Originally posted by Unregistered
View Post
Announcement
Collapse
No announcement yet.
CFC facility
Collapse
X
-
Unregistered
-
Unregistered
- Quote
Comment
-
Unregistered
Originally posted by Unregistered View PostI interpreted the post as the estimated cost is 6 million and they took a loan but not necessarily for the full 6m. I work in banking and have seen banks make some stupid loans, but for the most part they will do a very careful analysis before handing over any substantial amounts of money. given the size of CFC overall it's likely they've put some substantial skin in the game.
One thing to remember is now CFC has some kind of substantial mortgage to pay off that they didn't have before. That could impact what it charges down the road
A). They have cash flow and can service the debt
B). They are replacing field rentals fees with a mortgage payment
C). They can make additional moni s renting out the field
- Quote
Comment
-
Unregistered
Originally posted by Unregistered View PostIf you are in banking you would know that
A). They have cash flow and can service the debt
B). They are replacing field rentals fees with a mortgage payment
C). They can make additional moni s renting out the field
1) that property as collateral has limited prospects if the borrower stops paying and I foreclose. My bank doesn't want to own a "unique" property.
2) I hope they got real estate tax abatements, because if not your #2 and 3 above are mitigated. It's a sizeable property, real estate tax could be sizeable as well.
3) in writing the loan, we don't look at the potential for new business unless there are signed contracts.
God bless them for getting bank financing, but I'd love to meet their banker.
- Quote
Comment
-
Unregistered
Originally posted by Unregistered View PostI'm in banking and:
1) that property as collateral has limited prospects if the borrower stops paying and I foreclose. My bank doesn't want to own a "unique" property.
2) I hope they got real estate tax abatements, because if not your #2 and 3 above are mitigated. It's a sizeable property, real estate tax could be sizeable as well.
3) in writing the loan, we don't look at the potential for new business unless there are signed contracts.
God bless them for getting bank financing, but I'd love to meet their banker.
- Quote
Comment
-
Unregistered
Originally posted by Unregistered View PostI'm in banking and:
1) that property as collateral has limited prospects if the borrower stops paying and I foreclose. My bank doesn't want to own a "unique" property.
2) I hope they got real estate tax abatements, because if not your #2 and 3 above are mitigated. It's a sizeable property, real estate tax could be sizeable as well.
3) in writing the loan, we don't look at the potential for new business unless there are signed contracts.
God bless them for getting bank financing, but I'd love to meet their banker.
- Quote
Comment
-
Unregistered
Originally posted by Unregistered View PostThey'll also have much higher insurance costs and maintenance costs that they don't have now - most of that is on the burden of whoever owns the fields CFC rents
You can argue the need for such a facility but the financing shouldnt be an issue. Its not like CFC is getting smaller
- Quote
Comment
-
Unregistered
Originally posted by Unregistered View PostI'm in banking and:
1) that property as collateral has limited prospects if the borrower stops paying and I foreclose. My bank doesn't want to own a "unique" property.
2) I hope they got real estate tax abatements, because if not your #2 and 3 above are mitigated. It's a sizeable property, real estate tax could be sizeable as well.
3) in writing the loan, we don't look at the potential for new business unless there are signed contracts.
God bless them for getting bank financing, but I'd love to meet their banker.
Taxes in Bethany? The are minimal
- Quote
Comment
-
Unregistered
Originally posted by Unregistered View PostI'm in banking and:
1) that property as collateral has limited prospects if the borrower stops paying and I foreclose. My bank doesn't want to own a "unique" property.
2) I hope they got real estate tax abatements, because if not your #2 and 3 above are mitigated. It's a sizeable property, real estate tax could be sizeable as well.
3) in writing the loan, we don't look at the potential for new business unless there are signed contracts.
God bless them for getting bank financing, but I'd love to meet their banker.
12 acres with several soccer fields isn't that unique as it could be repurposed for just about anything.
It's simple cash flow lending ... don't make it that complicated. There are a number of national, regional and even local lenders who would make that deal. Just look at OW and FSA
- Quote
Comment
-
Unregistered
Originally posted by Unregistered View PostUnique property = church, mortuary, hotel, hospital, old age home, school, etc. something that it would be hard to repurposes.
12 acres with several soccer fields isn't that unique as it could be repurposed for just about anything.
It's simple cash flow lending ... don't make it that complicated. There are a number of national, regional and even local lenders who would make that deal. Just look at OW and FSA
- Quote
Comment
-
Unregistered
There are plenty of local investment groups that would take over that property. Great cash flow since they'd be able to rent it out to anyone for just about any sport, not just soccer.
- Quote
Comment
-
Unregistered
Originally posted by Unregistered View PostThere are plenty of local investment groups that would take over that property. Great cash flow since they'd be able to rent it out to anyone for just about any sport, not just soccer.
What does a field go for? $200 an hour?
- Quote
Comment
-
Unregistered
Originally posted by Unregistered View PostThere are plenty of local investment groups that would take over that property. Great cash flow since they'd be able to rent it out to anyone for just about any sport, not just soccer.
What does a field go for? $200 an hour?
If you are not a club, there's no economy of scale in owning one of these.
- Quote
Comment
Comment