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    #31
    Originally posted by Unregistered View Post
    I 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
    no worries, they sell the pyramid and the dream- people pay for that, and college

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      #32
      Originally posted by Unregistered View Post
      no worries, they sell the pyramid and the dream- people pay for that, and college
      I't s more about college than any soccer dreams

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        #33
        Looks like the college placement part is easy to sell for CFC. They do they best job by far.

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          #34
          Originally posted by Unregistered View Post
          I 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
          If 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

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            #35
            Originally posted by Unregistered View Post
            If 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
            I'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.

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              #36
              Originally posted by Unregistered View Post
              I'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.
              lol prior banker here and those are all excellent points. Like I said I've seen some very questionable loans made in this business. Depending on how much CFC put in, the loan may not be that risky for the bank - very different if the bank is footing $1M vs $4M.

              Comment


                #37
                Originally posted by Unregistered View Post
                I'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.
                They'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

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                  #38
                  Originally posted by Unregistered View Post
                  They'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
                  Those costs are imbedded in their current rental rates, now they pay themselves. They also have the ability to force branch teams to rent space that would otherwise go somewhere else.
                  You can argue the need for such a facility but the financing shouldnt be an issue. Its not like CFC is getting smaller

                  Comment


                    #39
                    Originally posted by Unregistered View Post
                    I'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.
                    Please it's not that unique. You could bull doze those fields in minutes and it would be suitable for an industrial building.

                    Taxes in Bethany? The are minimal

                    Comment


                      #40
                      Originally posted by Unregistered View Post
                      I'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.
                      Unique 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

                      Comment


                        #41
                        Originally posted by Unregistered View Post
                        Unique 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
                        What about the building they are constructing?

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                          #42
                          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.

                          Comment


                            #43
                            Originally posted by Unregistered View Post
                            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.
                            I disagree about cash flow. Hours are limited due to school, fields limited due to seasons. Maximum occupancy is difficult. Every neighboring town has free field space in the vicinity. If investor groups thought there was good money in this, they'd be building them all over the place.

                            What does a field go for? $200 an hour?

                            Comment


                              #44
                              Originally posted by Unregistered View Post
                              What about the building they are constructing?
                              Could be

                              Used as is
                              Repurposed
                              Or torn down.

                              Comment


                                #45
                                Originally posted by Unregistered View Post
                                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.
                                I disagree about cash flow. Hours are limited due to school, fields limited due to seasons. Maximum occupancy is difficult. Every neighboring town has free field space in the vicinity. If investor groups thought there was good money in this, they'd be building them all over the place.

                                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.

                                Comment

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