Students Of Success

Over the last two years there has been so much condo activity that many
commercial real estate lenders are starting to express concern over the future stability of condo markets. Some lenders have recently found themselves over allocated in condominiums as a result of the recent activity and have therefore become wary of all but the best opportunities.

While the best opportunities (typically in Florida, Southern California and select
destination markets) are still attractive, developers in smaller markets are finding
condos much more difficult to finance in recent months.

The reality is that many of the lenders expressing concern over the current state of
affairs in the condo market are the lenders that have been the least active and have
less knowledge about the asset class. Lenders familiar with the condo market are
not as concerned about the opinions of their peers, but rather with the
fundamentals of the projects and sponsors they underwrite.

Projects that demonstrate that they underwrite according to the following guidelines
should be able to find financing even with the caution currently being expressed by
some in the lending community:

1. Sponsor Suitability: Sponsors that have a successful trackrecord of
   developing other condo projects will be looked upon more favorably than those who
   are building their first project. Having net worth and liquidity in reasonable
   proportion to the project size always helps as well.
2. Capital Structure: Projects that have a sufficient sponsor equity
   contribution will receive more interest
   than those projects looking to move aggressively up the leverage curve.
3. Entitlements: Projects that are fully entitled and permit ready will
   attract more interest than early stage projects.
4. Market Feasability: How many units are you building vs. how many
   competitive units are currently available for sale. How many competitive units are
   coming online during the time period that your project is being built and how many
   units does the market absorp each year? What are your per square foot sales prices,
   how do they compare to the market, and is your location, construction quality and
   ammenity package in line with that of comparably priced projects?
5. Marketing: Who is going to sell your units and do they have a strong
   track record of selling condos within the market you are building in?
6. Presales: What type of presales have you been able to generate? The
   higher the percentage of presales, the more are lender interest you will attract. li>

The bottom line is that good projects from good sponsors will always receive
interest from the capital markets.

Mike Myatt is Executive Managing Director of Pacific Security Capital, a leading commercial real estate investment banking firm providing commercial real estate loans, structured finance, investment sales and advisory services. Contact Pacific Security Capital at 1-800-844-6085 or by visiting the company website at http://www.PacificSecurityCapital.com

A less conventional way of getting a cheap mobile is by using a free line rental offer. 12 month free bargains remain the least understood of all the bargains being offered at the moment.

Accross the entire market the cheapest method of finding a free line rental phone contract is on the web. As free line rental packages are somewhat obscure promotion it is advisable to use a comparison site to find the best priced packages at that given moment.

A free line rental deal is a form of cashback by redemption deal. With a 12 month free line rental phone contract you must remember to pay the cost of the phone exactly the same as you would with any other contract for the first few months before you are able to get your cash back. Then you must remember to claim the cost of the phone back from the store which initially sold you the phone.

In theory a free line rental offer does not cost any money to run. This is providing the individual concerned is rigorous in making their claim for one hundred percent cashback. Often this is not quite as easy as it first seems because retailers stipulate a number of sneaky catches in the contract of free line rental offers to limit the number of successful customers.

12 month free line rental is a trade off, as it is only made available on cheaper handsets. The major risk of free line rental deals is the fact that should the vendor go out of business you cannot redeem your one hundred percent cash back.

Despite the complexities of free line rental packages they are absolutely legitimate and buyers can still find a 100% free phone for 12 months.