INSIGHTS

February 2, 2017

Lease Accounting Update

Financial Executives magazine wrote an article that I thought did an excellent job of outlining the pending changes for lease accounting.  These changes are coming from the joint project between the Financial Accounting Standard Board (FASB) and the International Accounting Standards Board (IASB).  The article focuses on how the proposed new standards are expected to affect lessees.  Currently, under GAAP, all leases are presumed to be […]
February 2, 2017

What Borrowers Want From Their Bankers

Two separate conversations encouraged me to write this post.  One was a chat with a client commenting on his great banker and the other was with a banker who jokingly said, “What is it you borrowers want?” Yes, low rates, low fees, flexibility, etc., are great, but in my opinion what borrowers really want (or should I say need) is an ally they can call on […]
February 2, 2017

Pigs Get Fat, Hogs Get Slaughtered

A home-builder client and I were discussing a large plat he is working on.  It’s in the dirt-work phase, so he has not yet committed to building homes.  When I asked what his plans were he said, “In this market, I’m a seller.”  He will most likely sell the finished plat to another home-builder when complete.  He went on to say, “I could probably get more for […]
February 2, 2017

Good times, good tenants?

It may be a slow recovery, but we are certainly in the growth mode. With that comes an increase in leasing.  Coming off a difficult economy means the review of your prospective tenant’s credit is even more important.  Here are some key items to consider: Can they pay the rent? Look at the whole company, not just their financial statement How long have they been in […]
December 1, 2016

How to Sell a Bad Tax Return

I was working with a client to finance an office building acquisition.  The building structure, its 100% tenancy, and economic fundamentals were great, but several lenders had issue with my client’s tax return.  He is an avid real estate investor and developer which brings challenges to his tax return.  For example: Passive losses from real estate investments he has an interest in, but is not required […]
December 1, 2016

What Finance Brings to the Team

I wrapped up an assignment working with a family whose real estate portfolio was in serious trouble. Due to years of poor financial thinking, the portfolio had terrible cash flow, a pile of credit card and other high-interest debt, many major deferred maintenance projects, and was seriously past due on property taxes to the point of almost losing properties to the county and lenders threatening action. […]
February 2, 2017

Lease Accounting Update

Financial Executives magazine wrote an article that I thought did an excellent job of outlining the pending changes for lease accounting.  These changes are coming from the joint project between the Financial Accounting Standard Board (FASB) and the International Accounting Standards Board (IASB).  The article focuses on how the proposed new standards are expected to affect lessees.  Currently, under GAAP, all leases are presumed to be […]
February 2, 2017

What Borrowers Want From Their Bankers

Two separate conversations encouraged me to write this post.  One was a chat with a client commenting on his great banker and the other was with a banker who jokingly said, “What is it you borrowers want?” Yes, low rates, low fees, flexibility, etc., are great, but in my opinion what borrowers really want (or should I say need) is an ally they can call on […]
February 2, 2017

Pigs Get Fat, Hogs Get Slaughtered

A home-builder client and I were discussing a large plat he is working on.  It’s in the dirt-work phase, so he has not yet committed to building homes.  When I asked what his plans were he said, “In this market, I’m a seller.”  He will most likely sell the finished plat to another home-builder when complete.  He went on to say, “I could probably get more for […]
February 2, 2017

Good times, good tenants?

It may be a slow recovery, but we are certainly in the growth mode. With that comes an increase in leasing.  Coming off a difficult economy means the review of your prospective tenant’s credit is even more important.  Here are some key items to consider: Can they pay the rent? Look at the whole company, not just their financial statement How long have they been in […]
December 1, 2016

How to Sell a Bad Tax Return

I was working with a client to finance an office building acquisition.  The building structure, its 100% tenancy, and economic fundamentals were great, but several lenders had issue with my client’s tax return.  He is an avid real estate investor and developer which brings challenges to his tax return.  For example: Passive losses from real estate investments he has an interest in, but is not required […]
December 1, 2016

What Finance Brings to the Team

I wrapped up an assignment working with a family whose real estate portfolio was in serious trouble. Due to years of poor financial thinking, the portfolio had terrible cash flow, a pile of credit card and other high-interest debt, many major deferred maintenance projects, and was seriously past due on property taxes to the point of almost losing properties to the county and lenders threatening action. […]