CCIMs tap into capital power at Reston, Va., meeting

"Capitalism without capital is nothing but an `ism.' " That's what keynote speaker Jack Kemp -- quoting Jessee Jackson -- told the approximately 500 attendees at the 1996 CCIM National Conference, held this June in Reston, Va., and co-sponsored by NATIONAL REAL ESTATE INVESTOR.

Article Tools

Latest News

More Latest News

"Capital Power" was the theme of this year's meeting of the Commercial Investment Real Estate Institute, which confers the Certified Commercial Investment Member (CCIM) designation. The program was designed to put attendees in touch with that power.

Two-hour marketing and business development sessions allowing CCIMs the opportunity to share business opportunities started each day's events.

So important is technology to conducting business now that a full day was devoted to "How to Double Your Income with Today's Technology." Panelists talked about how they use technology to find and obtain business and market properties, and one speaker admitted "If I lose my laptop, I would be out of business."

You might say that "capitol power" and "capital power" collided when luncheon speaker Rep. Mark Foley, R.-Fla., a broker before entering public life, received his CCIM pin, having passed the exam earlier in the week. He was one of 218 professionals receiving their designations during the meeting.

Knowing which financial tools are available, who needs them and how to access them are essential to the real estate industry. To this end, "Commercial Real Estate Finance: Understanding its Capital Power" gave helpful hints of ways commercial real estate practitioners can work with lenders to ensure successful transactions.

Panelist John Levy of John B. Levy & Co., Richmond (and NREI's Financing Today columnist) talked about two financial tools that can help close stalled deals: bridge loans and circling a rate.

A bridge loan is useful for "the fish that almost got away," Levy said. This loan to finance an acquisition helps facilitate a closing, can be done quickly, will preserve a broker's commission and "draws attention that you bring real value," he added, saying that lenders like Heller, GE Capital and Nomura Direct provide this type of short-term money.

Circling a rate is helpful when rates start moving up, Levy said, "when a lender likes a deal but won't fix a rate until loan committee." This tool, that binds a borrower and lender to a fixed rate and could save a borrower 1/2%, is available from lenders such as Prudential, TIAA and Northwest Mutual.

Anthony Washington of AMI Capital Inc. in Bethesda, Md., talked about DUS lending as a financing tool. As one of 25 delegated underwriting and servicing partners with Fannie Mae, Washington said, AMI placed $272 million in 1995.

Reilly Shaughnessy, with First Union National Bank in McLean, Va., talked about banks as lenders for real estate. "Regulators take a coldhearted look at real estate loans," he said. "The underwriting process is cold and steely-eyed." Continuity and integrity of cashflows are important to banks, and Shaughnessy said First Union won't look at loans under $3 million, but will go up to $60 million to $70 million. These credit lenders look at the project as well as the sponsor. Other banks currently lending for commercial real estate are Wells Fargo and Mellon.

Nancy Davis of The Money Store Investment Corp. in Sacramento, Calif., explained niche loan products, especially SBA loans. In what Davis described as "soup to nuts" financing, "one loan can include real estate as well as inventory and equipment."

"Underwriting has slipped every year since '91," Levy said. "Lenders are more reasonable and more interested in doing deals."

Transitioning from a transaction-driven to a fee-based career was covered in "An Alternative to Commissions: Your Road Map to $ucce$$." And rounding out the program were two sessions on project development. Trends in adaptive reuse and military base closings were covered, and case studies for industrial, office and mixed-use projects were presented, providing insight into the future of development projects.


Acceptable Use Policy
blog comments powered by Disqus

Photo Galleries

New York's Star Deals

http://nreionline.com/images/nyc_big_deals_homepage_thumb.jpgThe city that never sleeps is also the city that never stops growing, not even in the midst of recession. And deals, both bold and unprecedented, continue to be done. Check out image of New York's big deals.

Hudson Yards Development

http://nreionline.com/photo_gallery/hudson_yardsCheck out images for Coach's new global headquarters, which will anchor the initial tower of the Eastern Rail Yards site within the 26-acre mixed-

Videos

JLL at ICSC 2012

http://nreionline.com/video/bjorson_thumbnail.jpgCheck out these videos from JLL at ICSC 2012 in Las Vegas...

 

Click here to view more videos.


Blogs


http://nreionline.com/blog/schein_blog_headshot.jpg

Real Vox

Traffic Court

The Full Nelson

Events

Strategic Real Estate Investment Conference

Date: Thursday, June 7, 2012
Time: 7:45AM-6:00PM
Place: 1290 Avenue of the America, 5th Floor
What: A full-day event exploring portfolio diversification through opportunistic and alternative investments....

Click here to view more events...

http://nreionline.com/nrei-300x125-house-091211-resourcebook-jpg.jpg

This Week's Most Popular

Current Issue

http://nreionline.com/april2012_cover.jpg

NREI Newsletters



Retail Traffic Newsletters

View NREI Newsletters

NREI Newsline
NREI Seniors Housing Finance and Development
NREI The Green Sheet
NREI Institutional Outlook
NREI Distressed Real Estate Strategies
NREI Daily/Central
NREI Daily/New York
NREI Daily/New Jersey
NREI Weekender
NREI Global Real Estate Monitor
REIT Insider
Retail Traffic Online
The Site Optimizer

Join the Conversation