| General Underwriting Guidelines for Income
Producing Properties The following information
is the general criteria that we use on various
property types including multifamily conventional
and private money loans. We can lend on basically any
property if it is whether it is cash flowing or not.
We can use other income from the borrower to support
cash flow or just the property itself. Each
situation is unique and the best way to determine
feasibility is to
contact us to discuss. 1-317-663-3153 -
All commercial properties considered Nationwide.
General Terms:
Eligible
Properties
Any commercial income producing real estate will
be considered nationwide. |
Eligible
Transactions
Acquisitions, refinance, expansion,
rehabilitation, bad credit, partner buy-out, and
cash out transactions are acceptable. |
Transaction
Size
$150,000 to $50 million. |
Loan Rate
All rates are quoted on a case-by-case basis -
please call - 317-663-3153 |
LTV
(Loan-To-Value)
Up to 90% of valuation, depending on
borrower's credit score and property type. |
Second
Mortgages
May be permissible with up to 90% combined
loan-to-value. |
Terms
1 month to 30 year loans with Interest only to
30 year amortizations, unless a bridge or
mezzanine loan is required.
|
Prepayment
Penalty
There may or may not be a prepayment penalty.
This will depend on the type of loan you are
requesting.
|
Ownership
Most legal entities accepted.
|
Recourse
Full to limited recourse to individual borrower
or guarantor required. Exceptions allowed at
lender's discretion with lower LTV loans.
|
Security
First mortgage lien on the subject property(s),
assignment of leases and rents, pledge of
partnership interests, UCC on other collateral.
|
Good
Faith Deposit
There may be a deposit due upon
acceptance of the Letter of Interest or
Conditional Loan Approval, in order to proceed
with the loan. This deposit will cover third
party reports and processing. Any unexpended
balance can be credited at closing.
|
Origination
Fee
Usually 0% to 3% of the loan amount - Depends on
the quality of the borrower and project. |
Third Party
Reports
Appraisal, survey, and environmental insurance
or reports will usually be required. Some existing reports may be
acceptable with pre-approval.
|
Closing
Time
Most loans can be closed in between 30 - 45 days. Bridge
loans can be closed in 2 weeks or less. |
General Underwriting Guidelines for Income
Producing Properties
We have 2 divisions of our company. The
private side in which we have money "in-house" to
lend on make since deals for those of you who fall
outside of bank guidelines for one reason or
another. Little income documentation is
required on our hard money loans and that enables
us to close quickly. The interest rate, LTV,
Term, and cost of the loan will depend on a few
factors including: Strength of the
borrower, location and type of collateral, and
EXIT strategy. (how you will pay it back).
There is a $150,000 minimum loan amount -
There is no maximum loan amount.
Our Capital Markets, "A" paper, or Conduit side
of our company for those of you who are looking
for a competitive bank rate for those income
producing properties such as: Apartments, Self
storage, Mobile home parks, Office complex, Retail
strip centers, Professional tenant, Car wash, and
even Gas stations.
Click here for general guidelines. - Loans
$150,000 and up - Construction - Acquisition -
Refinance
Please feel free to
browse our site for additional information
regarding our commercial loans.
Purchase
Commercial Properties:
General rule is 65%. Exceptions to 80% may be made based if 20
- 30%
cash down payments made by the borrower(s).
Current income characteristics and strength of
borrower may influence LTV. Personal
guarantees typically required. Seller is
allowed to carry a second but, not included in the
10-20% from borrower.
Refinance
- Cash out - Commercial Income Producing Properties:
General rule is 65%. Exceptions to 80% may be made
depending on location, experience, exit, and
current income characteristics Personal guarantees
usually required. Seller is allowed to carry
a second. Typical property types include:
Multifamily - Office - Retail - Warehouse -
Self
Storage - Assisted Care - Car Wash -
Automotive - Gas Stations - Franchise - Mobile
Home Park
Commercial Income producing
properties guidelines - Land -
Income Producing Commercial: Up to 90%CLTV
for purchase on commercial
properties 100,000 - 3,000,000
Acquisition and Development:
65% LTV on
as-is value. Exceptions to 70% may be made with
compensating factors and up to 80% after
completed value.
Purchase
Raw Land:
General rule is 65% on raw
land. Exceptions to 80% may be made based if 25
- 30%
cash down payments made by the borrower(s). Zoning
and exit may influence LTV. We
will allow a seller held 2nd mortgage behind
our first.
Improved Land Purchase: We will lend up to 90%
CLTV on improved land. Zoning, use, stage of improvements,
number of improvements made, may influence LTV.
50-40-10 - Ask for seller participation program
when speaking to a representative.
Lots: Typically 50% LTV on recorded lots,
with exceptions to 70% if on the ocean or
fantastic views on a case-by-case basis.
Rural Property: Will be considered
on a case-by-case basis.
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