We also help the principals by way of referrals to prospective lenders, brokers in getting the financing for the following real estate ventures :
- Full Service and Limited Service Hotels & Motels
- Resorts
- Apartment Buildings
- Shopping Malls
- Condominiums
- Any income producing real estate supporting the price
We through the lenders, help our clients in the following manner :
- Preparing Proforma/Projections for successive years to show the growth of business with logical interpretations after analysis of historical operating data
- Putting the package together with all the pertinent documents
- Identifying the right lender for the type of loan required
- SBA Participation – We, depending upon the loan, involve popular SBA loan programs either 7A or 504 placing SBA as second mortgage in the event financing is difficult with just conventional loan based on standard LTV (loan to value ratio).
Types of loans
- Recourse and Non-Recourse
- Bridge Financing
- Mini-perm Financing – short term financing for commercial property usually payable in 3 to 5 years
- Construction Loans
- Forward commitments on new construction
- Refinancing for cash out
- Working capital against the equity in the property
Size of Loans
- $500,000 to $5,000,000 with SBA
- $5,000,000 to $100,000,000 Conventional without SBA
- The higher limit of $100,000,000 could be increased in case of portfolio loans and/or high end loans
Complexities of Commercial Real Estate Financing
From the get go, most of the time the borrower often forgets the importance of negotiating with the banks in winning the reduction of fees in terms of origination and lesser interest rates which turns out to be substantial over the life of the loan. The following components need attention and should be negotiated by an experienced broker on behalf of the borrower :
- Advantages and disadvantages of fixed rates over floating rates
- Selection of right index i.e. Libor, Prime or Treasury in case of floating loan
- Prepayment Penalties (Number of years and reduction rate over the terms of prepayment penalty)
- Banks may negotiate for the guarantees provided by the borrowers for recourse loans which is important as normally borrower’s assets are attached and it is hard to liquidate by the borrower at a later date as a release is required from the bank to liquidate the attached assets
- Many banks and mortgage brokers intend to sell the loans in the secondary markets hence they put lucrative terms for the secondary market buyer which adds the cost of the borrower
WITH TIMES COMMERCIAL REALTY CAN HANDLE ALL OF THE ABOVE ON BEHALF OF BORROWER THROUGH OUR REFERRAL BROKERS