The information contained herein (the “Information”) is intended for general informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified by either ACP Corp, MortgagesLab Financial Inc or any of its affiliates.

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All real estate opportunities come with varying degrees of risk and past performance is not an indicator or guarantee of future results. Prices can go up or down and current performance may be lower or higher than any performance data quoted for comparisons.

* Father of 2 Awesome Daughters* Commercial Financier * Broker Trainer* Real Estate Investor* My Why

1. Applies to commercial properties only2. Rates are much higher than residential3. Too complicated & difficult4. Takes too long & too much work5. Property does not self debt service6. All banks offer the same7. Don’t know where to start

1. Can finance residential even recreational2. Rates are as low and even lower - MUR3. Complicated = More Options ie JV,VTB4. Warehouse = same time, paid faster5. Corporate Guarantee, PG, Acc Receiv.6. 15-25 Yrs AM, 3 Rates from same lender7. Client pay the price or you ?

*Qualifying for that $325K townhouse vs warehouse?

*With 25% down payment

*2012 NOA - $10K

*2013 NOA – Zero income

*Which residential “A” lender would approve?

*Commercial Lender Approved the warehouse

*3.15% 5 years fix term

•75% LTV•Appraisal required•DCR calculations•Property & business•Credit personal & Co•Story & experience

•Max 95% LTV / 80%•Appraisal optional•TDS/GDS•Income (employment & debt) & 50% of rents

•Credit of personal•Character of applicant

• Not advertised – “overall risk”• “A” business is 1%-2% higher• Amortizations max 25 years ***• Lender fee of 0.50 - 1% avg• Application/broker fee of 1-2% avg• Extensive documents required

• Legal fees – higher than residential• Appraisal fees – up to 5X higher than residential

• Environmental assessment (Stage 1-3)• Property Transfer Tax (Corp deferral only)• Annual review and renewal fees of $250-$2,500 (hidden in contract - beware)

• Much longer process (2-12+ months)• Reports can take up to 6-8 weeks• Longer time required for analysis• 4-6 weeks for realtor subject removals• Requires personal guaranty/corpguaranty

• Same lender offer 3 different rates

*Assessment – Strength, Other broker*Existing Client*Complete Financials, PNW, Bureau*Background story, OTP

*Other broker / My Point of View*Existing client relationship*Other offers? CIBC / Blueshore*Timeline – Nov 24 – SR Dec 15*Complexity (Assignment Fees)*ROI & Risk Analysis

*Class 1, 2 or 3 type of financing?*Financial Statements*Background Stories*Strength of covenant / File

*Blueshore offer:*$3.4M @ 3.75% - 5 Yrs (25 years AM)

Attempting to finance “assignment fee”

Submitted Thursday, Nov 24, 2015

How much do you save on $3.4M over 5 years?

>>>$64,656 in interest!!<<<

Final Approval - Tuesday, Dec 1, 2015

Find a mentor Refer or co-broker to

commercial mortgage broker Start small and simple Be prepared to do more work Be paid 50-100% more per file!

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