To find out if our broker services are a match for your financing needs, please read the Questions & Answers below,  or call us today at 213-1055.

 

Q. How is John Wilson Brokerage different from my bank?

A.) We have two main goals in any transaction.  1.) to create a competitive environment that forces capital sources to compete for the borrower’s loan and 2.) to manage the transaction workflow so the borrower can focus on executing their business plans. Banks are constrained by loan products and underwriting guidelines that don’t necessarily fit the borrower’s needs. The Bank’s loan officers are incentivized to maximize profits while pushing as much of the risk as possible onto the borrower. Banks also force borrowers through a variety of hoops and typically provide only limited assistance managing transaction workflow.

Our approach is fundamentally different. Our fiduciary obligation is to you, the borrower. Since we are not limited by our affiliation with any one bank, we are able to present your loan to a broad spectrum of potential capital sources and secure the best terms and pricing that the market can offer. Equally important, we remain very much involved in the transaction, sharing the burden of collecting and processing information, coordinating third party reports and driving towards a smooth and successful close.

Q.) Do we end up paying more by working with you?

A.) We charge a negotiable placement fee. Banks typically charge a loan fee of one percent or add an equivalent discounted value into the spread. Because we absorb the cost of originating loans for the lender, we are able to negotiate direct pricing with most lending sources. As a result, borrowers typically incur no additional costs by engaging us to negotiate and manage their transaction. In addition, we save our clients time and money by creating a competitive environment that forces the market to compete for the borrower’s business. Ultimately, clients get all the cost benefits of a more effectively managed transaction without having to accept exorbitant spreads or large loan fees.

Q.) How does John Wilson Brokerage choose its clients?

A.) We pride ourselves on taking a private banking approach to supporting client objectives. By choosing to engage a customer we are committing all of our resources to making their opportunity a success. Customers that work with us know that this often means going beyond the role of a typical advisor. We limit our engagement to no more than three new clients below the application stage at any one time. Our clients are qualified on many of the same criteria that banks use in evaluating loans. However, beyond identifying whether we are capable of effectively helping a client meet their objectives, we typically require an exclusive engagement letter that obligates both parties to the relationship. By limiting the number of real estate investors we agree to represent, we are able to provide a full service, advisory experience that is unique in today’s capital markets.

Q.) Who are John Wilson’s typical lending partners?

A.) Our goal is to add value to customer transactions by offering a wide range of financing alternatives and direct access to top national, regional, and local lenders. We fund commercial loans through agencies, life companies, conduits, and “out-of-the-box” lenders. In addition to permanent debt financing, we regularly structure transactions using high-leverage bridge loans, mezzanine debt, construction loans and straight equity.

Q.) What are your loan minimums?

A.) Commercial loans and apartment financing loans from $500,000 to $8 million. Due to current market conditions and stricter lending guidelines, at this time we are no longer offering loan programs below $500,000