Sanjay Gupta
Hospitality Asset Sale Specialist and Advisor
Phone 973-244-5997
Fax 973-244-5998

Flag With Times Commercial Realty

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FINANCING FOR COMMERCIAL REAL ESTATE

We also help the principals by way of referrals to prospective lenders, brokers in getting the financing for the following real estate ventures :-

Hotels and Motels (full and limited service)
Resorts
Apartment Buildings
Shopping Malls
Condominiums
Any income producing real estate owned property supporting the purchase 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).

TYPE OF LOANS

New purchase with Recourse, Non-recourse, bridge, mini-perm, construction, forward commitments on new construction, refinancing for cash out, working capital against the equity in the property,


SIZE OF THE LOANS

500,000 up to 5,000,000 with SBA
5,000,000 – 100,000,000 without SBA and jut conventional

The higher limit of 100,000,000 could be increased in case of portfolio loans and/or high end loans

COMPLEXITIES OF REAL ESTATE LOANS

In the get go, most of the times buyer and borrower for the bank often forgets the importance of negotiating with the bank in winning the reduction of fees in terms of origination and lesser interest rate which turns out to be substantial over the life of the loan. Following components needs attention and should be negotiated by experienced broker on behalf of the borrower :-

Fixed rates over the floating rate
Selection of right index i.e. Libor, Prime or Treasury in case of floating loan
Prepayment Penalties ( No. of years and reduction rate over the terms of prepayment penalty)
Banks may be negotiated for the guarantees provided by the borrowers for recourse loans
which matters as normally borrowers 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 mortgage bankers/banks 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


WE CAN HANDLE ALL OF THE ABOVE ON BEHALF OF BORROWER THROUGH OUR REFERRAL BROKERS

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