and who has $1 million in it and is going to lose $3 million or $4 million — that guy is toast.

“But it has to happen. This business is about risk. You are supposed to make a lot of money and lose a bunch of money. Guys who lose leave the game. Guys who win keep coming. So, people are going to have to take some losses. Until they do, we’re not done.”

-Jack Cohen, CEO of Cohen Financial

Cash-strapped landlords fail to evict tenants

Travis — Sun, 23 May 2010 09:43:51 +0000

Across the country, evictions are down. The question is asked, why? The obvious answer would be that tenants are paying their rent on-time. That answer would be wrong, in-fact quite the opposite. Less Tenants are paying their rent on time. So again, why are evictions down? The fact is, landlords can simply not afford the costs associated with an eviction. Most would rather have late rent, than none at all. Because the fact is, if they evict a tenant, chances are that the space/dwelling would remain empty for an extended period of time. Many Apartment buildings are filing for bankruptcy. Others are looking for Recapitalization financing. With conventional sources still not loaning funds, chances are scarce that their project will be relieved, unless they turn to alternative sources of capital.

Read about Phoenix’s landlord crisis here.

Increased delinquency rates prevent banks from issuing credit

Travis — Thu, 29 Apr 2010 08:16:11 +0000

Early estimates show that in the first quarter of 2010, commercial delinquency rates rose from 5.1% to 5.5%. Although 5.5% is well below the 8% delinquency in Q3 of 1991, this is still worrisome due to scarce credit and the overwhelming amount of maturing commercial loans. Current data shows that delinquency rates are only going to continue to rise into 2011. Remington offers distressed owner recapitalization programs, and has the experience and resources neccessary to secure financing when banks are not giving out funds.

To learn more about Remington’s Recapitalization options, please click here.

Investors Find Opportunities

Travis — Tue, 23 Mar 2010 22:25:52 +0000

As a recent article in DSNews.com http://www.dsnews.com/articles/investors-find-opportunities-in-distressed-commercial-real-estate-assets-2010-03-22 states, “Now is the time to invest.” With the access to capital, savvy investors have the opportunity to capitalize on the challenges holding the majority back – Remington doesn’t face this problem!
With access to capital, all across the capital stack, RFG has been structuring this type of distressed asset financing before the problem was upon us. Our dedicated structured finance division works diligently everyday, continually working viable solutions for each one of these troubled owners. As I have always believed, “Great rewards are achieved by the ones standing up and working with the conditions that we are faced with.”

Andy Bogdanoff of Remington Is Leading Efforts with Brokers to Recapitalize Distressed Owners

Travis — Sun, 07 Feb 2010 23:53:21 +0000

The Remington Chairman Andy Bogdanoff recently met with national experts to discuss breaking through the current commercial real estate liquidity crisis.

Andy told the group that he believes recapitalization with private capital sources can help many of the nation’s distressed real estate owners and developers. To assist distressed owners, he shared a new recapitalization program that bypasses traditional banking sources.

“The Distressed Owner Recapitalization Program is aimed directly at distressed owners and developers,” he said. “For those unable to refinance loans, we can tie together the expert capital advisory services of Remington with access to hundreds of active private funding sources ready, willing, and able to recapitalize troubled commercial real estate assets across the capital stack.”

There have been several recipients of funding from the new recapitalization program by Remington. One that I’ve worked on had Remington creatively restructuring the distressed owner’s business plan in such a way that the owner could successfully tap into our extensive network of private lenders and investors. Instead of having to sell or declare bankruptcy, the distressed owner secured through Remington an SBA 7(a) loan that allowed him to stay in the game.

“This is just one example of how creative financing expertise combined with access to private capital can help fill the potentially disastrous gap that is being created in the capital markets by the on-going liquidity crisis,” Andy Bogdanoff said.

If you’re a broker looking for fresh ideas to break through these challenging times, please give me a call and let’s discuss how we can help. Funding is currently available, and we welcome you to learn more about the program. Seminars are available 24/7 for you to learn more, too. Thank you! Travis Schmidt at Remington

Remington Offers Three Short Webinars that Provide Financing Lifelines

Travis — Sun, 17 Jan 2010 20:36:26 +0000

All of us in commercial real estate financing know it’s bad out there. We’re all being challenged to be thoughtful and creative to get transactions done. I’m proud of the deal flow that Remington has maintained, and our Capital Markets Group has dramatically expanded our access to active lending institutions – making the lives our brokers and their owners better every day.

I’m also proud to announce three short webinars that are available 24/7 that explains how you too can benefit from our recent successes. Here they are – feel free to connect any time and then please give me a call and let’s talk about how we can help you.

Distressed Owner Recapitalization Program from Remington

1) Distressed Owner Recapitalization Program intro video from Remington by Tyler Hufford https://remingtonfg.ilinc.com/register/zrwpcvp

2) Webinar on Recapitalizing Distressed Owners is now available online, by Capital Markets Director of Remington https://remingtonfg.ilinc.com/register/jyyfsw

3) Webinar on Marketing to Distressed Owners for the DOR Program is now available online, by Shayne Fowler of Remington https://remingtonfg.ilinc.com/register/xhcwzpv

Thank you! Travis Schmidt

Remington Provides a Way Out

Travis — Sun, 22 Nov 2009 20:15:02 +0000

There is extraordinarily bad news on the commercial real estate front. By most accounts things are getting worse before they’re getting better. Every day at Remington we see brokers who are working harder for less closings, and we are dedicated to helping them turn that situation around.

Consequently this week we are extending the Distressed Owner Recapitalization (DOR) Program to more brokers across the US and world. The early results are in, and we are helping brokers working on behalf of distressed owners and developers to close more transactions. We’re offering fresh access to commercial capital and creative restructuring techniques to make those transactions possible.

The Distressed Owner Recapitalization Program by Remington is being expanded this week with a broad introduction to more top brokers. I hope you will participate in our series of three webinars to learn more about the opportunity.

Since 1993, Remington has built a successful track record of closing the most challenging debt, mezzanine, and equity capital transactions. Our experienced associates specialize in developing and executing financial structures that turn problematic transactions into successful closings. Because of the company’s strong connections to hundreds of active funding sources across the capital stack, commercial real estate and general business clients of Remington have access to some of the industry’s best sources of commercial capital.

Thank you. Travis Schmidt – Remington

Recapitalization: First Step in Helping Distressed Owners

Travis — Sun, 25 Oct 2009 00:46:38 +0000

This week I was working with Andy Bogdanoff, Shayne Fowler, Joel Nathanson, Capital Markets Director and the team at Remington on supporting distressed owners with recapitalization services. It is personally satisfying to offer this to owners and developers through our brokers because it serves such a vital role in the U.S.’s economic recovery.

As I learned in detail from Andy this week, the commercial real estate industry is a disaster waiting to happen. With $1.2 trillion in commercial debt due to mature by 2013 and with U.S. banks in a deep liquidity crisis, real estate owners here and across the world are facing tough challenges.

Remington is doing something about it. To assist distressed owners and developers, we’re delivering an investor-driven recapitalization program that pulls from private and institutional banking sources of capital. We’re leveraging our best 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 institutional and reliable investors that are ready, willing, and able to recapitalize troubled commercial real estate assets.

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.

Let’s work together to get us back on the right track. Thank you. Travis Schmidt