Webinar Funeral Home Acquisition: Your Opportunity for Growth

Presented by Tim Bridgers and Jim Breaux

For independent funeral home owners looking to expand, acquiring an additional funeral home is an achievable way to grow. In the past, seller financing was the primary funding option, making the transition of independently owned firms difficult.

In this webinar, we looked at the current landscape of the industry and what it takes to acquire a funeral home. Early planning is a must. Learn the steps to take and the financing options available.

Questions about your acquisition or financing? Contact our team today.

Mark Milton – 910.202.6934
Tim Bridgers – 910.685.7446
Jim Breaux – 910.758.2266

Thank you Kates-Boylston for hosting this webinar.

Free Webinar: The Facts About SBA Financing for Self-Storage

Self-Storage Webinar Alert

Join Live Oak Bank‘s Terry Campbell as he explains facts about SBA Financing for the Self-Storage Industry.

Specializing in the Self-Storage space allows Live Oak to offer unique insight into the details of SBA lending for the industry. What are the features of the 7(a) program? What characteristics do we seek in our borrowers?

The Facts about SBA Financing for Self-Storage 
Presented by: Terry Campbell, Live Oak Bank
Date: December 16th at 2 PM EST

Come with your questions for the Q&A session at the end of the presentation!Register today!
Space is limited.Questions about financing? Contact Terry Campbell 
Email | 910.202.6933



Terry Campbell joined the Live Oak Bank Self-Storage Lending Team in 2015 with over 20 years of experience in the industry. Terry previously held various roles with a leading Self-Storage supplier. Starting as a drafter/estimator, he advanced to Vice President of Sales and Marketing and Executive Vice President of Operations. Terry has also served on the Editorial Advisory Board for the ISS Magazine and the Board of the North Carolina Self-Storage Association since its formation. He is a frequent presenter at industry events and trade shows as well as a writer for industry publications.

Click here to register.

How to Ensure a Successful Hotel Construction Project

Before any successful commercial hotel construction project begins, an “A Team” should be assembled: lender, architect, and contractor. The team works together with the owner to ensure a successful project and supports the owner in decision-making. Some critical elements of all construction financings include sufficient capitalization and budget, timelines of the build-out, and the quality and strength of the contractor and architect.

When the lender “builds” the project, a number of questions must be answered. Is the contract inclusive? An experienced lender checks contingency, permits, scope of work. What is and is not included as part of the project? Landscaping, security systems and phone generally are not included in the contract. Is the property properly zoned or does it need to be subdivided? What are the timelines on zoning and permits? What fees must be paid?

Many municipalities require money up front to review drawings, go through the planning process and issue permits. What is the deadline for closing on the land or building? Many times, a lender will provide a “bridge” loan to carry the project until the permit is issued. How many months will construction take? An experienced lender will add additional months into the financing to cover any delays.

Who will be monitoring the construction process? Will qualified inspectors look at the project while it is under construction? It is in the best interest of the owner to have qualified inspectors review the work as it is completed.


In addition, inspections allow for a timely payment schedule to the contractor. How much retainage will be held? Retainage is a percentage of the contract that is held back by the lender on each “draw,” or request for payment. Retainage protects both the owner and the lender from liability as well as ensuring punch-list completion. Once all of the final punch-list items have been completed to the owner’s satisfaction, the retainage is paid to the general contractor.

How is the contractor paid? How does one ensure against mechanics’ liens? Mechanics liens are filed by the subcontractor or general contractor against the project collateral. A qualified lender will have a set payment procedure in place to ensure the contract is met and the contractor is paid in a timely manner. Generally, a contractor will be paid once an unconditional lien release is received by the bank. This ensures that a mechanic’s lien is not filed because the contractor is acknowledging that he is being paid the amount due at the time and agrees not to file a lien.

If a mechanic’s lien is filed, a lender cannot disburse any additional funds until it is cleared. This can cause significant delays to the project. Does the bank require a bond or another type of performance guaranty? If so, there are costs to the owner on these options that need to be included in the project. How does the bank approve a contractor? Lenders who specialize in construction will want to see a statement of the contractor’s qualifications, references and financials for approval of the contractor.

It is essential that a contractor and architect have hotel experience. Without it, the building will be completed to code and general commercial specifications but might not be the building the owner is 100 percent happy with; issues such as flooring, HVAC and insufficient plumbing and electrical can cause cost overruns or a miscommunication between the parties.

Finally, what type of loan will best fit the owner’s needs? Before determining loan type, the lender will need to know what type of hotel is being constructed. A conventional loan is usually the first type of loan requested by an owner. Conventional loans are completely driven by loan to value (LTV) requirements. Conventional loans on hotel projects are generally granted up to 75 percent LTV. This means that if a property appraises for $10 MM, the maximum the bank can lend is $7.5MM. The owner would essentially be required to have a down payment of 25 percent plus all additional soft costs.

If the appraisal came in lower than the $750,000, the owner would be required to put additional money down to make up the difference. Conventional loans for a construction project are allowed a maximum LTV and may or may not include an interest reserve to pay loan payments during the construction period.

Fees also may not be included as part of the project. These loans may or may not be fully amortizing and contain a call feature as part of the permanent financing. When possible, a permanent loan should be in place before starting a construction project.


The SBA 504 loan program will allow the lender to include all costs of construction. The 504 program will allow up to a 90 percent advance rate on multi-use properties and an 85 percent advance on special-use properties. This program is for “hard” assets only and will not include working capital, inventory or short term equipment. The appraisal requirement on the 504 program is for the building-to-value with all costs included except equipment. If the appraisal were to come in low, the same rules apply as to conventional loans in that the difference of the cost versus appraisal will be covered by the owner.

The 7a loan program will cover all of the costs of construction but will also allow other uses to be part of the request, such as working capital and inventory. These loans automatically convert to permanent, are fully amortizing and do not have call features. The 7a loan program also has no minimum equity requirement for an existing practice. The 7a loan is not a loan-to-value-driven program and there is no maximum LTV.

The key to a successful construction loan is to ensure that qualified people are on the team. Although the owner may receive cheaper bids, using professionals who specialize in hotel construction will end up costing less and ensure that the project is completed on budget and on time.

Adiós Prohibition! It’s Time to Expand Your Distillery

The recently passed California Craft Distillers Act of 2015 signals a welcomed end to prohibition era laws and ushers in the same modern growth privileges that wineries and breweries have enjoyed for years. Effective January 1, 2016, the California law gives distilleries the ability to host private tastings and events, directly sell up to three bottles of spirits per consumer per day, and own up to three restaurants.

Similar law changes have sparked substantial distillery growth in states like Washington and North Carolina. This significant and historic shift in regulations will create tremendous expansion opportunities for the California craft distillery industry.

Live Oak Bank offers comprehensive financing to help distillery businesses nationwide expand and reach their full potential. Whether it’s acquiring another distillery, building a new facility, purchasing equipment, or simply attaining working capital, our expert lending team is positioned to meet each distillery’s unique lending needs.

With years of experience in the craft beverage world, we can make sure your growth aspirations are realized. To learn more, please contact a member of our Senior Lending Team located in Santa Rosa, CA, or visit our Wine and Craft Beverage page at www.liveoakbank.com/wcb

Big Splash in the Sonoma County Beer Industry

The guys at HenHouse Brewing in Petaluma, CA, recently finalized plans to move their brewery operations to Santa Rosa, expand their facility, and add a new taproom all thanks to unique financing obtained from Live Oak Bank. The Small Business Administration (SBA) loan of more than $1 million will allow HenHouse to adequately advance its aspirations as a local brewery business.

Senior Loan Officers Tracy Sheppard and Randall Behrens with the bank’s Wine and Craft Beverage division in Santa Rosa, CA, worked with HenHouse on this financing deal that will also increase its annual production by 3,000 barrels per year. Live Oak Bank’s lending model allows a brewery like HenHouse to capitalize on its cash flow equity while offering longer loan terms and low interest rates.

Read more here. You may also visit our Wine and Craft Beverage page at www.liveoakbank.com/wcb.

Dr. Leary Achieves Her Dental Practice Dreams

Customer Spotlight: Dr.Leary

“My desire to become a dentist began in high school, and this desire grew while learning more about dentistry throughout college. I received my BS in Biology from Spelman College and my DDS from The University of North Carolina at Chapel Hill. After graduating from UNC-CH, I completed a one-year general practice residency (GPR) at the Veteran’s Affairs Hospital in Baltimore, MD.

As my career in dentistry began, I was fortunate to work in a pediatric dentistry, corporate dentistry, private practice and finally, to own a practice. In February 2011, I acquired the healthy practice of a retiring dentist who had been in the same location in the community for 41 years and had a great list of generational patients. I am proud to say that my practice remains a true family practice. After a year in my new practice, it was clear that my new acquisition offered immense opportunity. I knew we needed to transition from our three operatory, 1000 square foot practice to a larger and more modern facility to accommodate our growth.

With the knowledge and extraordinary team at Live Oak, my two-year journey ended with the purchase of a 7500 square foot pad and my own 4000 square foot building. A year later, I am happy to say we have continued to grow. Live Oak is still a wonderful support system for my practice, and I am fortunate to have them on my team, a team in which failure is not an option!” – Dr. Leary

Yoga for Dentists

Yoga for Dentists by Dr. David Hennington, DDS via dentaltown.com

Dental professionals face unique physical, mental, and emotional challenges each day. These challenges can create discord and imbalance, especially when they’re combined. Contorting our bodies in order to gain better visibility, sitting for long periods, and even hunching over our computer keyboards can put enormous strain on our musculoskeletal systems. Dealing with fearful patients, uncooperative team members, and the frustrations of running a small business can sometimes become overwhelming and lead to powerful feelings of anxiety, anger, and even depression. Numerous coping strategies are available. One ancient remedy is my favorite and can help alleviate the detrimental effects of these varied stressors. That remedy is the practice of yoga.

Derived from a Sanskrit word meaning to “yoke together, unite, or integrate,” yoga is based on an Indian body of knowledge at least 2,000 to 3,000 years old. As yoga continues to evolve and become increasingly diverse, it has become difficult to find a single, common definition that can be agreed upon by all practitioners. For the purpose of this article, yoga can be defined as the process of harmonizing the body, mind, and breath through the coordination of various physical postures (asanas) with specific breathing and meditation techniques.

It is this synchronization of the breath with the movement of the body that is the basis for many of yoga’s benefits. Breathing in rhythm with the poses is what separates yoga from other physical disciplines. Without coordinated breathing, one is merely stretching. With the breath, one is doing yoga. While a variety of breathing techniques (pranayama) can be used to accomplish specific effects, the one most commonly used is a deep, smooth inhale with an exhale of equal length. For instance, take a deep breath for a count of four seconds. Now exhale for four seconds. Get into a rhythm with that. When you start to feel yourself relaxing, expand the inhale to five seconds, and the exhale to five seconds. Next, try six seconds.

Deep breathing has many physical and mental benefits. These include detoxifying the body, releasing muscle tension, improving focus and an awareness of the present moment, facilitating a feeling of calm, and strengthening the lungs, heart, and immune system. It’s very simple, and very effective.

Physical benefits
As a regular yoga practitioner for more than 15 years, I have experienced firsthand yoga’s many physical benefits. Yoga can be used therapeutically to alleviate existing ailments and can also be employed preventatively. Modern medical research continues to verify the validity of yoga as therapy to improve overall health. Given the wear and tear our bodies experience over time as we practice dentistry, yoga is especially beneficial for the dental professional.

One of the obvious benefits of yoga is improved flexibility, but the postures also build muscle strength. That additional muscle strength, particularly of the critical core musculature, is balanced by the increased flexibility to help improve posture, both when sitting and when moving through space. This, in turn, reduces strain on the back, neck, shoulders, and other muscles and joints, which decreases the practitioner’s chance of developing future degenerative musculoskeletal conditions.

Yoga improves blood flow by increasing your heart rate and delivering more oxygen to your cells, which then function better. While some styles of yoga can get you into an aerobic target range, studies have shown that even those that don’t can improve your cardiovascular conditioning.

Other studies have shown yoga’s positive impact on a wide variety of physiologic functions, including strengthening bones and reducing osteoporosis, lowering blood sugar levels in diabetics, decreasing blood pressure, boosting the functionality of the immune and adrenal systems, and improving sleep. In addition, because yoga is a low-impact practice, it’s gentle on joints that may be weak or compromised. In short, yoga offers a way to counteract or avoid many of the chronic physical conditions that are commonly seen in dental team members.

Continue reading here.

Preparing for the Cycle Shift: 2015 Hotel Business Roundtable

By Matthew Marin via HotelBusiness.com

BALTIMORE—A panel of industry experts discussed the industry’s five-year horizon during the 2015 Hotel Business Owners & Developers Executive Roundtable, “Hot Tactics for Cooler Times: Prepping for the Cycle Shift.”

The executive series was held Aug. 20 at RLHC’s newly opened Hotel RL Baltimore Inner Harbor. Situated at 207 East Redwood St. in downtown Baltimore, the hotel is an adaptive reuse of the former Keyser Building, a 10-story historic property with a cut-stone facade.

The event was sponsored and hosted by RLHC (Red Lion Hotels Corporation). Other sponsors included Arthur J. Gallagher & Co. Real Estate and Hospitality Services and Bissell Big Green Commercial. Stefani C. O’Connor, executive news editor, Hotel Business & managing editor, roundtables, moderated the panel discussion.

The panelists included: Roger Clark, EVP/hotel acquisitions, The LCP Group; Sunny Desai, president/CEO, Desai Hotel Group; Elliott Estes, principal, Woodmont Lodging; Stephen Field, president/chief culture officer, Synergy Hospitality, Inc.; Ron Franklin, president/principal, Pinnacle Hotel Management; Norman K. Jenkins, president/CEO, Capstone Development, LLC; Greg Mount, president/CEO, RLHC; Michael Muir, EVP/hotel lending, Live Oak Bank; Brian Quinn, SVP, RLHC; and Mark Woodworth, senior managing director, CBRE Research – PKF Hospitality Research, a CBRE Co.

Click here for the extensive roundtable coverage featured in the Sept. 7 issue of Hotel Business

Live Oak Bank Wins WealthManagement.com 2015 Industry Award

Live Oak Bank’s Investment Advisory team was named a 2015 Industry Awards winner in the industry disruptor category by WealthManagement.com. The Industry Awards honor outstanding achievements by companies and organizations that support financial advisor success.

Live Oak’s Investment Advisory team was initiated in 2012. Made up of industry experts with more than 50 years of experience, the Investment Advisory team lends to independent advisors seeking funding for mergers and acquisitions, breakaway and tuck-ins (bringing in advisors from brokerage houses), succession, commercial real estate, refinance and working capital. With over $200 Million investment advisor closed loans to date, Live Oak Bank has quickly surpassed every other lender in the industry due to their dedicated team, accessible capital, technology and speed.

“A little over two years ago investment advisory was still an emerging industry focus for Live Oak Bank,” said Jason Carroll, managing director of Live Oak’s Investment Advisory team. “While there have been many milestones in the progression of our business, certainly being the recipient of the industry disruptor award from WealthManagement.com amidst so many distinguished firms is a watershed day. We are indeed honored to be included with this group,” Carroll continues.

The independent financial advice industry is in the midst of rapid consolidation and generational turnover. Today, the average age of a principal in an independent financial practice is 57.1 Advisors are thinking about retirement and seeking buyers internally or externally. Others are looking to scale their practices to create self-sustaining business structures such as partnerships, and using acquisitions and tuck-ins to build their firms. All of these activities require capital, and until now advisors had few places to turn. Live Oak has disrupted banking practices that were preventing the industry’s ability to sustain itself and grow by creating a consultative team that can help its clients with both capital and ongoing business advice.

“Live Oak understands the advisory business and that is a big part of its value to the advisory community. There have been many fits and starts over the past couple of decades when it comes to advisory firms obtaining capital for buyouts and buy-ins—Live Oak has changed the game by becoming a reliable source of credit for a community of business owners who had a need to fill but no source to fill it,” said Mark Tibergien, Chief Executive Officer of Pershing Advisor Solutions.

The WealthManagement.com Industry Awards program has been designed to recognize the companies and organizations that support financial advisor success. More than 300 nominations were submitted for the 2015 Awards, and a panel of judges made up of top names in the industry determined the winners. The bank was nominated because of its focus on financial advisors, an industry whose members have suffered from a lack of access to capital. The winners were announced at a gala reception on September 24, 2015 at the Mandarin Oriental Hotel in New York City.