Our Core-Driven Perspectives on Transactional Quality for the Client

Limited Credit Availability

Conventional banks & other lending sources remain under fiscal and regulatory pressure. SMG Capital Holdings (SMG) has the ability to give you a decision within 24-48 hours (with necessary information provided). We often can close a commercial bridge loan within two weeks after origination.

Flexible Terms

Traditional bridge/hard money lenders are localized, unstructured and carry exorbitant pricing and terms; very few institutional bridge/private lending funds exist. We evaluate each project based on its own merits. We try to find pricing that is appropriate given the underlying risk, but we strive to find terms that will still put our borrowers in a position to succeed.

Multi-Family Properties Commercial Loan Programs
Multi-Family Commercial Loans are the most popular and easiest types of Commercial Financing a real estate investor can get. Most Commercial Lenders like Multi-Family Commercial Loans due to its low risk tolerance because it is very easy and streamlined to lease vacant apartment units to renters than it would be leasing a commercial space to a commercial tenant. Apartment buildings that are 5 units or more, mixed units like combination of residential and commercial space, and apartment complexes all fall into Multi-Family Commercial Loans. Loan to value requirement are normally 80% LTV on apartment building loans. However, a lower loan to value may be required by a Commercial Lender if the lender deems either the property and/or borrower high risk. Both recourse and non-recourse commercial mortgage loans are available.

Mixed-Use Properties Commercial Loan Program
Mixed-use commercial loan programs are available at competitive terms and rates. These mixed-use commercial buildings combine residential units with commercial spaces such as retail stores and offices. Examples of Mixed-Use Properties includes a commercial property where there is a store front on the first floor and an apartment on the second floor or offices on the ground floor and apartments on the second floor.

Office Spaces Commercial Loan Programs
Office condo units, Office Buildings as well as Office Complexes all fall into the Office Spaces Commercial Financing Category.

Retail Spaces And Strip Shopping Malls Commercial Loans
Retail stores and strip shopping malls.

Industrial Commercial Buildings
Warehouses as well as multi-tenant industrial buildings.

Office Spaces Commercial Loan Programs
Office condo units, Office Buildings as well as Office Complexes all fall into the Office Spaces Commercial Financing Category.

Retail Spaces And Strip Shopping Malls Commercial Loans
Retail stores and strip shopping malls.

Industrial Commercial Buildings
Warehouses as well as multi-tenant industrial buildings.

Partners You Can Rely On

We are current developers ourselves who understand what it takes to develop and complete projects. SMG wants to ensure that your project is successful. We expect every transaction to result in a “win-win” outcome. As a direct syndicator with a large amount of capital, you can rely on us to never miss a funding date. To date, we have funded thousands of loans and have never missed a funding date. We step in when other lenders are unable to perform.

Portfolio Research

SMG is a leader in real estate portfolio research, therefore investors frequently ask SMG "what is the appropriate portfolio allocation for properties"? Because real estate can be public or private, equity or debt, the answer to this question is not straightforward, especially when we consider investor liabilities and aversion to loss.

Risk Assessment

The English dramatist, William Gilbert, of Gilbert and Sullivan, once wrote, “Things are seldom what they seem; Skim milk masquerades as cream.” Investment risk is no exception, and investors frequently ask what the likelihood is of a capital loss or negative return. SMG embraces the explicit and rigorous assessment (and pricing) of risk using Monte Carlo and other simulation techniques. We actually analyze risk-adjusted returns; we do not just talk about it.

We focus on a number of sources of risk, which include lease default, the likelihood and associated cost of development delay, the choice of floating versus fixed-rated debt, optimal portfolio mix, hedging, valuation of guarantees as a function of LTV, valuation of real options (including the option to expand, the option to postpone, and the option to sell a development project), lease renewal and extension options, and optimal working capital and other reserves.

We occasionally use sophisticated risk simulation techniques, such as Monte Carlo analysis, to evaluate complex transactions. Static analysis, which is the industry standard, usually fails to convey the true extent or implications of risk; in fact, it often masks risk.

This is the SMG® Way.