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"FLASH" of Lightning )
Financial Brokers for Business & Commercial Loans November 2007
In this issue
  • Fires Hit Southern California
  • Key Commercial Loan Rates
  • Our Gift to You - FREE 3 Hours Billionaire in Training Seminar
  • Ask the Broker?
  • Recent Loan Funding
  • Hiring Opportunities
  • Greetings Harlan,

    Welcome to "Flash" of Lightning, our monthly newsletter.

    We've written this brief newsletter to keep you, our friend and client abreast of the latest information regarding all areas of financing. We will share with you relevant articles that pertain to financing either commercial projects or business acquisitions.

    Harlan A. Friedman, President & Broker

    Fires Hit Southern California

    In the wake of the fires that have hit Southern California as well as the massive destruction of both homes and businesses we are going to deviate from our standard newsletter and hopefully shed some light on how all of this will effect the Southern California economy.

    Our heartfelt prayers and thoughts go out to everyone that was effected by this terrible demonstration of mother nature. If there is anything that we at Lightning Commercial Funding can do for anybody effected by the fires please let us know. We have a plethora of resources that we can share with casualties of all of the fires.

    We all know through our basic study of economics that war is good for a local economy, especially the rebuilding of a destroyed locale. I believe that San Diego and the rest of Southern California have experienced a war of nature that has taken its toll in so many ways. Homes burnt to the ground fauna and animal habitat reserves that have been leveled and will take years to repopulate, businesses have been destroyed and other industries that will feel a collateral effect.

    However in the aftermath of all of this destruction the real estate economy as a whole will rebound much quicker than what the experts were projected prior to this devastation.

    I'd like to share with you parts of an article that a good friend and commercial broker Don Zech from CDC Commercial shared with his readers. Don can be reached at his Office number of 760-743-8500. Or visit his website at

    "In a strange turn of events, our devastating fire may come to the rescue of the F.I.R.E. industry (Finance, Insurance and Real Estate). Over the last quarter our regions unemployment rose to 4.8% eclipsing the nations 4.6% rate. This is really bad news and I was going to issue a warning this month that we may have reached a tipping point. HOWEVER, in the aftermath of the fire, the construction industry in San Diego will be getting the boost needed to get it stabilized until the housing market comes back in a year or two. Fire victims will be replenishing households, helping retailers. The great news is that the money for all of this is coming from outside of the area (insurance companies and government).

    Insurance premiums are likely to rise in the years to come. Material costs (cement, asphalt, copper, dry wall) are going to rise. World demand is keeping raw materials high and locally public projects (education, healthcare and transportation) are keeping demand high. We have already seen building materials jump 50% - 200% over the last couple of years. Prior to the fires, the projections were for 6% - 8% increases in coming years. Now in the post-fire environment, expect material costs to jump dramatically. Over the next few years this is going to keep new commercial construction restrained and continue to fuel the increase in value and rents in existing projects....

    Basically under most any scenario I can paint (inflation, stagflation, falling dollar), real estate continues to hold the prize as the best cash flowing, inflation protected, hard asset with tax advantages and the benefits of leverage.

    This is actually a solid time to be a buyer. CAP rates have risen ½% to 1% in response to rate increases. With less buyers, intelligent buyers have the time to select amongst properties, accomplish due diligence, avoid bidding wars and actually negotiate on price, terms and repairs.

    Obviously the week of the fires the phones were dead. We are in hope that the weeks leading up to Thanksgiving pick back up before the traditional slow down that occurs between Thanksgiving and the end of the year. I can tell you that up to the fire things seemed slower, but incoming call volume and deals completed (solid signs of activity) are ahead of last year (both monthly and year to date). Nationally, more commercial deals closed year to date than in 2006!"

    The above is the express opinion and insight of Don Zech and CDC Commercial and not Lightning Commercial Funding as we are not realtors but Financial brokers to assist you with all of your financing needs.

    Key Commercial Loan Rates

    Key Commercial Loan Indexes

    Fed Prime Rate 7.500%

    10-Year CMT 4.360%

    30-Year CMT 4.640%

    USD 6 MOS LIBOR 4.794%

    As of November 4, 2007

    Our Gift to You - FREE 3 Hours Billionaire in Training Seminar

    There is still time to register, follow the link below. We look forward to visiting with you at the seminar. Stop by our booth to say hello.

    As a Gift for our readers we have arranged a limited number of free tickets to the Billionaire in Training 3 hour workshop, presented by Brad Sugars, founder of Action Coach.

    Wanting success is not enough ... you have to take ACTION!

    With this in mind this is your opportunity to listen and learn from one of the world's most renowned business owners and entrepreneurs!

    The best part is ... this is your chance to attend for FREE, these tickets are valued at $69.95 for regular admission.

    In just 3 hours Brad will change the way you think about money, wealth, business and property FOREVER ... and don't be put off by the name - no matter what your goal ... millionaire, billionaire or even trillionaire, Brad can show you step-by-step how to make it a reality.

    Here's a quick run-down of what you'll get:
    Why the Rich Get Richer and the Poor Get Poorer and How To Break The Mold ...
    How to sell a Business Over and Over again ....
    Discover Passive Income and what it can do for your Lifestyle
    How to Multiply your number of Customers, your Turnover and your Profits ...
    How to free yourself from Debt - Whatever your Financial Situation is ...
    How to Buy, Build and Sell Businesses AND Property with little or none of your own money ...
    Brad's 8 Rules for Investing in Property ...

    I'm sure you'll agree that's a lot of information to pack into just 3-hours, but Brad is determined that you get the knowledge you need to make yourself rich! That's why he'll also show you...

    How YOU can Fast Track your way to Wealth ...
    My 7 Rules for Investing in Businesses ... "
    How To choose the RIGHT Investment for your Situation ...
    The Mindset Shift that will make you Rich ...

    The Freedom To Create Your Dreams Is Just 3 Hours Away ...

    Whether you're an employee who wants to get ahead, a business owner who wants to take the next step, a student, a novice investor, or a serious financier, this is one seminar that YOU CAN'T MISS!

    USA TOUR DETAILS Wed 28th November San Diego, California Convention Center

    To claim your complimentary ticket click on the green registration information below article.

    Your special registration code is: USSP107

    You will need to enter that code on the registration page in order to claim your complimentary ticket.

    But ... you must act quickly ... these events are a guaranteed sell out BOOK EARLY

    Lightning Commercial Funding, Inc is a Sponsor of this seminar, so stop by and say hello.

    Ask the Broker?

    Out of respect for so many of our friends there will not be an ask the Broker question, only an offer that if anyone needs to rebuild their business as a direct result of the fires we will reduce our standard points by 50% and waive all retainer fees customarily charged by us.

    Next month we will revert back to our normal Newsletter, so continue to send in your thought provoking questions.

    Please email your questions to "Ask Your Financial Broker" at

    Recent Loan Funding

    Refinance of Commercial Debt SBA 7A loan for 300K
    Non Recourse Construction loan - 20M Commercial Business with Real Estate - SBA 7A loan for 405K
    Shell Gas Station - SBA 504 Loan for 1.5M
    Subway Franchise - SBA 7A Loan for 250K
    Wall Manufacturing Company - SBA 7A Loan for 110K
    Self Storage Construction Loan for 6.6M
    Self Storage Mini-Perm Loan for 5.3M
    Self Storage Bridge Loan for 4.8M
    Shell Gas Station - SBA 7A Loan for 520K
    Residential Care Facility - Commercial Loan $650K

    Hiring Opportunities

    If you are interested in joining our GROWING company please contact Harlan. We are expanding this year and would like to have you join us. For those financially astute individuals we offer a proven system to build your commercial finance business along with comprehensive training.

    UP-Coming Seminars
    Call the Office at 858-592-0659 for upcoming topics, times and dates.

    Quick Links...

    phone: 858-592-0659

    Lightning Commercial Funding, Inc. | 16486 Bernardo Center Drive | Suite 100 | San Diego | CA | 92128