Commercial Loans

Commercial Financing is underwritten on a case by case basis. Every loan application is unique and evalutated on its own merits. Commerical loans which are related to real property are available for projects up to $800 million. We also have financing for properties and businesses that many lenders will not entertain. Our commercial divison will fund difficult properties for borrowers with difficult to verify income and assets situations who have been unable to obtain traditional commercial mortgage loans.

We will work with you whether you need a commerical loan for a purchase, refinance, cash out, or debt consolidation. We routinely work with Real Estate Investors, Self Employed Individuals, and other borrowers who fall out side traditional lending guidliness. We meet the needs of individuals with difficult to verify income and asset situations. Stated income and Stated asset programs are available.

Commercial Loans

A key component in making an underwriting evaluation is the debt coverage ratio. The DCR is defined as the monthly debt compared to the net monthly income of the investment property. Using a DCR of 1:1.10 a lender is saying that they are looking for a $1.10 in net income for each $1.00 of mortgage payment. Typically they will determine the DCR ratio based on monthly figures, the monthly mortgage payment compared to the monthly net income. The higher the DCR ratio the more conservative the lender. Most lenders will never to below a 1:1 ratio . Anything less then 1:1 ratio will result in a negative cash flow situation raising the risk of the loan for the lender. DCR's are set by the property type and what a lender perceives the risk to be. Lenders are more inclined to use smaller DCR's when evaluating a loan request. Make sure that your are familiar with a lender's DCR policy prior to spending money on an application. Ask them to give you a preliminary review of the investment property that you want to purchase or refinance. Infomation is free, mistakes are not.

Loan to Value

Unlike residential lending, commercial investment properties are viewed more conservatively. Most lenders will require a minimum of 20% equity in the property for the borrower. The remaining 80% can be in the form of a mortgage provided by either a bank or mortgage company. Some commercial mortgage lenders will require more than 20% equity in the property. What a bank/lender will do is subject to their appetite and the quality of the buyer and the property. Loan to value is the percentage calculation of the loan amount divided by value of the property. If you know what a lender's LTV requirements are, you can calculate the loan amount by multiplying the value of the property by the LTV percentage. For businesses less than three years old, personal credit of principlas will be evaluated. This may hold true for longer periods of time for tightly held companies. For corporations, business performace and credit ratings will be evaluated with a proven track record.

A parital list of properties we can arrange Permanent Financing include:

Multi-family/Mixed Use:

• 5+ Units
• Low-rise Apartments
• High-rise Apartments
• Mobile Home Parks
• Mixed-Use
• Commerical
• Office
• Medical
• Retail
• Industrial
• Warehouse
• Self Storage
• Special Use
  

Loan Amounts: Specializing in loans from $100,000- to $800,000,000
Terms: 15, 20 or 30 year
Amortization: 15/15, 20/20, 30/30, and 30/15
Property Types: Multi-Tenant, Single Tenant, and Owner User
Loan Types: Permanent Financing 2with fixed or variable rates for acquistion & refi
Loan to Value (LTV): Up to 80% for Multi-Family and 75% for Commercial Properties
Origination Fees: O to 2 typical
Loan Fee: Typically 0% to 2%

Bridge - Mezzanine - Private Money Financing

• Multi-family
• Office
• Retail
• Industrial
• Warehouse
• Self Storage
• Mobile Home Parks
• Hospitality
• Restaurant
• C- Stores
• Condos
• Subdivisions
• RV Parks
• Land
• Other property types case by case basis
• Gas Stations
• Auto Repair/Auto Body Shops
• Hotels/Motels
• Trailer Parks/Camp Groups
• Hard Money Commercial
• Refinance Acquisition
• Construction
• Parks and Land Development
• Golf/Marina/Resorts
• Rehab/Renovation Land
• SBA
• Developement

Loan Amounts: $100,000 - $800,000,000
Terms: 12 months to 5 Years
Amortization: Interest Only and Fixed
Property Types: Multi-Tenant, Single Tenant, and Owner User
Loan Types: Short term with fixed or variable rates for Bridge Loans
to Stabilization. Acquisition/Repositioning. Construction
Loans, and other hard to finance transactions
considered on an individual basis.
Loan to Value (LTV): up to 70%
Origination Fees: 0 to 2 typical
Loan Fee: Typically 3%

Commercial loans - refinacing, new construction- get the best rates and terms that suit your individual strategies.

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