Systems and methods to automatically generate a return target for a potential real estate deal based on supplemental deal information

• US 20030144945A1
• Filed: 01/31/2002
• Published: 07/31/2003
• Est. Priority Date: 01/31/2002
• Status: Active Grant

• Current Assignee: GE Capital US Holdings, Inc. (General Electric Company)
• Original Assignee: General Electric Capital Corporation (General Electric Company)
• Inventors: Day, Jayne L., Earle, Dan, Opsahl-Ong, Lorinda R.
• Granted Patent: US 7,606,755 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

Systems and methods are provided to automatically generate a return target for a potential real estate deal based on supplemental deal information. According to one embodiment, a collateral type associated with a potential real estate deal is determined. For example, a deal originator may provide this information to deal controller via a communication network. Supplemental deal information associated with the deal is received, and a return target for the deal is then automatically generated based on the collateral type and the supplemental deal information. The return target may represent, for example, a loan spread required for approval of the deal.

Claims

1. A method of generating return targets for potential real estate deals, comprising:

determining a collateral type associated with a potential real estate deal;

receiving supplemental deal information associated with the potential real estate deal; and

automatically generating a return target for the potential real estate deal based on the collateral type and the supplemental deal information.

2. The method of claim 1, wherein the potential real estate deal comprises one of:

(i) a debt deal, and (ii) an equity deal.

3. The method of claim 1, wherein the potential real estate deal comprise a debt deal, said determining further comprises determining loan-to-value information associated with the potential real estate deal, and said generating is further based on the loan-to-value information.

4. The method of claim 1, wherein the potential real estate deal is associated with at least one of:

(i) a commercial real estate property, (ii) a commercial real estate portfolio, (iii) a loan, (iv) a mortgage, (v) a commercial mortgage backed security, (vi) a leveraged equity deal, (vii) a full equity purchase, and (viii) an adjustment to an existing real estate deal.

5. The method of claim 1, wherein the supplemental deal information comprises at least one of:

(i) a risk characteristic, (ii) deal size information, (iii) deal term information, (iv) a number of properties, (v) collateral quality information, (vi) a risk rating, (vii) lockbox information, (viii) sweep trigger information, (ix) rate cap information, (x) customer information, (xi) earn-out information, (xii) subordinated debt information, (xiii) interest reserve information, (xiv) renovation information, (xv) ground lease information, (xvi) portfolio cross-collateralization information, (xvii) credit tenant information, (xviii) annual rollover information, (xix) leverage information, (xx) development deal information, and (xi) partnership structure information.

6. The method of claim 1, wherein the return target comprises at least one of:

(i) a return on investment value, (ii) a net income value, (iii) an internal rate of return value, and (iv) a loan spread value.

7. The method of claim 1, wherein said generating is performed via a rule-based system.

8. The method of claim 7, further comprising:

creating the rule-based system in accordance with a statistical analysis of prior real estate deal information.

9. The method of claim 8, wherein said creating comprises:

creating the rule-based system in accordance with at least one of;

(i) risk characteristics and approved return values for a plurality of prior real estate deals, and (ii) expert information.

10. The method of claim 7, further comprising:

validating the rule-based system with additional prior real estate deal information.

11. The method of claim 1, wherein said generating comprises:

determining a base return target for the potential real estate deal;

increasing the base return target in accordance with at least one risk adder; and

decreasing the base return target in accordance with at least one risk mitigant to generate the return target for the potential real estate deal.

12. The method of claim 1, further comprising:

transmitting an indication of the return target to a deal originator device via a communication network.

13. The method of claim 12, wherein the deal originator device comprises at least one of:

(i) a personal computer, (ii) a portable computing device, and (iii) a telephone device.

14. The method of claim 12, wherein the communication network comprises at least one of:

(i) the Internet, (ii) an intranet, (iii) a public network, (iv) a public switched telephone network, (v) a proprietary network, (vi) a wireless network, and (vii) a local area network.

15. A computer-implemented method of generating target loan spreads for potential commercial real estate debt transactions, comprising:

determining a collateral type associated with a potential commercial real estate transaction;

determining a loan-to-value ratio associated with the potential commercial real estate transaction;

determining a base loan spread in accordance with the collateral type and loan-to-value ratio;

receiving supplemental transaction information from a deal originator device;

increasing the base loan spread in accordance with at least one risk adder;

decreasing the base loan spread in accordance with at least one risk mitigant to generate a target loan spread for the potential real estate deal; and

transmitting an indication of the target loan spread to the deal originator device via a communication network.

16. A deal controller, comprising:

a processor; and

a storage device in communication with said processor and storing instructions adapted to be executed by said processor to;

determine a collateral type associated with a potential real estate deal,

receive supplemental deal information associated with the potential real estate deal, and

automatically generate a return target for the potential real estate deal based on the collateral type and the supplemental deal information.

17. The deal controller of claim 16, wherein said storage device further stores at least one of:

(i) a prior deal database, and (ii) a potential deal database.

18. The deal controller of claim 16, wherein said processor is further coupled to a communication device adapted to communicate with at least one of:

(i) a deal originator device, and (ii) another deal controller.

19. A medium storing instructions adapted to be executed by a processor to perform a method of generating return targets for potential real estate deals, said method comprising:

determining a collateral type associated with a potential real estate deal;

receiving supplemental deal information associated with the potential real estate deal; and

automatically generating a return target for the potential real estate deal based on the collateral type and the supplemental deal information.

20. A method of facilitating origination of real estate deals, comprising:

providing to a deal controller a collateral type associated with a potential real estate deal;

providing to the deal controller supplemental deal information associated with the potential real estate deal; and

receiving from the deal controller an automatically generated return target, the return target being based on the collateral type and the supplemental deal information.