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