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.
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 ( a dollar of debt payment per dollar of income generated). Anything less then 1:1 ratio will result in a negative cash flow situation raising the risk of the loan for the lender. (We only a few investors that will go below the 1:1 ratio). DCR's are set by the property type and what a lender perceives the risk to be. Today, apartment properties are considered to be the least risky category of investment lending. 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.
Another formula more conservative investors use to determine the loan amount is: Net operating income (Gross income minus expenses) = Net operating income
N.O.I. divide by 90 x 70 = Loan amount (Example)
1,000,000 divide by 90 = 1,111,111 x 70 = $777,777
Call us or submit an application. If it makes common sense, we probably will do the loan. With good compensating factors, we might be able to go out side the box and make an unusual loan work. We want to fund loans!
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 Apartment Builings
High-rise Apartment Buildings
Mobile Home Parks
Mixed-Use
Commercial Properties:
Convenience Stores
Hotels and Motels
Medical
Industrial
Mixed-Use Properties (Res./Retail.Comm.)
Mobile Home Parks
Office Buildings
Office Condos (Owner Occupied or Investment)
Retail Strip Centers
RV Parks
Self StorageUnits
Special Use
Stand-Alone Restaurants
Warehouse
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 with fixed or variable rates for acquistion & refi
Loan to Value (LTV): Up to 80% for Multi-Family and 75% for Commercial Properties
To many to List! Call us now or fill out the short and simple application with the specifics of your situation and start saving NOW!
Loan Amounts: $100,000 - $800,000,000
Terms: 12 months to 5 Years
Amortization: Interest Onlyand 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.
