Agent Alternatives Heartland Financial Services, LLC August 20, 2012.

Agent Alternatives

Agent Alternatives

Heartland Financial Services, LLC

August 20, 2012

Agent Alternatives

Proprietary and Confidential – Do Not Reproduce or Further Distribute

Agenda

Introduction

Funding Options

Qualification for Funding

The Funding Process

Loan Approval

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Jerry Bengtson

Jerry Bengtson, Principal, Heartland Financial Services, LLC

Over 30 years of banking experience and served on the Olathe Planning Commission, Economic Development Committee, Leadership Olathe, Olathe Chamber Board of Directors, numerous committees of the Kansas Bankers Association.

WORK EXPERIENCE:

Principal -Heartland Financial Services, LLC 2006-Present

Senior Sales Associate- Coldwell Banker Commercial Fishman & Company Realtors

Regional Manager- ISD Financial, LLC

President/CEO - Signature Bank KC 2004-2006

Senior Vice President - Security Savings Bank 2003-2004

Executive Vice President/Community Bank President-.Gold Bank 1997-2003

Executive Vice President/Chief Lending Officer-Fidelity State Bank 1980-1997

Vice President- Federal Land Bank Association 1977-1980

EDUCATION AND PROFESSIONAL TRAINING:

Fort Hays State University, Hays, Kansas, Bachelor of Science in Finance and Banking

Graduate and Post Graduate School of Banking, Boulder, Colorado

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Pre-Qualification for Funding

Must submit ALL of the below for initial review:

Business Plan,

Feasibility Study,

Projection Model,

Use of Funds,

Project must meet the financial pro forma requirements.

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Funding Options

Debt Project Funding

Equity Project Funding

Hard Money Lending

Conventional Financing

Specialized Funding

Merchant Processing

Merchant Cash Advance Program

Working Capital

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The Funding Process

Submission Prequalified Package. Business PlanFeasibility StudyProjection ModelUse of Funds

Lender approves initial package.

Client completes application and submits due diligence materials.

Client meets with Lender representatives to gain support and identify concerns.

Lender representatives prepare a project timeline and calculate funding requirements.

Approval is obtained and closing timelines is in process.

Referral fees paid at time of closing.

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Current Lending Market Conditions

25% of commercial businesses go up for sale each year.

About 20% of new businesses fail in the first year.

Only 44% of businesses make it through four years, according to the US Bureau

of Labor Statistics.

Only approximately 7% of commercial loans requests get approved now.

Without a well-packaged application and business plan package, the application

envelope and its contents go into the “circular file.”

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Secondary Market Lending

$5,000,000 - $100,000,000

Property/Asset Types (multifamily, retail, office, industrial, self-storage, hotel, student housing and manufactured housing)

Stabilized Class A & B Properties

Deal Types

First Mortgage

Term: 5-10 years based on 30 year Amortization

Debt Service Coverage Ratio: Minimum of 1.20x

Fixed Interest Rate

Loan to Value: Up to 75%

Non-recourse loan

jerry bengtson

Agent Alternatives


Project Financing

European Private Money Fund with offices in United States, Europe, Middle East, Asia Pacific, Kazakhstan and Australia

Lender has an excellent reputation and proven track record

$10,000,000 to $500,000,000

Five (5) to Seven (7) year interest only term loan; Lender will renew credit for an additional seven (7) years based on credit experience

Collateral- First Real Estate Mortgage on real and personal property and assignment of income

Non recourse loan

Closing within 60 to 90 days

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Next Steps

Any questions, please contact:

Primary:Jerry Bengtson(913) [email protected]

Agent Alternatives Heartland Financial Services, LLC August 20, 2012.

Documents

Transcript of Agent Alternatives Heartland Financial Services, LLC August 20, 2012.