A Niche Lender
Rothchild Capital Solutions of Illinois
About Us
Rothchild Capital Solutions
Since the mid 90"s, Gary Williams, Alan Shelton and Garcia Spaulding has originated, managed and closed more than $25 billion in financial transactions in the Midwest Southwest and Southeast. This includes real estate preferred equity, senior secured debt and a number of custom built bridge loans.
The complexities of real estate finance markets present constant challenges for even the most sophisticated real estate investors. Sourcing capital that offers the right fit and structure in today's environment can be a time-consuming and frustrating task. Rothschild turns confusion into clarity through a customized lending facilities and several specialty products delivered through a build-to-suit approach.
SPONSOR IN THE RE JOURNALS EVENTS JULY AUGUST & SEPTEMBER 2021
More About US
Rothchild Capital Solutions of Illinois LLC
Rothchild Capital Group of Illinois (funding platform LLC/SPE)
Rothchild Capital Holdings Inc (Illinois)
Key Area of interests: technology AMGV
Rothchild Leveraged Lending Solutions
"Alan Shelton Leverage Lending Solutions"
Many investors are drawn to commercial real estate due to the widespread and secure use of leverage. Commercial real estate lending is typically considered stable due to the real estate market’s low relative volatility. Commercial real estate debt is collateralized by tangible assets and provides investors with the opportunity to receive risk-adjusted returns and obtain exposure to leverage within a broader investment portfolio. Consequently, the real estate debt market is well-established and highly competitive.
While often accretive to returns, debt also has the potential to compound losses. Under normal market conditions, the cost of debt (interest rate) is lower than the rate of return produced by a commercial property asset. Accordingly, investors seek to arbitrage this spread in order to boost investment returns. However, when this spread reduces through either increased interest rates or reduced rental return, the investment’s margin of safety to meet repayment obligations narrows. As higher rates of leverage are used, the potential for outsized gains or losses is increased.
When making investment decisions relating to leverage, an investor must consider whether the additional return generated is sufficient compensation for accepting the related risk. Achieving that balance involves the consideration of the impact on return on equity and the engaged debt level. In the hypothetical case, the investor would receive an additional yield of 68 basis points for accepting the additional risk associated with a leverage increase from 45% to 60% LTV.
Alan Shelton
Commercial Real Estate Analyst Report
Due Diligence:
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Rothchild-Outsource Due Diligence:
Level one due diligence:
a). cash flow modeling review-third party
b). demographic and or economic analysis review-third party
c). investment loan grade review and equity decision-in house
Level two:
a). real estate and or project inspection-third party
b). collateral evaluation-third party
c). desktop review with field study case by case-third party