As president of First Financial Capital, Michael Saei draws on three decades of experience, providing structured financing services to the petroleum and convenience store industry. Since 2004, Michael Saei has leveraged this specialized knowledge to oversee First Financial’s acquisition and sale of over 1000 petroleum stations, while at the same time providing bridge loans to the commercial real estate sector. Also referred to as swing loans or gap financing, Bridge loans are short-term lending products designed to provide short-term financing to cover immediate financial obligations. Bridge loans typically carry high interest rates and often require real estate, inventory, or other assets as collateral to ensure repayment.Bridge loans can allow companies to continue operating while awaiting more permanent forms of financing. For example, a company pursuing equity financing may take out a bridge loan to fund its inventory, utilities, payroll, and other core operational costs until it secures long-term funding months in the future. Bridge loans can not only provide extra support to emerging companies seeking initial funding to get off the ground, but can also assist more established firms in making significant acquisitions. Additionally, bridge loans have occasional applications in the real estate sector. Although lenders typically only offer this type of lending to borrowers with extremely high credit scores, a real estate bridge loan can combine the mortgages of two properties to allow home buyers to account for the delay between the purchase of a new home and the sale of an old one.
Michael Saei is an experienced financial executive who currently serves as the president of First Financial Capital in Los Angeles, California. A lifetime appointee to the Special Business Study Foundation, Michael Saei specializes in financial services ranging from portfolio acquisitions and energy industry financing to debt and mezzanine financing.A type of financial tool used for loan and debt strategy, mezzanine financing also combines aspects of equity financing. Equity financing, which can be public or private, is a financial tool that is used to raise assets by selling shares of an organization. Mezzanine financing adds an additional element in that the lender has the right to assume shares or ownership in a firm in the case of default.Mezzanine financing is considered to be a high-risk venture, due to the fact that it typically carries an interest rate of 12-20%. However, benefits of mezzanine financing include tax benefits and flexible repayment strategies. Companies that utilize this form of debt financing are most often large firms with a proven track record of success, but others include those with a clear plan to profitability or expansion.
Michael Saei is the former senior director of acquisitions and finance for Tower Energy Group. Today, Michael Saei functions as the president of First Financial Capital, a direct portfolio lender that offers short-term financing and commercial loans to individuals looking to invest in real estate.In order to find success in 2017, commercial real estate investors need to know about three trends that are anticipated to affect the industry in the coming year.1.The Federal Reserve recently announced its intention to raise interest rates for the first time in ten years. The rate will increase by one-quarter of a percentage point.2.According to the National Association of REALTORS, improved job growth, a high demand for multifamily housing, and the steady growth of commercial real estate in recent years is slated to continue into 2017. Though gains may be modest, industry pundits suggest renters will continue to occupy commercial real estate quickly, keeping the market stable.3. Technology is changing the way business is conducted in every sector, and commercial real estate is no different. The next year may bring commercial real estate investors unprecedented opportunities to digitally market properties, with drones offering new vantage points of buildings, virtual reality offering new ways to tour spaces, and new apps providing tenants a better way to stay connected.
