Commercial Loans

Conventional Loans
This would be for commercial/investment properties such as: Apartment complexes, office buildings, shopping malls, warehouses, mini-storage, hotels, etc.

Borrowers should have at least the standard 10%-30% down payment in order to qualify. Additionally, the property income should be fully verifiable through borrowers tax returns for the previous 3 years, personal financial statements, credit reports, and business financials. Additionally, borrower needs to show ability to pay back the loan.

Typically, our interest rates are very competitive however vary due to credit ratings and market conditions.

SBA Loans (Small Business Administration)
and SBA Look-a-Like Loans
SBA loans are perfect for many new borrowers . SBA loans are only for commercial real estate properties where the borrower will owner-occupy at least 51% of square footage of the building. We also have what is called an SBA Look-a-Like program that has more aggressive parameters whereby the property only needs to be 20% owner-occupied. The remaining building square footage can be leased to tenants for additional income.

Thus, an owner-occupied restaurant or owner-occupied dry cleaners are properties that would qualify. Conversely a multi-tenant strip mall or a multi-tenant office building where the borrower is not occupying at least 20% of the space, would not qualify.

SBA loans can be used for property acquisitions, expansions, or rate & term refinances. Typically, SBA rates are adjustable and tied to the Prime rate. The most common SBA interest rate is prime + 2.75% over a 20 to 25 year amortization with no balloon. The maximum LTV on an SBA loan is 90% with a 10% down payment. However, some property types or loan sizes will not qualify for 90% LTV, in which case the borrower may need a 20-30% down payment. One of the major strengths of an SBA loan is that we can use the borrower's future income projections when we underwrite the loan. This allows a borrower to buy a property that has a weaker historical income and turn it around. Commercial loans take up to 90 days.

Hard Money loans or Bridge loan
Hard money, private money, private lending, bridge loans, and equity loans typically are variations of the same loan product. Hard money does not mean the funds are hard to obtain. Often our hard money loans are the easiest to obtain. Generally speaking, the industry defines "hard money" as unconventional asset based lending in which the collateral is real estate.

A hard money loan is usually a borrower's loan of last resort, meaning that all of the borrower's other options have been exhausted and due to some significant need or a problem, the only solution is a hard money loan. The typical reasons for needing a hard money loan would be: fast funding need, rough property type, low credit score, foreclosure bailout, bad property location, etc. The following are the important issues concerning Hard Money loans (HMLs):

	HMLs are short-term loans that get a borrower from one point to another. HMLs should not be considered long-term.
	HMLs might be for the purchase of a property, refinancing, foreclosure avoidance, land development, rehab, etc.
	The maximum Loan-to-Value is between 35% and 60%.
	Interest rates are between 10 and 18%, with interest only or amortized payments and a balloon in 1 to 3 years.
	The points charged typically range from 5 to 10, with additional costs for an appraisal, title, and legal costs.
	The key to closing an HML is the PROPERTY. If the property is strong and other parameters fit, the loan should close.
	The benefits of an HML include: closing speed, less paperwork, sellers can hold back seconds, subordinate liens are allowed to remain on title, flexible LTVs, cross collateralization of other real estate permitted, high risk properties accepted, bad credit usually not a problem, recent bankruptcies or foreclosures are ok, these are short term loans usually with no prepayment penalty, etc.
	In order for an HML to close, the borrower must prove how he is going to make the payments and pay off the mortgage.