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Commercial Real Estate
WHY RENT WHEN YOU CAN BUY?
Read our exclusive interview below with Isaac Lieff, specialist in Commercial Real Estate lending for BDC.
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Isaac is a trusted finance provider to our clients and a highly regarded partner to Private Capital Group.
Together we help businesses in the mid-market to realize their aspirations and make the move from tenant to owner.
FIND YOUR BUSINESS A NEW HOME
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PRIVATE CAPITAL GROUP
INTERVIEW WITH ISAAC LIEFF
David Horowitz
Isaac Lieff
Gregory D. Lever
Interview
Greg:
Isaac:
Tell us about how the BDC is different from other lenders?
The BDC is a Crown Corporation whose sole purpose is to help Canadian entrepreneurs grow their business and achieve their goals. The BDC is wholly owned by the Canadian Government but operates at arm’s length from our sole shareholder, the Government of Canada. The BDC only does term loans – no operating lines, lines of credit, or credit cards. We are the only Bank solely dedicated to entrepreneurs.
Greg:
Isaac:
What team are you on and what is your role?
I’m an Account Manager on BDC’s Mid-Market team. BDC’s Mid-Market team focuses on supporting and lending to entrepreneurs that have greater than $2MM in annual revenue. Since joining the BDC I have met and been able to connect with so many passionate entrepreneurs -- the best part about my job is being able to connect and support so many different business owners in achieving their goals.
David:
Isaac:
What types of loans does the BDC offer?
The BDC offers Term Loans. The BDC does real estate financing for commercial real estate (for both end-users and investors), equipment financing, and term loans for growth and working capital. I would say the BDC’s most competitive offering is our real estate finance offering.
David:
Isaac:
Tell us about the BDC’s real estate finance offering
The BDC does high leverage real estate finance. For strong, profitable companies, with a proven track record – the BDC will finance between 80% - 100% of the purchase price of a commercial building. The Bank has recently completed numerous projects in the 90% - 100% LTV range. These projects could be helping a manufacturer acquire new space to help with their expanding operations. Another owner no longer wanted to pay rent, so they purchased a new office space. Whatever the reason or need, the BDC is great at financing commercial real estate. The reasoning behind the higher leverage real estate loans is so owners can invest their cash into their business rather than the purchase of a building. The BDC’s interest rates are competitive. Terms and conditions are flexible.
David:
Isaac:
How can business owners qualify for financing?
A lot of companies don’t know how much of a mortgage the business can afford. Once I’m able to see the financial statements, some business owners are surprised to hear how much of a mortgage the business can carry. Depending on the size of the mortgage the monthly carrying cost at times has been less, or comparable to what the company was paying in rent. So rather than burning cash month-over-month, some clients have decided to explore purchasing and owning an asset. For projects and purchases that require significant construction and renovations, the BDC can build that into our financing program, which helps the companies’ cash flow. The BDC can postpone principal payments for 12 months to allow for construction to take place and the client to settle into their new office.
