This presentation clearly outlines the types of commercial financing that are closing in today\'s market. It is both timely and enlightening.

1. WHAT’S CLOSING NOW? How to Close MORE Commercial Deals in 2010

3. Most banks aren’t really lending

4. Cap rates are higher

5. Gov’t loans are the easiest to get done

6. It is not about whether the borrower is good, it is about whether the loan can get done

8. Owner oCCUPIED

10. Does not mean where they live

11. Small businesses are increasing in strength

12. Gov’t (SBA) loans are EASIER than conventional

15. 620 min. score

16. 1.2 DSCR, personal must cash flow

17. Will go to 90% LTV, 10% must be from the borrower’s own seasoned funds, etc.

19. Generally going to be Available Only in larger MSA’s, 50,000 pop. and up

20. 650 min. Credit Score

21. Must Cash Flow at 1.2 unless Special Purpose Property, then generally 1.25 DSCR

22. 65% max LTV (local bank may go to 75%) (understand that with a conventional loan, the entire loan is at risk. On an SBA loan, 75-90% of the losses are guaranteed by the government so exposure is limited-hence, the bank is more aggressive)

24. 30 Yr. Terms for RE, 15 yrs. or useful life for Equip., 7 yrs. Working Cap.

25. Can’t be used to Relocate Jobs, C/O to Owners…but CAN do Const., Working Cap…

26. Need 10% Tangible Equity available after Closing to get Approved if existing Business, 20% if start-up

27. CAN be used for Energy Projects

28. Must be Rural-Populations <50,000

29. 1.2 DCR

31. FHA Program 223 for Apartments $2 million to $50 Million Loan Amt. Acquisition or Refinance 85% LTV for purchase/80% LTV for C/O refi 1.18 DSCR, 35 Year Terms, Fully Amortizing, Awesome Rates Non-Recourse 660 Credit Scores Downside is Time Frame (expect 4-6 months to close)

32. FHA PROGRAM 221(d)4 For construction and substantial rehab (at least 15% of the finished appraised value in repairs) $2 million to $50 Million 1.11 DSCR 90% LTV Up to 40 Yrs. Fully Amortizing, Non-Recourse, Great Rates 660 Credit Score Experience Critical Time Frame-6 Months Minimum

33. FHA- Healthcare- section 232/223 Skilled Nursing, Assisted Living Facilities, Treatment Centers, Aggregate Care-only for Purchase, Refinance, New Construction or Substantial Renovation of Healthcare Facilities Facility must have NO more than 25% of the units be Independent (own kitchen and bath facilities) Must Provide Continuous Oversight of Residents and Offer 3 Meals a Day 90% LTV 1.11 DSCR Up to 40 year, Fully Amortizing, Non-Recourse 660 scores Experience a Must, 3 Plus Years Minimum (FHA is the only source that has not adjusted to the declining values, everyone else has including FNMA. Keep this in mind.)

34. FNMA/FHLMC Apartments primarily 75% LTV is the Most Generally, 80% LTV in Extremely Strong Cases Only 680 Score 1.20 DSCR Possible BUT Everything Else Must be Rock Solid, 1.25 DSCR is Norm Need 9 Months of PITI in Reserves Generally Mixed Use OK as Long as Less Than 25% of Income from Commercial 90% Occupancy Needed (otherwise a bridge loan) C/O Possible to 65-70% on Limited Cases, all Else Must be Wicked Strong Must Have at least 3 Yrs. Landlord Experience Generally Non-Recourse (can get 10 year fixed, 30 year am, rates are good) Minimum L/A $1M, max $25M

36. Generally the Same Guidelines as FNMA

37. L/A $250K - $2M

40. C/O generally <60% LTV, must be Good reason, the Less c/o the better

41. L/A up to $5M, above that generally Wall Street

42. 1.25 is Min. DSCR, (prefer higher)

43. 650 Score is Min. (Ex. need 1.4 DSCR to compensate), (680 score pref.)

44. 85-90% Occupied (otherwise Bridge)(experience and reserves needed, must have, but guidelines vary widely on this depending on the source)

45. Special Purpose

47. 65% LTV max (most prefer 55%)

48. 90% Occupancy (in rental situations)

49. 660 Scores min. (prefer 680)(should have experience, reserves, etc…)

50. WALL STREET

51. Wall Street Gen. >$5M (no real max) Much Different. (deals can be broken up into pieces to combine first mortgages, mezzanine ((like a second)), equity) Everything needs to be Strong (nothing marginal) DCR >1.3 Generally need 1 yr. worth of Liquid Res. 5 yrs. Exp. Needed min. 680 Scores (really looking for 700) Special Use Properties carry much lower LTV’s Using a Combination of Equity, Debt, & Mezzanine, higher LTV’s are possible Looking for MAJOR Players (be careful of PFS statements that have huge net worth in real estate and almost no other liquid assets- that guy is not a player)

52. Hard Money/Bridge

54. 6 mos. Reserves preferred

55. Good Exit Strategy is KEY to Hard Money- what is the story and how will this get paid off in two years or so? (hint-“going to fix my credit then refinance” does not fly)

56. 620 min. Score (prefer higher)

58. 50% LTV max

59. Higher Rates -generally 15% or more

60. Must have Good Net Worth besides the Property

61. 620 Score min.

64. 660 min. Score

66. Strong Exp., Reserves, & Credit

67. Resi Const. Nearly Impossible(beware of lenders collecting large upfronts)

69. 75% max LTV Purchase

70. Must Cash Flow to Support

71. Increasing or Stable Revenue

72. Lenders are Still Aggressive for Const.There are many other products that you can do at Commercial Capital like our self directed IRA program, loan modification, factoring, merchant accounts receivables, etc. These programs help me get more deals done…which takes us to the next big point…..

73. Experience Matters!

75. Ability to Package/Work w/Client

76. Combine Unique Products to get Deal Done

78. If Deal Already Contains a Marginal and Another min. Guideline Exists, Proceed Very Carefully

80. Scores below 600

81. Cash-Out to Max(remember, underwriters can lose their jobs if too many loans they approve go bad, banks can be taken over if too many loans go bad-they look at the deal differently than you as a salesperson-the key is to be aggressive getting the deal in but screen hard like an underwriter-don’t underwrite, but make sure it hits the general guidelines)

82. Expectations

84. Aggressive Follow-Up

85. Build Up of Referral Source

86. Knowledge, Experience, Speed!CLOSINGS

87. 367 Athens Hwy, Suite 600 Loganville, GA 30052 Ph. 866.355.1244 www.topproducercommercial.com