NNN Loan, Credit Tenant Financing

NNN loans and credit tenant financing is making a serious comeback. For example, CMBS loans and conventional bank financing is returning to this sub-segment of the business.

We are currently seeking loan requests from $500,000 to $6,000,000, nationwide. Loan to values are generally capped at 65%. We have fixed rates from 1, 3, 5 and 10 years (and longer on select properties) with 20 and 25 year amortization schedules. Most importantly we are getting these loans closed despite the continued credit crisis.

If you are in the process of refinancing or acquiring either a credit tenant or non credit tenant NNN property, with a minimum loan amount of $500,000 we want to work with you. Please take a moment to fill out our preapproval form so that we can come back to you with loan options.

Here are some of the highlights to our NNN financing:

Tenant(s) does not have to be credit rated, can be "mom and pop" tenant.
No minimum vacancy requirements, as long as it cash flows, we are fine.
Fixed rates from 1, 3, 5, 10 to 20 years
20 or 25 year amortization schedules.
Effective interest rates are currently at or below 6% for non credit tenants and better for credit tenant properties.
Loan to value up to 65%. Debt Coverage Ratios as low as 1.25
650 minimum credit score.
1031 exchange experts.

Contact us today regarding your NNN loan or credit tenant financing request. We have the experience and expertise to get you loan closed. For meaningful answers, to your specific situation, please fill out our pre approval form below.

NNN Lenders

Below please find more general information on nnn loans and lenders underwriting parameters.

LTV

Loan to value, meaning the value of the property versus the loan amount, seldom exceed 75% for non credit loan requests. However, for AAA rated tenants, 90% financing is available.

DSCR

Debt Service Coverage Ratio restrictions are typically capped at a relatively low 1.20. Meaning that for every $1.10 of net income the property produces the mortgage payment will not exceed $1.00. Said in another way, after all expenses and mortgage has been paid, the owner needs to net at least $.10 to qualify.

Exceptions can be made with this as well. It is not unheard of for major drug store occupied properties to qualify for DSCR as low as 1.05.

Tenant Evaluation

Much analysis goes into evaluating tenant’s strength. Lenders scrutinize the tenant’s financial position, time left on the current lease and other relevant information. The time remaining on the current lease is of particular concern. Many banks/ lenders will not allow the fixed period of the loan to extend the remaining term of the lease. Some traditional banks will not allow the loan amortization period to exceed the length of the lease.

Property Analysis

Market value and market rent will be evaluated and compared to the subject property. Age, appearance, location, accessibility, and local market conditions, as well as other factors are considered.

Credit Worthiness

The personal credit worthiness of the borrower will often be checked though not as much weight is put on this compared to other transactions, such as owner occupied deals. For corporations, business performance and credit rating will be evaluated.

We offer some of the best NNN loan options in the market - fill out our mini commercial loan application form for more answers.

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NNN Loan, Credit Tenant Financing

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