Commercial Real Estate Loans

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Commercial Mortgage Information

Wholesale Commercial Mortgage Program

This section is for commercial mortgage brokers only. We are broker friendly and you can either stay in complete control of your client’s loan or have us run the transaction. Either way, you would be paid on the HUD or as a referral fee outside of closing, which ever you want. Your fee would be wired, which is 1%, at closing (We can pay you more than 1%, once your volume picks up).

This page is a summary of what we are currently considering and what we can work with you on. If it’s not on this page, than we can’t work with you on it. Please read the below carefully.

If you have a loan you would like to submit, fill out our Preapproval Form. Please do not call, we will email you/call you once we get a chance to review.

PREAPPROVAL FORM

You can get an idea of what our commercial mortgage rates are here.

Full Loan Package List, here (Plus bonus scolding rant). This is what you need to gather to submit a deal.

There are two basic programs that we can work with you on, 1. conventional (either investor or owner user) or 2. the SBA 504 program.

Conventional Owner User

	Multi Use	Semi Generic	Special Use
Loan Amount	$400,000 -$8,000,00	$400,000 - $8,000,000	$400,000 -$8,000,000
Max Loan to Value (Seller Carry allowed up to 90%)	65%	60%	55%
Fixed Periods	90 day, 1, 3, 5, 10 Years	90 day, 1, 3, 5, 10 Years	90 day, 1, 3, 5, 10 Years
Amortization Schedules	15, 20 or 25 Years	15, 20 or 25 Years	15, 20 or 25 Years
Lending Area	50 States, 50,000 town population in surrounding area	50 States, 50,000 town population in surrounding area	50 States, 50,000 town population in surrounding area
Credit/Fico	650 Min, No Previous BK	650 Min, No Previous BK	650 Min, No Previous BK
Experiance	3 Years	3 Years	3 Years
Pre Payment Penality	Depends on fixed period, min 5,4,3,2,1%	Depends on fixed period, min 5,4,3,2,1%	Depends on fixed period, min 5,4,3,2,1%
Min DCR	1.2	1.2	1.2

Borrowers business needs to occupy at least 50% of the subject property to quailify for conventional owner user. If they occupy less than 50% see the Conventional Investment Program below.

*We can go up to 65% loan to value on conventional loans for general purpose properties, such as office, industrial, retail, medical. For special use properties such as restaurants we can go up to 60% loan to value. We need the last years tax returns and year to date financials to hit a minimum DCR of a 1.2. No start ups.

(Check out our commercial mortgage ebook and learn how to calculate Debt Coverage Ratio’s or here to get a 13 page inter connected commercial loan spread sheet, complete with instructions on how to use it, so that you can calculate Global Debt Coverage Ratio's exactly like commercial bankers do.)

Note on refinances, if they have owned the property less than 7 years, we can only use what they paid for it, plus any improvements that they have put into the property(and they’ll have to prove them). NOT the current appraised value... So if they paid $900,000 for it in 2006, and put $100,000 into it in terms of renovations than our value would be $1,000,000, even if it would appraise for $1,500,000. The maximum loan amount, in this example, would be $650,000

NO CASH OUT at this time. The only exception to this is if they want to renovate the subject property, refinance equipment debt or pull out cash to purchase another property, though we would have to finance the acquisition as well.

Virtually all property types are eligible, excluding: gas stations, c stores, multifamily, churches, car washes, auto dealerships, hotels or motels, B & B’s, nightclub, bar or gym.

Have one that fits? Fill out the PRE APPROVAL FORM

Conventional Investment Property Loan

Don’t give up on your investment property loans! We are still getting these closed. Minimum loan amount is $400,000, max $4,000,000. Fixed periods from 1, 3, 5, 10 years with 20 or 25 year amortization schedules.

	Multi Use	Semi Generic	Special Use
Loan Amount	$400,000 -$4,000,00	$400,000 - $4,000,000	$400,000 -$4,000,000
Max Loan to Value (Seller Carry allowed up to 90%)	65%	60%	55%
Fixed Periods	90 day, 1, 3, 5, 10 Years	90 day, 1, 3, 5, 10 Years	90 day, 1, 3, 5, 10 Years
Amortization Schedules	20 or 25 Years	20 or 25 Years	20 or 25 Years
Lending Area	39 States, Excluding: CA, AZ, NV, AK, AL, MS, MI, OH IN, FL, GA. 50,000 town population in surrounding area	39 States, Excluding: CA, AZ, NV, AK, AL, MS, MI, OH IN, FL, GA. 50,000 town population in surrounding area	39 States, Excluding: CA, AZ, NV, AK, AL, MS, MI, OH IN, FL, GA. 50,000 town population in surrounding area
Credit/Fico	650 Min, No Previous BK	650 Min, No Previous BK	650 Min, No Previous BK
Experiance	3 Years	3 Years	3 Years
Pre Payment Penality	Depends on fixed period, min 5,4,3,2,1%	Depends on fixed period, min 5,4,3,2,1%	Depends on fixed period, min 5,4,3,2,1%
Min DCR	1.3	1.3	1.3

We need the last years tax return and year to date financials to hit a minimum DCR of a 1.3. Use 2% for reserves, 5% for management and the lower of actual vacancy or 10%.

On a positive note, NO minimum occupancy level… As long as it cashflows at a 1.3 we’re fine. And leases can be shorter than what you're likely use to. For example, 2 or 3 years left on tenant leases, should still work.

Note on refinances, if they have owned the property less than 7 years, we can only use what they paid for it, plus any improvements that they have put into the property, and they’ll have to be able to prove them… NOT the current appraised value. So if they paid $900,000 for it in 2006, and put $100,000 into it in terms of renovations than our value would be $1,000,000, even if it would appraise for $1,500,000 today. The maximum loan amount, in this example, would be $650,000.

Virtually all property types are eligible, excluding: gas stations, c stores, multifamily, churches, car washes, auto dealerships, hotels or motels, B & B’s, nightclub, bar or gym.

NO CASH OUT at this time. The only exception to this is if they want to renovate the subject property or pull out cash to purchase another property, though we would have to finance the acquisition as well.

Have one that might fit? Fill out the PRE APPROVAL FORM

SBA 504 Loan Program

Go here if you need more general information on the SBA 504 program.

90% financing on purchase or refinances with low, long term fixed rates are the main benefits to this program. Fixed rates up to 25 years. We strongly suggest you lead with the 25 year fixed program as very few community banks are offering this. Most are only doing 3 or 5 year balloons. This program will help distinguish yourself from your competition.

	Multi Use	Semi Generic	Special Use
Loan Amount	$600,000 -$13,000,00	$600,000 - $13,000,000	$600,000 -$12,000,000
Max Loan to Value (Seller Carry allowed up to 90%)	90%	90%	90%
Fixed Periods	90 day, 1, 3, 5, 10 & 25 Years	90 day, 1, 3, 5, 10 & 25 Years	90 day, 1, 3, 5, 10 & 25 Years
Amortization Schedules	15, 20 or 25 Years	15, 20 or 25 Years	15, 20 or 25 Years
Lending Area	50 States, 50,000 town population in surrounding area	50 States, 50,000 town population in surrounding area	50 States, 50,000 town population in surrounding area
Credit/Fico	650 Min, No Previous BK	650 Min, No Previous BK	650 Min, No Previous BK
Experiance	3 Years	3 Years	3 Years
Pre Payment Penality	Depends on fixed period, min 5,4,3,2,1%	Depends on fixed period, min 5,4,3,2,1%	Depends on fixed period, min 5,4,3,2,1%
Min DCR	1.2	1.2	1.2

You get paid on the first loan only.

Borrowers business needs to occupy at least 51% of the subject property. Don’t forget we can often count storage areas or basements in this calculations.

We need the last years tax returns and year to date financials to hit a minimum DCR of a 1.2. No start ups.

Note on refinances, if your borrower has owned the property less than 7 years, we can only use what they paid for it, plus any improvements that they have put into the property. NOT the current appraised value. So if they paid $900,000 for it in 2006, and put $100,000 into it in terms of renovations than our value would be $1,000,000, even if it would appraise for $1,500,000. The maximum loan amount, in this example, would be $900,000

NO CASH OUT at this time. Virtually all property types are eligible, excluding: gas stations, c stores, multifamily, churches, car washes, auto dealerships, hotels or motels, B & B’s, nightclub, bar or gym.

Have a loan request that might fit? Fill out the PRE APPROVAL FORM