EquityLock Commercial

It is no fun watching your commercial real estate's value fall by 30% or more, but that is sometimes the reality of what the future holds when you are at what may be the top of a Commercial Real Estate Cycle, or at the beginning of a recession. 

The EquityLock Commercial - Value Protection is a protection plan that is a hedge against a decline in the value of your Commercial Real Estate. 

So how does the EquityLock Commercial - Value Protection Plan work?

Essentially, the EquityLock Commercial - Value Protection Plan is a contract that remunerates the Commercial Real Estate Property owner if the Subject Property falls in value. 

HERE IS HOW IT WORKS:

 

For a fee of 1% to 3% of the Commercial Real Estate Property's value at the time the Plan is initiated, paid out in the form of monthly premiums over a period of 3 to 7 years, the owner of the Commercial Real Estate Property buys a plan that protects them against the loss of equity in the Subject Property if the market takes a turn for the worse. The plan pays the Plan Holder when they sell the Subject Property in a market where average Commercial Real Estate prices have dropped since the plan was initiated. The amount the Policy Holder receives is tied to the size of the market's decline.

DETERMINATION OF VALUE:

 

FIRST APPRAISAL: At the time of Application, EquityLock Commercial will arrange for a commercial appraisal of the Subject Property by a mutually agreed to Commercial Real Estate Appraisal Professional (generally an MAI Certified Appraiser) that is State Certified and Licensed. This First Appraisal will determine the Fair Market Value of the Subject Property at the time of the Start of this EquityLock Commercial – Value Protection Plan.

 

FINAL APPRAISAL: In the event that Plan Holder / Property Owner determines to sell the Subject Property at any time after the effective date of this EquityLock Commercial – Value Protection Plan, the Plan Holder / Property Owner must notify EquityLock Commercial in writing of the Intention to Sell. Within ten days after receipt of the notice, EquityLock Commercial will arrange for an appraisal of the Subject Property by a mutually agreed to Commercial Real Estate Appraisal Professional (generally and MAI Certified Appraiser) that is State Certified and Licensed. This Final Appraisal will determine the Fair Market Value of the Subject Property at the time of Listing for Sale.

 

BENEFITS PROVIDED:

 

If the Subject Property is sold during the Term of this EquityLock Commercial – Value Protection Plan, Equity Lock Commercial will compensate the Policy Holder / Property Owner for the difference between the value of the Subject Property when the Plan was initiated (as determined by the First Appraisal), and the greater of the Final Sales Price of the Subject Property or the value of the Subject Property determined by the Final Appraised of the Subject Property.

 

Example, if the First Appraisal determined that the value of the Subject Property was $400,000 USD, and the Final Appraisal three years later determined the Subject Property to be worth $360,000 USD, the potential claim would be approximately $40,000 USD.

 

  • If the Subject Property from the above scenario sold for $370,000 USD, the Final Claim would be for $30,000 USD (the difference between the Final Sales Price and the value of the Subject Property at the start of the Commercial EquityLock – Value Protection Plan). The Final Claim was $30,000 USD because the Final Sales Price of the Subject Property was greater than the Final Appraised value of the Subject Property.

 

  • If the Subject Property from the above scenario sold for $350,000 USD, the Final Claim would be for $40,000 USD (the difference between the Final Appraised value of the Subject Property and the value of the Subject Property at the start of the start of the EquityLock Commercial – Value Protection Plan). The Final Claim was $40,000 USD because the Final Appraised value of the Subject Property was greater than the Final Sales Price of the Subject Property.

 

 

CLAIMS PROCEDURES:

 

Within 60-Days after the sale of the Subject Property, the Policy Holder must file his / her / its claim including documentation of the sales transaction. EquityLock Commercial will provide full payment of claims under this EquityLock Commercial – Home Value Protection Plan within 30-Days after it receives the necessary documentation that the title of the Subject Property has been transferred.

                                                

EquityLock Commercial's - Value Protection Plans are for 3, 5 or 7 years, and can be renewed at maturity at current market values of the day as determined by a third-party Commercial Appraisal (generally an MAI Commercial Appraisal). 

Mr. Steve Muehler

Founder & Senior Managing Member

Private Placement Markets, LLC

Phone: (877) 259-8066

Direct Email: Steve@PPMSecurities.com

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Important Legal Notice and Disclaimer: EquityLock Commercial is a Registered Tradename of Private Placement Markets, LLC. Private Placement Markets, LLC and its affiliates and subsidiaries (collectively, the “Company”) are not a broker-dealer or an investment adviser. The Company does not provide investment advice or sell securities or execute securities transactions on behalf of third parties. The Company does not advise any user on the merits or advisability of any investment or securities offering, nor does the Company provide any legal, tax, investment, or transactional advisory advice or services. The information provided on the website is not intended to be an offer, solicitation or recommendation by the Company to buy or sell any investment instruments or enter into any other type of transaction, nor shall it be considered investment advice. Your access and/or use of this website constitutes acceptance of the Terms of Use, Disclaimer and Privacy Policy.   real estate

EQUITYLOCK COMMERCIAL

a Division of Private Placement Markets 

Steve Muehler, Founder & Managing Member

101 California Street, San Francisco, California 94111

Phone: (877) 259-8066

Email: Steve@PPMSecurities.com

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