Commercial Loan Types in Business

ByZaini
Commercial Loan Types in Business

If you need commercial mortgage financing for apartment complexes, mobile home parks, or construction of these types of properties, my team of professionals has commercial loan programs that will fit just about every need. For those difficult scenarios or if you don’t have the time to wait, we have hard money lenders that will be ready to fund your project with very short turn times.
We have the experience and underwriters to finance your commercial property and offer a wide variety of competitive, innovation loan programs designed for almost any situation.

Types of Commercial Loan for Business

Excellent Credit: We will guarantee you the most competitive funding rates in the industry. Specialized programs include Fixed Rate Mortgages (FRM), Adjustable Rate Mortgages (ARM) and LIBOR based loans that can be customized to best meet your specific lending needs.

Less than Perfect Credit: We have programs designed for almost any credit situation, and we welcome all inquiries. Don’t let past credit problems keep you from pursuing your project.

All credit types are welcome, in fact we specialize in clients with less than perfect credit!

  • Housing Developments
  • Retail, Offices, Warehouses, Self-storage
  • Medical Facilities
  • 5 Units & Up (Apartments)
  • Commercial – Mixed-use properties
  • Restaurants, Taverns, Hotels, Motels
  • Special Purpose/Unique Properties
  • Construction (All Types)
  • Gas Stations
  • Most commercial properties considered!

Our Commercial Loan Services are Extensive, and Include:

  • Debt & Equity Financing
  • Loans for: Purchase, Refinance & Construction
  • High LTV’s, Up To 90%
  • We Finance Owner Occupied Properties
  • B & C Credit Welcome
  • Short Term Mezzanine Financing Available
  • The minimum loan size is $150,000 with no maximum size
  • Amortization 15 to 30 years. (Shorter periods can be customized)
  • Conduit & Mezzanine Loans
  • 1031 Tax Exchanges

Other Properties We Finance

• Apartments
• Condo Conversions
• Condo/Loft/Town home Apartments
• Hi-Rise Apartments
• Residential Developments
• Raw Land Improvement
• Construction Loans
• Multi Tenant Offices
• Single Tenant Offices
• Owner Occupied
• Business Condominium/Co-op
• Mixed Use
• Industrial/Flex
• Industrial/Manufacturing		• Churches
• Warehouse/Distribution
• Mini Storage Facility
• Retail
• Strip with Anchor
• Strip without Anchor
• Regional Malls
• 5 Units & Up (Apartments)
• Medical Clinic
• Hospitals
• Assisted/ Independent Living Facility
• Senior Housing / Congregate Care
• and Many, Many More!

ACQUISITION and DEVELOPMENT LOANS (A&D Loans)

An Acquisition and Development Loan is for the purpose of land acquisition and its ongoing development into a finished property which involves improvements such as on-site and off-site infrastructure improvements for the purpose of completion of finished SFR lots and homes or Commercial Lots. My Team of Professionals can also make available ongoing construction debt and the repayment of the A&D loan – often without an additional closing.

BRIDGE LOANS

Bridge Loans are loans with a short ‘term’ that is used to ‘bridge’ the gap between the need for immediate cash and future financing at a lower interest rate. Bridge Loans are typically backed by hard money using the real estate owned by the borrower. Loan terms can range from several months up to 2-3 years. Bridge Loans are also typically used to take advantage of an opportunity for a Borrower. Bridge Loans can be used for acquisitions and refinancing.

COMMERCIAL (Purchase or Refinance)

Commercial Loans are for the purchase or refinance of commercial property. Commercial property is defined as real estate that is zoned commercial or a parcel of land zoned single family residence with a density of 5 or more livable units on the property. We offer conforming and non-conforming loans. Excellent credit or Bad credit…we have a solution for you. Rates and terms vary depending on the merits of the transaction and the Borrower.

CONDO CONVERSION LOANS

Condo Conversion Loans are for the purpose of taking an existing Multi-family project (Apartments) that are based on rental income from long term or short term lease agreements and converting the use of the property to a For-Sale product in the form of units for sale as SFR Condominium ownership units. Usually the proceeds of the loan are used for re-positioning the property, upgrading units to match competing condominium units in the surrounding market and payoff of the existing underlying long-term debt. Retirement of the Condo Conversion loan comes through principal loan reductions as each unit is sold and a percentage of each sale after sales commissions and closings costs are applied to the principal loan balance. The Condo Conversion Loan can also be structured for the acquisition of an existing property by a new owner for the purpose of condo conversion and sale.

CONSTRUCTION

Construction loans serve the basic purpose of providing the funds for building a commercial project. They usually are interest-only loans until construction is completed, at which point then either the property is sold in units or some form of permanent financing must replace the construction loan.

CONSTRUCTION COMPLETION LOANS

Construction completion loans involve a lender or funding source replacing the financing in a project where construction has already begun. For whatever reason, the current source of funding for construction completion cannot or will not complete the funding of the construction for the project. A new lender and source of funds for completion must be found quickly to provide funds for the purpose of completing the project as planned and as close to target completion dates as possible.

CONSTRUCTION TAKE-OUT

Construction take-out loans are necessary after the construction of a project has been completed. A new loan is necessary to pay off the original construction loan and provide financing for a period of time over which the project’s income or property unit sales activity is stabilized. These types of loans are also known as Mini-perm loans or Term Loans. Occasionally Bridge Loans can also be used for this purpose.

HARD MONEY LOANS

“What is Hard Money?” We define it as fast cash or quick money for properties and projects that come from sources that are not constrained by conventional underwriting guidelines or restraints from the typical market rate lending state of affairs.

There are several reasons that a Borrower may seek Hard Money; a property is difficult to finance such as raw land; Credit problems – poor credit history of the Borrower or the property; a Balloon payment is due and conventional financing in not available to the project; Lack of documentation or property has been non-producing and requires a turn-around operationally and financially – all of which requires quick and ready cash for a solution.

However, a hard money loan should not be the final solution for a property unless the property or project is going to be re-sold quickly or it is a For-sale property such as condos or SFR lots, etc. So, when you do the math a Hard Money loan may not be that expensive or unreasonable.

Hard money loans are available for almost all property types except Adult Entertainment.

EQUITY / 2ND MORTGAGES

An “Equity” or “Second Mortgage” is a mortgage that takes a second lien position to your primary mortgage. These are typically “Cash-Out” transactions. Generally used for property improvements or expansion, or in an owner-occupied scenario, used to supplement working capital or pay down existing debt.

LAND LOANS (Acquisition and Refinance)

Land Loans are typically for investors, developers and builders that have identified a piece of property for future development. Loan to values are typically 50%-60% and we like to see the build-out begin within 24 months. Land Loans are designed on a short term basis and should be taken out by a Permanent Loan or the sale of the property.

MEZZANINE

Mezzanine loans are similar to second mortgages, except a mezzanine loan is secured by the stock of the company that owns the property, as opposed to the real estate.

PERMANENT LOANS (Acquisition and Refinance)

Permanent Loans are mortgages that usually take out a construction loan. Most of the time, Permanent Loans are for income-producing properties that the Borrower wishes to hold for a period of time. Rates and terms are typically much better than a Construction Loan since the property is able to produce income.

STATED INCOME / STATED ASSET

LET’S GET REAL…Sometimes a particular property just doesn’t meet conforming or non-conforming guidelines due to the verifiable income and you, the Borrower, may not have sufficient personal cash flow to incur the new mortgage. This is typical with owner-occupied real estate. You and I both know that many business owners will take as many tax write-offs as possible to show the least amount of taxable income. This is a good, diligent practice but is not helpful when it comes to refinancing or selling the real estate. THE SOLUTION…a Stated Income/ Stated Asset Loan!