Broker Presentation 2021

Private Investing and Lending
Commercial | Residential | Special Situations

Lending Landscape
Our Segment
Expanding
Bank
Lending
Shrinking
Alternative Mortgage
PRIVATE
Provider LENDERS
Return / Cost
“Friends, family,
& high net worth”
BANKS
CREDIT UNIONS
Risk
Private
Private Investing
Investing and Lending
and Lending
Commercial
Commercial | Residential
| Residential | Special
| Special Situations
Situations
About Us
• 15 year track record
• $300,000,000 in funded mortgages
• Brian Moskowitz is a past Director of IMBA
• Member of various Homebuilders’ Associations
• We are Lenders:
Moskowitz Capital Management Inc.
(FSCO Broker & Administrator)
Moskowitz Capital
Mortgage Fund II Inc.
(Mortgage Lender)
Private
Private Investing
and Lending
Commercial
Situations
Why Choose Us?
• You deal directly with the decision makers
• You get an honest answer
• We get you answers quickly
• We deliver on our commitments
• We protect the referral source
• Our borrowers and referral sources are highly successful
Private
Private Investing
and Lending
Commercial
Situations
Our Underwriting Philosophy
• Common sense
• Security value
• Ability to repay
• Flexible deal structure
• Quick turnaround time
Cash Flow .
Debt Service =
Total Debt Obligation
Private
Private Investing
and Lending
Commercial
Situations
Loan Criteria Summary
• Loan Amount: • Prepayment:
• $250,000 to $10,000,000 – Flexible
• Term: • Personal guarantee:

• 6 to 36 months – Required in most situations
• Rates: • Security:
• 6.95% to 12.50%, subject to risk – 1st mortgage, 2nd mortgage on a selective
basis
• Lender Fee:
• 2% to 4% • Timeline:
– Term sheets in 24 hours upon presentation
of good information
• Amortization:
– Funded deals in 2 weeks
• Often interest only
Private
Private Investing
and Lending
Commercial
Situations
Loan Criteria Summary
• Purpose: • Loan to Value: Max:
• Term, construction, environmental – 75% on residential, 70% on commercial,
remediation, special situations higher loan amounts with additional real
estate collateral
• Property Types:
• Reporting:
• Single and multi-family residential,
commercial, industrial, land – NOAs and Job Letters
– Rent roll for rental properties
– Notice to Readers (we can consolidate)
• Non-traditional uses:
• Assisted care, restaurants & bars, • Debt Service Ratio:
auto service, dry cleaners – 1.1:1, flexible
• Location: • Due Diligence:

• All across Canada – Appraisal
• population of 5,000+ – Often Phase 1 ESA on commercial
properties
Private
Private Investing
and Lending
Commercial
Situations
Pricing Landscape
Fees (% of loan amount) Interest Rate
Bank 0.5% 4% - 7%
Credit Union / BDC 1%-2% 5% - 10%
Moskowitz Capital 2% - 4% 6.95% - 12.50%
Other Privates 5%-15% 12% - 30%

“friends and family”
Private
Private Investing
and Lending
Commercial
Situations
What we need to size up the Loan
• One Page Summary
• Application (with net worth summary)
• Credit Bureau
• Income Support
• Financial statements
• NOA
• Forecast
• Rent Roll
• Photos
• Follow-Up Phone Call or Zoom
Private
Private Investing
and Lending
Commercial
Situations
Submitting a Deal
• A picture is worth a thousand words
• Send a complete package in one email
• If it is easier for us to track, you’ll get a quicker response
• Make your case with facts
• Show us that the Borrower can pay
• Cash flow analysis
• Set realistic expectations
• Plan for a 3-way conference call
Private
Private Investing
and Lending
Commercial
Situations
What is in it for you?
• 1% - 2% commission
• Actual Recent Examples:
• $30,000 Broker Fee - $3,000,000 loan
• $12,000 Broker Fee - $800,000 loan
• $3,250 Broker Fee - $220,000 loan
• Lower E&O rates than ‘private lenders’

• Repeat business, often within 12 months
• Adding value by placing a current client’s difficult deal
Private
Private Investing
and Lending
Commercial
Situations
Who’s Making the Money?
• Commercial property owners
• Developers
• Home builders
• Small Business Entrepreneurs
• Target those that are action oriented
Private
Private Investing
and Lending
Commercial
Situations
Single Family Dwelling
• Due to an illness, clients had to take time off work and were behind on
credit card payments. Major bank would not renew.
• Loan Value: $150,000
• Position: First
• Location: Janetville, ON
• LTV: 75%
• Debt Service: 3:1
• Reporting: NOAs and Job Letter
Private
Private Investing
and Lending
Commercial
Situations
Benefits of a Construction
Mortgage
• Assemble the appropriate credit mix
• Finance land, materials and labour
• Own the land, control the project
• Shop around for deals on materials
• Clear set of terms; no demand clauses
• Lien rights are powerful and disruptive
• Build a long term relationship
Private
Private Investing
and Lending
Commercial
Situations
Residential Construction
• Spec infill construction of a semi-detached family dwelling
• First time builder
• Position: First
• Location: Ottawa
• LTV: 75%
• Debt Service: Interest Reserve
• Reporting: NOAs
A new home builder faced a lucrative opportunity to build a spec infill semi-detached
dwelling near downtown Ottawa. This borrower needed fund quickly to capitalize on the
market situation. The borrower also had a lack of history.
Private
Private Investing
and Lending
Commercial
Situations
Use of Proceeds Source of Proceeds
Land cost 341,000 Land Facility 225,000

Hard Cost 423,000 Construction Facility 400,000
Interest Cost 20,000 Interest Reserve Facility 20,000
Example Construction Loan

Soft Cost
Fee, Legal, etc
40,000 Moskowitz Capital Loan
26,000 Builder Equity
645,000
205,000
Breakdown
$850,000 $850,000
Sale Revenue: $1,150,000

Profit: $300,000
Return on Equity: 146%

Multi-Family Construction
• Experienced home builder needed funds quickly
• Spec construction
• Loan Value: $1,950,000
• Position: First
• Location: Fredericton, NB
• Reporting: Review Engagement
Captured excellent opportunity due to bank tardiness. Borrower’s covenant is very strong – main
line of business is building material distribution. He is also a very experienced builder.
Private
Private Investing
and Lending
Commercial
Situations
Use of Proceeds Source of Proceeds
Land cost 300,000 Land Facility 200,000
Hard Cost 2,450,000 Construction Facility 1,600,000
Interest Cost 150,000 Interest Reserve Facility 150,000
Example Construction Loan

Fee, Legal, etc 100,000 Moskowitz Capital Loan 1,950,000
Breakdown Builder Equity 1,050,000
Total $3,000,000 Total $3,000,000
Sale Revenue: $3,673,000

Profit: $673,000
Return on Equity: 64%

Renovation
• Home renovator and property manager seized lucrative opportunity
• Deal done in an afternoon
– Increased from $433,000
• Position: First
• Location: St. John’s, NL
• LTV: 100%
• Debt Service: 1:1 during renovations
• Reporting: Rent Rolls
and Notice to Readers
A local experienced home renovator and property manager faced a lucrative opportunity to
purchase and improve historic St. John’s property. Frequent bank borrower needed fund quickly
to capitalize on market situation.
Private
Private Investing
and Lending
Commercial
Situations
Rental Housing
• Frequent bank borrower needs equity for new project
• 72 unit Multi-family rental housing
• Position: Second
• Location: Moncton, NB
• LTV: 64%
• Debt service: 1.04:1 on subject, 4.5:1 with corporate guarantee
• Reporting: Rent roll and Notice to Readers
A local experienced apartment building owner required additional funds to seize a lucrative
opportunity to build a new condo complex. This frequent bank borrower need funds quickly to
capitalize on the market situation.
Private
Private Investing
and Lending
Commercial
Situations
Short-Term Stay
• Purchase and improvements to a 10-unit short-term stay building
• Position: First
• Location: Grand Falls - Windsor, NL (14,000 pop.)
• LTV: 65%
• Debt service: 1.04:1 on subject, 3.2:1 with personal income
• Reporting: Rent roll
Our borrower was investing in short-term housing to generate

equity and income for retirement. Short term stay properties
often fall outside of traditional lenders’ comfort zones.
Provided funding for both purchase and renovation. Graduated

to conventional lender after renovation was complete.
Private
Private Investing
and Lending
Commercial
Situations
Poor Financial Reporting
• Refinance of a commercial building, tenanted by various companies
owned by the same principal
• Position: First
• Location: Saint John, NB
• LTV: 67%
• Debt service: 1.03:1 on subject, 1.22:1 with personal income
• Reporting: Non-consolidated Notice to Readers (4 Companies)
A long term owner of a historic commercial/residential building decided it was time to renovate,
brining the condition of the premises up to modern standards.
Term loan gave owner enough working capital to complete full renovation and focus on obtaining
tenants. Our strong knowledge of the area gave ability to quickly provide a “yes”.
Private
Private Investing
and Lending
Commercial
Situations
Environmental Remediation
• Environmental remediation of dry cleaner
• Major bank would not renew
• Position: First
• Location: Dartmouth, NS
• LTV: 47%
• Debt service: 1.50:1
Dry cleaner, had fire, insurance rebuilt, when refinancing the bank found environmental damage.
Close to school, needed immediate repair, we understood and funded clean up.
Private
Private Investing
and Lending
Commercial
Situations
Inventory Loan
• Quiet winter real estate market, leaves unsold spec homes
• Rate: 8.99%
• Position: First
• Location: Dundurn, SK
• LTV: 66%
Father/son building company from Saskatchewan, was facing a quiet winter real estate market, leaving
them with several unsold spec homes. They were borrowing $435,000 at 15% from a private Alberta
lender.
Moskowitz Capital was able to lower builder’s cost of capital and free up equity, offering interest only loan
at 8.99%. Greatly helped cash flow and profitability during the slow winter months.
Private
Private Investing
and Lending
Commercial
Situations
TORONTO VANCOUVER KELOWNA
HALIFAX EDMONTON WINNIPEG
SASKATOON
Brian Moskowitz Shawn Rempel Spencer Harris

Ontario & Eastern Canada Western Canada Western Canada
416-781-6500 604-690-3300 604-754-7616
brian@moskowitzcapital.com shawn@moskowitzcapital.com spencer@moskowitzcapital.com
1 866 841 385
deals@moskowitzcapital.com
Head Office
6 Eglinton Ave., E., Suite 301
Toronto, Ontario M4P 1A6
Administration Lic # 11928 Brokerage Lic # 10922 Private Investing and Lending

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Private Investing and Lending

Commercial | Residential | Special Situations

• Term: • Personal guarantee:

• Location: • Due Diligence:

Credit Union / BDC 1%-2% 5% - 10%

Moskowitz Capital 2% - 4% 6.95% - 12.50%

Other Privates 5%-15% 12% - 30%

• Lower E&O rates than ‘private lenders’

Land cost 341,000 Land Facility 225,000

Example Construction Loan

Sale Revenue: $1,150,000

Private Investing and Lending

Land cost 300,000 Land Facility 200,000

Hard Cost 2,450,000 Construction Facility 1,600,000

Interest Cost 150,000 Interest Reserve Facility 150,000

Example Construction Loan

Breakdown Builder Equity 1,050,000

Total $3,000,000 Total $3,000,000

Sale Revenue: $3,673,000

Private Investing and Lending

Our borrower was investing in short-term housing to generate

Provided funding for both purchase and renovation. Graduated

Brian Moskowitz Shawn Rempel Spencer Harris

1 866 841 385

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