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Commercial Real Estate (CRE-Finance) Expands Product Suite by Building Strong Relationships with PACE (property assessed clean energy financing) Lenders.
Partially driven by securitization and strong investor appetite, property assessed clean energy (PACE) loans are forecasted to double over the next year and potentially become the fastest growing method of financing in the United States. 

Commercial Real Estate Finance (CRE-Finance) announced today that they are partnering  with several  PACE (property assessed clean energy financing) Lenders to help facilitate gap financing for their  Debt Financing clients.  CRE-Finance will offer this additional lending option for clients who are looking for additional equity financing for new construction projects in numerous asset classes including multi-family, hospitality, senior living or any commercial property.
“We are very excited to be able to offer this cost-effective solution to our clients” said Todd Tretsky, Managing Member CRE-Finance.

CRE-Finance,  is the industry's premier boutique Real Estate firm. We specialize in long term and short-term debt in the form of bridge, new construction and permanent financing. CRE-Finance is experienced in equity placement and provides services for Real Estate Owners, Developers, Individuals and Entrepreneurs. CRE-Finance has over 50 years of expertise and offers numerous financing options to our clients through our strong relationships with the top lending institutions. We offer top notch customer service with innovative, competitive and reliable financing for outside the "bankable box."

For more information on CRE-Finance, please visit: cre-finance.com, follow us on TwitterFacebookYouTube or Linkedin, or call at 212-257-7305.

(CRE-Finance) Provides Construction Financing to RKTNJ, LLC. for Several Commercial Properties New Jersey.

Commercial Real Estate Finance (CRE-Finance) Provides Construction Financing to RKTNJ, LLC. for Several Commercial Properties New Jersey.
New York, May 28, 2019
Commercial Real Estate Finance (CRE-Finance) announced that they have originated several million dollars in commercial loans to finance the development of several residential projects in Ocean and Monmouth County.
Richard Kevin CEO of RKTNJ, LLC stated “ CRE-Finance’s high leverage, low cost of capital and reliability made this project possible”.
CRE-Finance Managing Member Todd Tretsky stated “ CRE-Finance offers speed, flexibility and certainty of execution to structure custom-tailored solutions to complex situational real estate transaction”
The financing was first mortgage construction loan to complete a subdivision of homes. The loan was underwritten to 77% of cost and 58% of net sell out value.



About CRE
CRE-Finance offers customized solutions for small, medium and large size businesses. We specialize in debt financing for commercial real estate owners, developers, individuals, business owners and entrepreneurs. CRE-Finance overcomes common financing challenges for its clients and engineers prompt, innovative and reliable finance solutions outside the "bankable box".

Commercial mortgage expert Todd Tretsky:  Explains Non-recourse loans, Bad Boy Care-outs from Self Directed Accounts.

Finding a non-recourse commercial real estate loan is far more legally sophisticated than merely finding a commercial lender "foolish enough" to make a commercial loan to a borrower who wants to reserve the right to simply walk away from his obligation.  Sometimes there are important legal reasons why a commercial loan simply must be a non-recourse loan.  We'll discuss some of these important legal reasons further below.

 A non-recourse commercial real estate loan is a loan that is NOT personally guaranteed by the borrower.  If the real estate investment goes bad, the borrower can usually simply walk away from the property.

There are around seven to ten common exceptions, known as carve-outs, to this basic rule.  If the borrower commits certain Bad Boy Acts - fraud, intentional waste (taking a sledgehammer to the walls), toxic contamination, placing a second mortgage on the property without permission, failure to maintain fire insurance on the property, failure to pay the real estate taxes, misappropriation of a condemnation award or any fire insurance proceeds, or certain criminal acts by the borrower - then many non-recourse commercial loans becomes a full-recourse loans.  The borrower becomes personally liable.

However, absent the commission of some Bad Boy Act by the borrower, a commercial lender cannot come back after the borrower for a deficiency suffered as a result of making a non-recourse commercial real estate loan.  A deficiency is a loan loss left over after the property is sold in foreclosure.

Obviously commercial lenders are not crazy about the idea of making non-recourse commercial loans.  In fact, since the Great Recession the vast majority of all commercial banks making portfolio commercial loans today absolutely insist on a personal guarantee by the borrower.

A portfolio commercial loan is a commercial loan that the lender intends to keep in its own portfolio, as opposed to a commercial loan that the lender intends to later sell off in the secondary market.  CMBS lenders and ABS lenders (subprime commercial lenders who sell their scratch-and-dent commercial loans to Wall Street pools) are examples of commercial lenders who are not portfolio lenders.

Bottom line:  Since the vast majority of all commercial loans made today are made by commercial banks and credit unions, non-recourse commercial lenders are fairly rare.  If you happen to meet a commercial correspondent lender CRE-Finance - who is willing to make a non-recourse commercial loan, be sure to make a note of it.

Okay, so when is it legally necessary for a commercial loan to be non-recourse?
1.Let's suppose you own a commercial property in your IRA.  You may not legally personally guarantee your commercial loan from the bank without running afoul of the IRS.  Personally guaranteeing your IRA's commercial loan, in the opinion of the IRS, lowers the interest rate to your IRA and is a form of disallowed contribution. (Code Section 4975(c)(1)(B))

2.Commercial loans to Tenant-in-Common (TIC) investments must be non-recourse; otherwise the investments lose their tax-deferred qualification.

3.Certain irrevocable trusts have a trustee who is separate from the beneficiary, such as a family attorney serving as the trustee for the minor child of a deceased client.  If a balloon payment comes due on a commercial property owned by the irrevocable trust, the trustee certainly isn't going to be willing to guarantee some $800,000 new commercial loan.

Call CRE-Finance to help you with this very complex type of financing. We have been doing it for over 20 years.


You can reach Todd Direct at 212-851-6926 or tt@cre-finance.com