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Event

Outlook for Private Credit in the 2nd Half of 2020

Hosted by Engineered TaxServices, Inc.
July 15, 2020
12:00 PM - 13:00 PM
Panel
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As we think back to the end of 2019, no one could have foreseen the challenges that exist today in markets, the economy, and in our lives. COVID – 19 has devastated the global economy & our lives.

Taking things one day at a time may be all that lenders and investors can do in response to the heightened level of uncertainty, but looking ahead as the world begins to normalize is the next opportunity. There is 1 truth that participants can count on and that is that opportunities arise out of change. There is no place where change has been more apparent, over the last 10 years, than Private Markets. In 2020 mid-year market outlook, our panelist will review what happened and share their collective 100+ years of experience offering us an insight into the detail on how to find and execute in this challenging environment.

  • Maneuvering the volatility
  • Identifying diverse sources of income and collateral
  • Managing the day to say challenges post pandemic
  • Find good deal flow and closing
  • Legal advisors and the real value that they bring
  • Workouts or bankruptcy

Recording

BD 9+ Outlook for private Credit in 2H 2020

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Speakers

Michael D’Onofrio
Managing Director @ Engineered TaxServices, Inc.
Nick Eskandari
Founder & CEO @ Key Bridge Fund
Rob Jafek
Founder @ Boomerang Capital
Bobby Werhane
Assistant Vice President
Demian Waldman
Managing Partner

About

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Boomerang Finance, LLC (the “Fund”) has an investment objective of providing income with limited variability in returns. This is accomplished by providing short-term, business-purpose loans secured by real estate in a first lien position with the additional protections of a personal guarantee from borrowers and cross collateralization. All loans are self-originated, and risk managed through careful underwriting, thoughtful portfolio construction and consistent servicing. The majority of borrowers are return clients. Exposure is broad-based, and the Fund is structured as a REIT.

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Engineered TaxServices, Inc. (ETS) is a licensed engineering firm that focuses on federal, state, and local tax benefits. Engineered Tax Services was founded by CEO, Julio Gonzalez, to bring specialty tax engineering services to mainstream America. There are several federal tax incentives in which the IRS requires professional engineers and scientists to determine the tax benefits in the areas of real estate and manufacturing. Specific to real estate is the ability to depreciate real estate investments by components vs. the traditional expensing of real estate over a 39 or 27.5-year period. A forensic engineering study of a real estate property, in which the building is depreciated component by component, allows investors to expense up to 50% (and in some cases, more because of 100% bonus depreciation) of the purchase of their building up front.Decades ago, cost segregation was only available to real estate investors who worked with the Big 4 accounting firms who had dedicated engineering staffs. Mr. Gonzalez’s goal was to be a resource to the CPA community so that these services could be available to all real estate investors, big or small. Cost segregation continues to be one of the largest tax incentives for wealth preservation. There are very few investments that the United States Federal government allows investors to expense dollar for dollar. Real estate is the one investment from which you can deduct 100% of the purchase price against taxable income. Inherently, this allows for a 50% return on investment at a 50% federal and state tax bracket. Cost segregation allows the investor the ability to mitigate tax liabilities and preserve wealth by accelerating these deductions much quicker. Engineered Tax Services also uses its engineering, scientific and tax team to provide one of the most important federal and state tax credits available to United States businesses in the form of research and development tax credits (R&D). R&D Tax Credits are meant to incentivize manufacturing, innovation and technical design in the United States. These credits are essential to keep labor and promote job creation in the United States. Qualifying activities include developing new or improved products or manufacturing processes, tool and die development, technical design in the construction industry, software development, fracking and drilling technique development, and developing new or improved drugs or formulas, just to name a few. The R&D Tax Credit is a very important federal incentive meant to ensure that US companies remain competitive globally.

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Key Bridge Fund, located in Beverly Hills, California is a private commercial real estate lender and its sole business is to originate short-term bridge loans typically ranging from six to twenty-four months with a maximum of 60% Loan To Value “LTV” ratio secured by the equity in the multifamily residential and commercial real estate in first-lien position in select strong markets of the United States, with a primary focus in California. Key Bridge Fund is managed and operated by a team of seasoned professional in Commercial Real Estate. With many decades of proven track records in CRE from risk management, mortgage lending, acquisition, developments, market study and preserving the integrity upon which it was founded, we are well-positioned to make sound decision on each and every transaction with a main focus to safeguard the investments of our members/partners while providing capital solutions to borrowers on a timely fashion. The Management of Key Bridge have been through the recessions of the 80s, 90s, and 2000s. With our seasoned, exceptional in-house valuation team and common-sense underwriting guideline, we can fund faster than traditional banks with competitive rates and fees in the private capital market.