 Since
you can finance no
more than a four (4)
unit rental income
property with a
residential
mortgage, you will
need a commercial
mortgage to finance
five (5) or more
units, as well as
properties or
projects of a
residential
development,
industrial,
manufacturing, or
similar commercial
nature.
A residential lender
will look primarily
at the borrower, for
the ability to repay
the loan, and
secondarily at the
property, for its
value as collateral.
The concerns of the
commercial lender
are similar, but the
focus is different.
They focus primarily
on the business
(existing or
proposed) for the
ability to repay the
loan, as well as the
real property's
value as
collateral), and
secondarily on the
borrower (credit
score and net worth)
as the personal
guarantor.
While residential
mortgages on a
single family
residence (with a
national average
sale price of
$150,000) can range
from 80% LTV to 100%
LTV, most commercial
mortgages generally
fall in the range of
50% LTV (for land or
"hard-money") to
70%-75%-80% LTV on
purchases,
refinancing, or
construction - with
loans amounts
typically from
$500,000 to
$5,000,000. (A few
commercial lenders
specialize in
smaller loan
amounts, while
others will do
larger amounts -
sometimes
cooperatively with
another lender(s)).
Perhaps the
single-best service
that our commercial
mortgage division
can offer you is
providing you with
reliable quotes on
mortgage financing
from one or more of
our 60 or 70
wholesale commercial
lenders, from around
North America, that
are in our data-base
system. After
entering the data
(from a couple of
years of financials,
the Y-T-D and
digital pictures)
and "normalizing"
the numbers, we
create a preliminary
electronic loan
package which the
system uploads to
each lender
directly. Whether
you want to list a
property for sale -
which is something
we can help you with
- or buy an existing
property and
business, this is an
invaluable,
time-saving service.
As a seller, listing
a property with
"financing already
in place" makes your
property more
attractive to
buyers, especially
since it can be
closed that much
quicker. As a buyer,
knowing that an
underwriter has
reviewed a
preliminary loan
package including
the financials and
cash-flow
projections, and
considered it's
ability to service
the debt, makes the
buying decision that
much easier. Our
commercial financing
director will be
glad to discuss this
in further detail
with you.
Our commercial
lenders will fund
properties and
projects around the
country and in
certain foreign
countries, including
Canada and the
Caribbean. Most are
institutional
lenders, some
represent private
funding sources.
(Rates and terms
vary with their
underwriting: we can
try for
"aggressively
creative" loans for
the "outside the
box" deals, but the
best rates and terms
conform to standard
underwriting
guidelines.)
Types of Commercial
Loans Available:
- Most All
Property Types
- Bad
Credit/Low
Scores
-
Self-employed
Borrowers
- SBA Loans or
Loans to Pay off
SBA Loans
- 90%
Financing, if
Borrower
Occupies 51% of
Building;
otherwise, 80%
- Stated
Income/Stated
Asset * No
Documentation
Loans * Hard
Money Loans
- Special-use,
Single-use,
Difficult or
Unusual
Properties
(Single-Tenant
Restaurants,
- Assisted
Living
Facilities,
Non-Flagship
Hotels/Motels,
Trailer Parks,
Gas Stations,
- Dry
Cleaners,
Bowling Allies,
Golf Courses,
Child Care
Centers, Car
Washes,
- Convenience
Stores)
- Land (50%
LTV)
- Acquisition
& Development,
Construction
Financing (80%
LTC, 75% LTV,
terms up to 3
years)
- Large
Business Lines
of Credit
(minimum:
$500,000)
- Blanket
Loans (Many
Properties, One
Loan)
-
Foreign National
Loans
Please contact
our Commercial
Financing Division
for more information
on Commercial Loan
Options.
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