Investor Financing Podcast

We interview real estate investors and lenders.

C-Pace

Misconceptions People Have About SBA 504 Loans – Episode 166

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There are a lot of misconceptions and myths out there about SBA financing in general but also specifically about SBA 504 loans.

đź’ˇ You may hear things like:

“The process takes too long.” Or “You’ll have to put your home up as collateral.” Another one: “The interest rates for the SBA 504 loan are higher than conventional loans.”

While these have a bit of truth to them (for example, the process generally takes longer than a conventional loan), they are easy to overcome.

đź”´ In this episode, we will squash the myths & misconceptions you might have about SBA financing and SBA 504 loans.

Is My Construction Project Eligible for C-PACE Financing? – Episode 163

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Podcast: Download (Duration: 5:01 — 4.8MB)

To be eligible for C-PACE financing, a project must be located in a county or municipality that has approved C-PACE programs within a state that has passed PACE-enabling legislation.

Background:
What is C-PACE? Commercial Property Assessed Clean Energy (C-PACE) is an alternative financing mechanism for property upgrades that improve energy efficiency, utilize renewable energy, conserve water, and more. C-PACE makes it possible for owners of commercial, industrial, multifamily, and nonprofit properties to obtain low-cost, long-term, fixed-rate financing funded by private capital providers. Currently, 30+ states have enacted C-PACE legislation, enabling more than $1 billion in private financing of 2,000+ projects.

C-PACE Financing Explained – Episode 158

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Podcast: Download (Duration: 39:34 — 36.4MB)


What is C-PACE Financing?

âś“Property Assessed Clean Energy (PACE) is an innovative way for owners to pay for upgrades to buildings

âś“A state legislated public/private partnership

âś“Covers 100% of the improvement costs, 20%-30% of a buildings value, repaid through a tax assessment on the property for up to 30 years

âś“PACE is modeled after methods to fund public benefits such as roads, sidewalks, and fire departments

âś“Funding comes from private capital sources

✓2,400 Commercial Projects Completed – $1.5b in funded projects (January 2020)

âś“PACE Equity is a turnkey solution providing funding capital, energy engineering, and project governance to provide surety of close for building owners and developers.

âś“Our experience is unmatched; PACE Equity is using PACE in never-before-seen ways, and our team has completed over 150 projects nationwide.

âś“We operate with PACE, Property Assessed Clean Energy, an innovative way for owners and developers to leverage better returns.

✓PACE Equity covers 100% of the improvement costs (20% of a building’s value), repaid through a tax assessment on the property for up to 30 years.

Watch this informative episode to learn how PACE Equity can help you increase cashflows and discover the PACE Equity advantage!

Commercial Pace Financing For New Construction – Episode 149

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Podcast: Download (Duration: 5:12 — 4.9MB)



Commercial Property Assessed Clean Energy (CPACE or C-PACE) financing for new construction financing is a financing solution that helps overcome the upfront costs of implementing energy, water, or resilience projects. While it is most commonly used to finance projects in existing buildings, owners and developers are increasingly incorporating CPACE into the capital stack for new building construction, adaptive reuse, and major renovations.


#cpace #greenbank #renewableenergy

The Best Way to Finance Hotels in 2021: SBA 504 Green & C-PACE with Senior Debt – IFP Episode 144

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Podcast: Download (Duration: 4:17 — 4.1MB)



Unlike SBA 7(a) financing, the SBA 504 Green program does NOT have a maximum loan amount. You can finance multiple projects. A business may borrow up to $16.5 million from the SBA when energy efficiency requirements are met.

Other benefits & features of an SBA 504 Green loan:
As low as 15% down keeps your cash working to grow your business
Below-market FIXED interest rates with payments fully-amortized over 25 years
No balloon
Franchised or independent hotels qualify
Funds can be used for purchase, construction (including land), expansion, renovation, and equipment/furnishings
PACE Equity with Senior Debt
How Does C-PACE Work?
A property owner borrows money from a private lender to pay for a large-scale energy-efficiency project and makes the loan repayments using a portion of the project savings. The repayment is made in the form of a temporary assessment charge added to their property tax bill. Several types of energy conservation measures can be included in a C-PACE project, such as LED lighting, solar arrays, HVAC equipment, intelligent thermostats, building envelope solutions, and more.

How Is C-PACE Different From Other Financing Options?
One hundred percent of the hard and soft costs of the project are funded upfront by the loan, meaning building owners will enjoy DAY ONE savings on all C-PACE projects with no outlay of capital.
C-PACE loans last for the rated useful life of the installed equipment (often more than 20 years) allowing the cost of the project to be spread out over a longer period vs. a traditional loan.
In the event of a property sale, the tax assessment is automatically passed to the new owner, meaning the original borrower is not required to pay off the loan in advance of the sale.