Multifamily 5+ Units and Commercial
Investor & Owner Occupied
Available in All 50 States
$100,000 to $500,000
75% LTV Purchase and 70% LTV Refinance
Min FICO 680+, Rates Based on FICO Score
3 yr fixed; 30 yr amortization 4.20% - 4.95%, prepay penalty: 3,3,2
5 yr fixed; 30 yr amortization 5.45% - 6.20%, prepay penalty: 3,3,2,2,1
10 yr fixed; 25 yr amortization 6.50% - 7.25%, prepay penalty: 3,3,2,2,1,1,1,1,1,1
Owner Occupied and Investor Properties
Fixed-rate and prime-based loans with a variety of terms and lines of credit
Eligible Properties
Office Buildings, Retail, Warehouse, Light industrial, Mixed-use, Multifamily (5+ units), Office Condos, Auto Repair, Auto Sales, Convenience Store, Convalescent Home, Assisted Living Facility, Health Club or Gym, Gas stations <10 years old, Self-Storage, Daycare or Preschool, Nursery (horticulture), Theatre, Cold Storage Warehouse, Veterinary Hospital, Ice Skating Rink, Bowling Alley.
Ineligible Properties
1-4 unit dwelling, non-profit owned, dry cleaning plants, time-share properties, mobile home/RV parks, agricultural/forestry/orchards/farms, auto wrecking/auto salvage yards, hospitality (hotels, motels, B&B), vacant buildings (must be 80% occupied), gas stations >10 years old, heavy industrial, vacant/undeveloped land, new construction, properties listed for sale, outside of the U.S., or on more than 40 acres, and chemical plants.
24 Plus Units Multifamily Affordable Low Income Section 8 Program
$500,000 to $5,000,000
Available Nationwide
All Programs with 30 year amortization
Add .50% to rates for loans below $1 million
7 year Fixed – 4.01% PPP 6.5 YM
10 year Fixed – 4.37% PPP 9.5 YM
15 year Fixed – 5.35% PPP 14.5 YM
18 year Fixed – 5.56% PPP 15.0 YM
Forward Commitments - Financing new communities through our Forward Commitment Program. Our indicative forward interest rate for a 30-month commitment is currently 6.44% for loan requests between $1 and $2 million. For more information about this product and loan-specific pricing, please contact ALC.
Multifamily 5+ Units, Mixed Use & Mfg Home Parks
$250K to $25+ million - Available Nationwide
3 Yrs Fixed Balloon
Step Down PPP
4,3,1
Min DSCR
Max LTV Amortization
RATES
$250K - $4.99MM ≥ $5 million
1.20
70-75%
25 - 30
5.75
1.35
65%
25 - 30
4.85
1.55
55%
25 - 30
4.75
5 Yrs Fixed Balloon Step Down or Yield Main. PPP
5,4,3,2,1
Min DSCR
Max LTV Amortization
RATES
$250K - $4.99MM ≥ $5 million
1.20
75%
25 - 30
5.25 3.72
1.35
65%
25 - 30
5.10 3.52
1.55
55%
25 - 30
4.95 3.27
7 Yrs Fixed Balloon
Step Down or Yield Main PPP
5,5,5,4,3,2,1
Min DSCR
Max LTV
Amortization
RATES
$250K - $4.99MM ≥ $5 million
1.20
75-80%
25 - 30
5.97 4.28
1.35
65%
25 - 30
5.85 4.08
1.55
55%
25 - 30
5.76 3.83
10 Yrs Fixed Balloon
Step Down or Yield Main PPP
5, 5, 4, 4, 3, 3, 2, 2, 1, 1
Min DSCR Max LTV Amortization
RATES
$250K-$4.99MM ≥ $5 million
1.20
75-80%
25 - 30
5.25 4.70
1.35
65%
25 - 30
5.15 4.50
1.55
55%
25 - 30
5.00 4.18
Underwriting Highlights
LTV $250K to $4.99 million: Maximum 75% for Purchase, Rate/Term and Cash Out Refinances LTV $5 million+: Maximum 80% for Purchase, Rate/Term and Cash Out Refinances
Credit Score: Middle Score 621+ with large net worth and high liquidity. 680+ mid score.
Construction / Rehab Operating History Need: Required 12 months of stabilized operating history to underwrite a deal coming off construction or substantial rehab (where occupancy fell below stabilization for an extended period) Occupancy Requirements: Minimum 90%+ for minimum of 90 days. Ask your rep about a bridge for more time. Borrower Net Worth: Must be greater than the loan amount
Reserves: 6 months principal and interest
Third Party Reports: We order appraisal. Borrower orders title work and sets up escrow if applicable. DSCR: Minimum Debt Service Coverage Ratio is 1.20+
Recourse & Non Recourse: Recourse standard and non Recourse available in selected markets with carve outs Seasoning for Cash Out Refi’s using Appraised Value: 12 months
Population Requirement: Rural areas allowed.
Non-Profit Borrowing Entities: Allowed
Mixed Use: Multifamily and commercial component
Manufactured Home Parks: Allowed
Bankruptcies and or Foreclosures on credit report: Not allowed
Non recourse self directed IRA borrowers: Are allowed and are assumable
Out of State Borrower: Must be seasoned investor in the area the new property is being purchased if purchasing out of State property along with a seasoned management company. Or, max LTV 65% with a 1.35 min DSCR on the property along with a seasoned management company
Construction and Rehabilitation Loans Offered: Ask for details
Commercial
Investor & Owner Occupied
$100K to $10 million
Seller Carry Back or Other Second Allowed up to 20%
Minimum DSCR 1.40+ 1% Loan Assumability Minimum 80%+ Occupancy
Stabilized for min of 12 months Minimum Score 650+
Term/Amortization 20/20 Investor or 25/25 Owner Occupied - No Balloon Payment
Tier I Multi-Use - $100K to $4 million 65% LTV or max 80% CLTV
Industrial, Manufacturing, Office Buildings, Office Condo, Single Tenant
Medical Office, Medical Condo, Retail, Anchored Strip Malls, Office/Warehouse
Tier II Semi-Generic - $100K to $3 million 60% LTV or max 80% CLTV
Automotive Service, Grocery Stores, Funeral Homes, Tire and Brake Centers
Tier II Special Use - $100K to $3 million 55% LTV or max 75% CLTV
Restaurants (Select Fast Food No Sit Down), Assisted Living, Oil/Lube Centers
School/Day Care, Self-Storage, Airplane Hangers (fee simple only)
Special
Programs Multi-Use Semi Generic Use
Prime Plus – Quarterly Recast
3.75% 4.25%
4.50%
90 day LIBOR
3.54% 4.04%
4.25%
1 yr LIBOR Swap/w Recast
4.09% 4.59%
4.84%
3 yr LIBOR Swap/w Recast
3.58% 4.08%
4.33%
5 yr LIBOR Swap/w Recast
3.98% 4.48%
4.73%
10 yr LIBOR Swap/w Recast
5.19% 5.69%
5.94%
NOTES:
1) Borrower may make additional principal reductions without penalty up to 20% of the original note balance annually
2) Rate locks beyond 30 days are available up to 60 days with a deposit of $3,500 or .75% of the permanent loan amt
3) Floor Rate: Fixed 6.25%
4) No ground leases
5) Recast – At no cost rate is rolled over to new recast fixed rate based on fixed 1, 3 or 5 year LIBOR Swap index plus a margin. Borrower can eventually own the property with one closing.
6) Refinances of owner occupied add 0.25% to the rate on all Tiers.
7) Rate buy downs available. Reduce rate .25% for 1.00% fee of loan amount.
8) Cash-out refinances: In the current market, pulling cash-out of a property is difficult, particularly if we are at our top LTVs of 50-60%. Paying off a lot of personal debt for the principals/company just to have it transferred to our loan isn’t viewed as the best use for cash. That said, we can consider cash-out to purchase another property; purchasing equipment with a long economic life for the subject property or cash for improvements to the subject property may all be OK if we control the funds in escrow. Further, we seldom give cash-out on any investment property held less than 5 years in the current market.
SBA 504
This is a fixed rate, long term program small businesses can use to purchase
fixed assets, including land and improvements, new facilities, existing buildings,
machinery and equipment. The American Recovery and Reinvestment Act of
2009 made some permanent changes to the 504 program including allowing
borrowers to refinance existing debt.
$100K to $10 million
Purchase to Maximum 90% LTV
Owner Occupied (50%+), Owner User Properties
Gas Stations, Office Warehouses, Office Condos, Child Day Care, Hotels/Motels,
Liquor Stores, Franchised Restaurant and Assisted Living
We’ll consider any real estate transaction that is 50% Owner Occupied
Purchase ONLY No Refinances No ground lease No Balloon Payment 650+ mid score
Fixed Rate loans available to 90% LTV depending on property type
20 or 25 Years Term with 20 or 25 Years Amortization depending on property type
Special
Programs Multi-Use Semi Generic Use
Prime Plus – Quarterly Recast
3.75% 4.25%
4.50%
90 day LIBOR
3.54% 4.04%
4.25%
1 yr LIBOR Swap/w Recast
4.09% 4.59%
4.84%
3 yr LIBOR Swap/w Recast
3.58% 4.08%
4.33%
5 yr LIBOR Swap/w Recast
3.98% 4.48%
4.73%
10 yr LIBOR Swap/w Recast
5.19% 5.69%
5.94%
Estimated CDC Second Mortgage up to 40% LTV Rates
20 years fixed 4.721% - 5.18%
Pre-Payment Penalty
Yield Maintenance: 10 year declining starts around 7% and goes down evenly (about .8%) per year
SBA 7(a)
Finances land and building, renovations and new construction, working capital, machinery and equipment,
furniture and fixtures, leasehold improvements and debt refinancing.
$250K to $5 million
Small business term loans for the following uses and purposes:
· Owner occupied real estate purchases
· Equipment purchases
· Business Acquisitions - Franchises
· Partner buy-outs
· Permanent working capital
· Furniture, fixtures and leasehold improvements
· Refinance existing debt
· Restaurants
· Gas Stations
· Hotels/Motels
Term: 7 to 25 years fully amortizing
Rates: >15 years Prime base plus 2.75% = 6.00%
<15 years Prime base plus 2.50% = 5.75%
Minimum Multi Purpose – 10% Cash Special Use – 15%
Injection: All Other – 20%
Prepayment None on loans less than 15 years; step down 5,3,1 for loans more than 15 Penalty years
Fees: Can be rolled into loan; amount depends on guaranteed portion of loan
Origination: 1% paid to brokers
Credit Score: 680+
Guaranty: All 20% or greater owners
Collateral: Business assets; personal assets as necessary
If the collateral involved is not sufficient and/or if deemed necessary we collateralize the borrower’s residence.
Small Motel Program
$250K to $4 million
Available Nationwide
Purchases and Refinances
LTV: 75% Max
Rates: 7.50% to 8.25% Rate
Terms: 10 year Fixed
20 year Amortization
Prepay Penalty: 5 Year Prepay
Origination: 1% paid to brokers
Credit Score: 680+
Guaranty: All 20% or greater owners
Church Loan Program
Eligible Transactions: Acquisition or refinance; rehabilitation; ground up new construction.
Minimum 100+ parishioners
Must have at least a 3 year operating history.
3 yr trailing profits at whatever new DSCR would be on a 8.5% constant
(No start-ups) Must be a 501c3 Organization. Church must be tax exempt and not for profit entity.
Eligible Properties: Church structures including sanctuary, parsonage, fellowship halls and all other church
owned properties, which may also include commercial, office, retail, residential, apartment, student dormitory housing, day care, student education schools on site or affiliated with church, senior centers, day school, night school, church recreation centers are all approved uses. The net revenue derived from the commercial component is added to other church revenue in order to establish a debt service coverage ratio. The church component should occupy 25% or more of the property on a per square foot basis.
Transaction Size: $250,000 and up.
Non-Recourse: No personal guarantees for routine loan transactions. If the church has credit or other
transaction underwriting issues, the loan may require personal guarantees from creditworthy members for a limited time period and then exculpated after church income achievement is verified for a 12 month trailing basis.
Loan Fee(s): 1% origination.
Third Party Reports: MAI Appraisal with Appraisal Review performed internally. CLC orders all 3rd party
reports.
LTV : 75% on purchase of church and related facilities
70% on refinance depending upon age and condition of improvements.
Interest Rate: 7.50% for 10 & 15 yr. 10 yr 25 yr amortization, 15 yr self liquidating loan
6.75% for 5 & 7 yr loans w/ 20 yr amortization.
Loan Term: 5, 7 or 10 yr loans w/20-25 yr amortization & 15 yr loans with 15 yr self liquidating
amortization schedule.
15 year loan term with no balloon.
Amortization: 15 yr self liquidating or 20 to 25 years depending upon program selected.
Debt to Income: Loan amount should not exceed 3.5 times church net worth as supported by accountant
statements.
DSCR: Total debt service should not exceed 35% of last 12 months gross income.
Prepayment Penalty Step down 5%, 4%, 3%, 2%, 1% declining over initial 5 yr term and
no prepay thereafter.
Closing time: Typically 30 - 45 business days from completed Application
Closing within 10 days of commitment fee check clearing.
Lender/Borrower Protocol: Conference call required prior to issuing a letter of interest with Underwriter, Borrower and Broker if applicable.
Assumable: Yes for 1% to a qualified borrower.
Bond Structured Financing
Bond financing is the "new" funding mechanism for large commercial real estate projects and features loans based upon rated securities. For “A” properties secured by letters of credit (LOC) which provide the credit enhancement for an “A” or better rating. Bonds access funds from private and institutional investors through the sale of a security. Due to the “lower floater” interest rates, the underwriting risk of our Investment Banker’s bond guidelines can be more flexible than Banks, the CMBS market, Insurance Companies, Pension Funds or any other conventional lenders which feature higher interest rates and debt service.
Features:
· $10 million to $500 million. Down to $5 million on case by case
· Western U.S. primarily, and nationwide considered on a case-by-case basis
· Purchases, Refinances and Construction/Perm loans
· Up to 85% financing for tax exempt non profit borrowers
· Up to 75% financing for conventional projects
· Multifamily, Senior Housing, Student Housing, Assisted Living, Charter Schools
· Tax exempt bonds for municipalities, public related service providers and hospitals
· Funds just missed FNMA, FHLMC and FHA/HUD loans
Basic Underwriting Guidelines:
· 75% LTV (Stabilized value for construction projects)
· Typically 85% LTC
· 1.10X DSCR at the underwriting “capped” interest rate using a 30-year amortization To submit for review:
Initially, we need adequate detailed information to create an executive underwriting summary about the borrower and project for our executive committee’s review so that an expression of interest can be determined concerning the merits of the financing request and possible future relationship business. The list below is a guideline to follow. If we move forward with your request, a thorough underwriting package will be required.
Existing Properties:
· Executive Summary
· Property Photos, interior and exterior for existing properties
· Current 2 years taxes on entity and or extension
· Credit report for principals with 20% or more ownership
· Current property Balance Sheet & latest interim Income Statement dated within 60 days
NOTICE: CMI is NOT a United States Securities Dealer or Broker or U.S. Investment Adviser.
CMI is a Consultant and makes no warranties or representations as to the Buyer, Seller or Transaction.
Bond Structured Financing
continued
· Current personal financial statement for any principal with 20% or more ownership
· Current two years personal tax returns for principals with 20% or more ownership
· Current Rent Roll
· Management Company info
· Title report
Construction for proposed projects:
· Pro-forma Income & Expense Statement
· Sources and Uses of all cash equity
· Hard and soft cost summary with detailed construction cost breakdown
· Construction and Draw Schedule
· Entitlement information
· Project renderings and site plan
· Developer resume’
· Contractor information with references
· Completion/Performance Bond information
· Appraisal
· Feasibility & Market Study
· Management Company info
· Copy of title report for acquired site
· Timing for municipality approval of plans and issuance of building permit
NOTICE: CMI is NOT a United States Securities Dealer or Broker or U.S. Investment Adviser.
CMI is a Consultant and makes no warranties or representations as to the Buyer, Seller or Transaction.
Hedge Fund Program
Bridge, Turn-Around, Stabilization
Loan Amounts: $15 million - $550 million
Loan Term: 2 – 6 years
Recourse: Typically, most deals are recourse deals.
Prepayment: Loans generally may be prepaid at any time after 2 years without penalty. Prepayment penalties may be required for shorter terms.
Loan to Value: Loan amounts can be up to 75% of the Bank’s approved appraised value.
Loan Rates: Rates start at Wall Street Journal Prime + 3%, 6.25% depending on the collateral type and risk. Loans are generally interest only and highly leveraged loans may contain an equity kicker or additional fees.
Origination Fee: 2%
Loan Collateral: Land, land development loans and other property types (e.g., hotels and special purpose properties) whose special circumstances disqualify them from lowest-rate financing. Can be used as a “bridge loan” on traditional multi-family, retail and office properties that need to be “turned-around” before they can qualify for conventional loan underwriting.
Construction: Considered in Texas.
Loan Flexibility: We strive to tailor a loan structure to fit your deal, unlike so many other institutions that require your deal to fit their structure.
Hard Money Loan Parameters
Finish Construction, Bridge and Rehabilitation
Lending Parameters Overview:
•
Interest Rates:
10% - 14%
•
Amortization:
Interest only
•
LTV:
Up to 65% on income producing properties
•
CLTV:
Up to 85% on income producing properties•
Origination Fee:
3% - 5% taken at closing from the loan proceeds•
Loan Terms:
1 - 3 years (Exit Strategy Required)
•
Closing times:
3 to 4 weeks
•
Loan Size:
$500K to $100 million
•
Credit:
Greater than 600 mid score on case by case basis
•
Allow Subordinate Financing:
Mezzanine, Cross Collateral, Seller held Seconds, etc.•
Cash Down:
Borrower needs at least 30% plus cash into project
•
Bridge and Rehabilitation
Max LTV to 70%
Flagged Hotel:
•
Bridge:
Flagged Hotels (up to 50% – 55% Bridge or Rehab)
•
Apartment Buildings
(up to 65% LTV Bridge)
•
Mixed-use
(up to 65% LTV Bridge)
•
Light Industrial
(up to 65% LTV Bridge)
•
Warehouses
(up to 65% LTV Bridge)
•
Office Buildings
(up to 65% LTV Bridge)
•
Grocery Anchored Retail
(up to 65% LTV Bridge)
•
Student Housing
(up to 65% LTV Bridge)
•
Non-Flagged Hotels and Motels
(up to 55% LTV Bridge)
•
Fractured Condos (limited funds)
(up to 50% LTV Bridge)
Finish Construction or Rehabilitation:
· Finish Construction or Rehabilitation of above properties (up to 65% LTC)
Investor & Owner Occupied
Available in All 50 States
$100,000 to $500,000
75% LTV Purchase and 70% LTV Refinance
Min FICO 680+, Rates Based on FICO Score
3 yr fixed; 30 yr amortization 4.20% - 4.95%, prepay penalty: 3,3,2
5 yr fixed; 30 yr amortization 5.45% - 6.20%, prepay penalty: 3,3,2,2,1
10 yr fixed; 25 yr amortization 6.50% - 7.25%, prepay penalty: 3,3,2,2,1,1,1,1,1,1
Owner Occupied and Investor Properties
Fixed-rate and prime-based loans with a variety of terms and lines of credit
Eligible Properties
Office Buildings, Retail, Warehouse, Light industrial, Mixed-use, Multifamily (5+ units), Office Condos, Auto Repair, Auto Sales, Convenience Store, Convalescent Home, Assisted Living Facility, Health Club or Gym, Gas stations <10 years old, Self-Storage, Daycare or Preschool, Nursery (horticulture), Theatre, Cold Storage Warehouse, Veterinary Hospital, Ice Skating Rink, Bowling Alley.
Ineligible Properties
1-4 unit dwelling, non-profit owned, dry cleaning plants, time-share properties, mobile home/RV parks, agricultural/forestry/orchards/farms, auto wrecking/auto salvage yards, hospitality (hotels, motels, B&B), vacant buildings (must be 80% occupied), gas stations >10 years old, heavy industrial, vacant/undeveloped land, new construction, properties listed for sale, outside of the U.S., or on more than 40 acres, and chemical plants.
24 Plus Units Multifamily Affordable Low Income Section 8 Program
$500,000 to $5,000,000
Available Nationwide
All Programs with 30 year amortization
Add .50% to rates for loans below $1 million
7 year Fixed – 4.01% PPP 6.5 YM
10 year Fixed – 4.37% PPP 9.5 YM
15 year Fixed – 5.35% PPP 14.5 YM
18 year Fixed – 5.56% PPP 15.0 YM
Forward Commitments - Financing new communities through our Forward Commitment Program. Our indicative forward interest rate for a 30-month commitment is currently 6.44% for loan requests between $1 and $2 million. For more information about this product and loan-specific pricing, please contact ALC.
Multifamily 5+ Units, Mixed Use & Mfg Home Parks
$250K to $25+ million - Available Nationwide
3 Yrs Fixed Balloon
Step Down PPP
4,3,1
Min DSCR
Max LTV Amortization
RATES
$250K - $4.99MM ≥ $5 million
1.20
70-75%
25 - 30
5.75
1.35
65%
25 - 30
4.85
1.55
55%
25 - 30
4.75
5 Yrs Fixed Balloon Step Down or Yield Main. PPP
5,4,3,2,1
Min DSCR
Max LTV Amortization
RATES
$250K - $4.99MM ≥ $5 million
1.20
75%
25 - 30
5.25 3.72
1.35
65%
25 - 30
5.10 3.52
1.55
55%
25 - 30
4.95 3.27
7 Yrs Fixed Balloon
Step Down or Yield Main PPP
5,5,5,4,3,2,1
Min DSCR
Max LTV
Amortization
RATES
$250K - $4.99MM ≥ $5 million
1.20
75-80%
25 - 30
5.97 4.28
1.35
65%
25 - 30
5.85 4.08
1.55
55%
25 - 30
5.76 3.83
10 Yrs Fixed Balloon
Step Down or Yield Main PPP
5, 5, 4, 4, 3, 3, 2, 2, 1, 1
Min DSCR Max LTV Amortization
RATES
$250K-$4.99MM ≥ $5 million
1.20
75-80%
25 - 30
5.25 4.70
1.35
65%
25 - 30
5.15 4.50
1.55
55%
25 - 30
5.00 4.18
Underwriting Highlights
LTV $250K to $4.99 million: Maximum 75% for Purchase, Rate/Term and Cash Out Refinances LTV $5 million+: Maximum 80% for Purchase, Rate/Term and Cash Out Refinances
Credit Score: Middle Score 621+ with large net worth and high liquidity. 680+ mid score.
Construction / Rehab Operating History Need: Required 12 months of stabilized operating history to underwrite a deal coming off construction or substantial rehab (where occupancy fell below stabilization for an extended period) Occupancy Requirements: Minimum 90%+ for minimum of 90 days. Ask your rep about a bridge for more time. Borrower Net Worth: Must be greater than the loan amount
Reserves: 6 months principal and interest
Third Party Reports: We order appraisal. Borrower orders title work and sets up escrow if applicable. DSCR: Minimum Debt Service Coverage Ratio is 1.20+
Recourse & Non Recourse: Recourse standard and non Recourse available in selected markets with carve outs Seasoning for Cash Out Refi’s using Appraised Value: 12 months
Population Requirement: Rural areas allowed.
Non-Profit Borrowing Entities: Allowed
Mixed Use: Multifamily and commercial component
Manufactured Home Parks: Allowed
Bankruptcies and or Foreclosures on credit report: Not allowed
Non recourse self directed IRA borrowers: Are allowed and are assumable
Out of State Borrower: Must be seasoned investor in the area the new property is being purchased if purchasing out of State property along with a seasoned management company. Or, max LTV 65% with a 1.35 min DSCR on the property along with a seasoned management company
Construction and Rehabilitation Loans Offered: Ask for details
Commercial
Investor & Owner Occupied
$100K to $10 million
Seller Carry Back or Other Second Allowed up to 20%
Minimum DSCR 1.40+ 1% Loan Assumability Minimum 80%+ Occupancy
Stabilized for min of 12 months Minimum Score 650+
Term/Amortization 20/20 Investor or 25/25 Owner Occupied - No Balloon Payment
Tier I Multi-Use - $100K to $4 million 65% LTV or max 80% CLTV
Industrial, Manufacturing, Office Buildings, Office Condo, Single Tenant
Medical Office, Medical Condo, Retail, Anchored Strip Malls, Office/Warehouse
Tier II Semi-Generic - $100K to $3 million 60% LTV or max 80% CLTV
Automotive Service, Grocery Stores, Funeral Homes, Tire and Brake Centers
Tier II Special Use - $100K to $3 million 55% LTV or max 75% CLTV
Restaurants (Select Fast Food No Sit Down), Assisted Living, Oil/Lube Centers
School/Day Care, Self-Storage, Airplane Hangers (fee simple only)
Special
Programs Multi-Use Semi Generic Use
Prime Plus – Quarterly Recast
3.75% 4.25%
4.50%
90 day LIBOR
3.54% 4.04%
4.25%
1 yr LIBOR Swap/w Recast
4.09% 4.59%
4.84%
3 yr LIBOR Swap/w Recast
3.58% 4.08%
4.33%
5 yr LIBOR Swap/w Recast
3.98% 4.48%
4.73%
10 yr LIBOR Swap/w Recast
5.19% 5.69%
5.94%
NOTES:
1) Borrower may make additional principal reductions without penalty up to 20% of the original note balance annually
2) Rate locks beyond 30 days are available up to 60 days with a deposit of $3,500 or .75% of the permanent loan amt
3) Floor Rate: Fixed 6.25%
4) No ground leases
5) Recast – At no cost rate is rolled over to new recast fixed rate based on fixed 1, 3 or 5 year LIBOR Swap index plus a margin. Borrower can eventually own the property with one closing.
6) Refinances of owner occupied add 0.25% to the rate on all Tiers.
7) Rate buy downs available. Reduce rate .25% for 1.00% fee of loan amount.
8) Cash-out refinances: In the current market, pulling cash-out of a property is difficult, particularly if we are at our top LTVs of 50-60%. Paying off a lot of personal debt for the principals/company just to have it transferred to our loan isn’t viewed as the best use for cash. That said, we can consider cash-out to purchase another property; purchasing equipment with a long economic life for the subject property or cash for improvements to the subject property may all be OK if we control the funds in escrow. Further, we seldom give cash-out on any investment property held less than 5 years in the current market.
SBA 504
This is a fixed rate, long term program small businesses can use to purchase
fixed assets, including land and improvements, new facilities, existing buildings,
machinery and equipment. The American Recovery and Reinvestment Act of
2009 made some permanent changes to the 504 program including allowing
borrowers to refinance existing debt.
$100K to $10 million
Purchase to Maximum 90% LTV
Owner Occupied (50%+), Owner User Properties
Gas Stations, Office Warehouses, Office Condos, Child Day Care, Hotels/Motels,
Liquor Stores, Franchised Restaurant and Assisted Living
We’ll consider any real estate transaction that is 50% Owner Occupied
Purchase ONLY No Refinances No ground lease No Balloon Payment 650+ mid score
Fixed Rate loans available to 90% LTV depending on property type
20 or 25 Years Term with 20 or 25 Years Amortization depending on property type
Special
Programs Multi-Use Semi Generic Use
Prime Plus – Quarterly Recast
3.75% 4.25%
4.50%
90 day LIBOR
3.54% 4.04%
4.25%
1 yr LIBOR Swap/w Recast
4.09% 4.59%
4.84%
3 yr LIBOR Swap/w Recast
3.58% 4.08%
4.33%
5 yr LIBOR Swap/w Recast
3.98% 4.48%
4.73%
10 yr LIBOR Swap/w Recast
5.19% 5.69%
5.94%
Estimated CDC Second Mortgage up to 40% LTV Rates
20 years fixed 4.721% - 5.18%
Pre-Payment Penalty
Yield Maintenance: 10 year declining starts around 7% and goes down evenly (about .8%) per year
SBA 7(a)
Finances land and building, renovations and new construction, working capital, machinery and equipment,
furniture and fixtures, leasehold improvements and debt refinancing.
$250K to $5 million
Small business term loans for the following uses and purposes:
· Owner occupied real estate purchases
· Equipment purchases
· Business Acquisitions - Franchises
· Partner buy-outs
· Permanent working capital
· Furniture, fixtures and leasehold improvements
· Refinance existing debt
· Restaurants
· Gas Stations
· Hotels/Motels
Term: 7 to 25 years fully amortizing
Rates: >15 years Prime base plus 2.75% = 6.00%
<15 years Prime base plus 2.50% = 5.75%
Minimum Multi Purpose – 10% Cash Special Use – 15%
Injection: All Other – 20%
Prepayment None on loans less than 15 years; step down 5,3,1 for loans more than 15 Penalty years
Fees: Can be rolled into loan; amount depends on guaranteed portion of loan
Origination: 1% paid to brokers
Credit Score: 680+
Guaranty: All 20% or greater owners
Collateral: Business assets; personal assets as necessary
If the collateral involved is not sufficient and/or if deemed necessary we collateralize the borrower’s residence.
Small Motel Program
$250K to $4 million
Available Nationwide
Purchases and Refinances
LTV: 75% Max
Rates: 7.50% to 8.25% Rate
Terms: 10 year Fixed
20 year Amortization
Prepay Penalty: 5 Year Prepay
Origination: 1% paid to brokers
Credit Score: 680+
Guaranty: All 20% or greater owners
Church Loan Program
Eligible Transactions: Acquisition or refinance; rehabilitation; ground up new construction.
Minimum 100+ parishioners
Must have at least a 3 year operating history.
3 yr trailing profits at whatever new DSCR would be on a 8.5% constant
(No start-ups) Must be a 501c3 Organization. Church must be tax exempt and not for profit entity.
Eligible Properties: Church structures including sanctuary, parsonage, fellowship halls and all other church
owned properties, which may also include commercial, office, retail, residential, apartment, student dormitory housing, day care, student education schools on site or affiliated with church, senior centers, day school, night school, church recreation centers are all approved uses. The net revenue derived from the commercial component is added to other church revenue in order to establish a debt service coverage ratio. The church component should occupy 25% or more of the property on a per square foot basis.
Transaction Size: $250,000 and up.
Non-Recourse: No personal guarantees for routine loan transactions. If the church has credit or other
transaction underwriting issues, the loan may require personal guarantees from creditworthy members for a limited time period and then exculpated after church income achievement is verified for a 12 month trailing basis.
Loan Fee(s): 1% origination.
Third Party Reports: MAI Appraisal with Appraisal Review performed internally. CLC orders all 3rd party
reports.
LTV : 75% on purchase of church and related facilities
70% on refinance depending upon age and condition of improvements.
Interest Rate: 7.50% for 10 & 15 yr. 10 yr 25 yr amortization, 15 yr self liquidating loan
6.75% for 5 & 7 yr loans w/ 20 yr amortization.
Loan Term: 5, 7 or 10 yr loans w/20-25 yr amortization & 15 yr loans with 15 yr self liquidating
amortization schedule.
15 year loan term with no balloon.
Amortization: 15 yr self liquidating or 20 to 25 years depending upon program selected.
Debt to Income: Loan amount should not exceed 3.5 times church net worth as supported by accountant
statements.
DSCR: Total debt service should not exceed 35% of last 12 months gross income.
Prepayment Penalty Step down 5%, 4%, 3%, 2%, 1% declining over initial 5 yr term and
no prepay thereafter.
Closing time: Typically 30 - 45 business days from completed Application
Closing within 10 days of commitment fee check clearing.
Lender/Borrower Protocol: Conference call required prior to issuing a letter of interest with Underwriter, Borrower and Broker if applicable.
Assumable: Yes for 1% to a qualified borrower.
Bond Structured Financing
Bond financing is the "new" funding mechanism for large commercial real estate projects and features loans based upon rated securities. For “A” properties secured by letters of credit (LOC) which provide the credit enhancement for an “A” or better rating. Bonds access funds from private and institutional investors through the sale of a security. Due to the “lower floater” interest rates, the underwriting risk of our Investment Banker’s bond guidelines can be more flexible than Banks, the CMBS market, Insurance Companies, Pension Funds or any other conventional lenders which feature higher interest rates and debt service.
Features:
· $10 million to $500 million. Down to $5 million on case by case
· Western U.S. primarily, and nationwide considered on a case-by-case basis
· Purchases, Refinances and Construction/Perm loans
· Up to 85% financing for tax exempt non profit borrowers
· Up to 75% financing for conventional projects
· Multifamily, Senior Housing, Student Housing, Assisted Living, Charter Schools
· Tax exempt bonds for municipalities, public related service providers and hospitals
· Funds just missed FNMA, FHLMC and FHA/HUD loans
Basic Underwriting Guidelines:
· 75% LTV (Stabilized value for construction projects)
· Typically 85% LTC
· 1.10X DSCR at the underwriting “capped” interest rate using a 30-year amortization To submit for review:
Initially, we need adequate detailed information to create an executive underwriting summary about the borrower and project for our executive committee’s review so that an expression of interest can be determined concerning the merits of the financing request and possible future relationship business. The list below is a guideline to follow. If we move forward with your request, a thorough underwriting package will be required.
Existing Properties:
· Executive Summary
· Property Photos, interior and exterior for existing properties
· Current 2 years taxes on entity and or extension
· Credit report for principals with 20% or more ownership
· Current property Balance Sheet & latest interim Income Statement dated within 60 days
NOTICE: CMI is NOT a United States Securities Dealer or Broker or U.S. Investment Adviser.
CMI is a Consultant and makes no warranties or representations as to the Buyer, Seller or Transaction.
Bond Structured Financing
continued
· Current personal financial statement for any principal with 20% or more ownership
· Current two years personal tax returns for principals with 20% or more ownership
· Current Rent Roll
· Management Company info
· Title report
Construction for proposed projects:
· Pro-forma Income & Expense Statement
· Sources and Uses of all cash equity
· Hard and soft cost summary with detailed construction cost breakdown
· Construction and Draw Schedule
· Entitlement information
· Project renderings and site plan
· Developer resume’
· Contractor information with references
· Completion/Performance Bond information
· Appraisal
· Feasibility & Market Study
· Management Company info
· Copy of title report for acquired site
· Timing for municipality approval of plans and issuance of building permit
NOTICE: CMI is NOT a United States Securities Dealer or Broker or U.S. Investment Adviser.
CMI is a Consultant and makes no warranties or representations as to the Buyer, Seller or Transaction.
Hedge Fund Program
Bridge, Turn-Around, Stabilization
Loan Amounts: $15 million - $550 million
Loan Term: 2 – 6 years
Recourse: Typically, most deals are recourse deals.
Prepayment: Loans generally may be prepaid at any time after 2 years without penalty. Prepayment penalties may be required for shorter terms.
Loan to Value: Loan amounts can be up to 75% of the Bank’s approved appraised value.
Loan Rates: Rates start at Wall Street Journal Prime + 3%, 6.25% depending on the collateral type and risk. Loans are generally interest only and highly leveraged loans may contain an equity kicker or additional fees.
Origination Fee: 2%
Loan Collateral: Land, land development loans and other property types (e.g., hotels and special purpose properties) whose special circumstances disqualify them from lowest-rate financing. Can be used as a “bridge loan” on traditional multi-family, retail and office properties that need to be “turned-around” before they can qualify for conventional loan underwriting.
Construction: Considered in Texas.
Loan Flexibility: We strive to tailor a loan structure to fit your deal, unlike so many other institutions that require your deal to fit their structure.
Hard Money Loan Parameters
Finish Construction, Bridge and Rehabilitation
Lending Parameters Overview:
•
Interest Rates:
10% - 14%
•
Amortization:
Interest only
•
LTV:
Up to 65% on income producing properties
•
CLTV:
Up to 85% on income producing properties•
Origination Fee:
3% - 5% taken at closing from the loan proceeds•
Loan Terms:
1 - 3 years (Exit Strategy Required)
•
Closing times:
3 to 4 weeks
•
Loan Size:
$500K to $100 million
•
Credit:
Greater than 600 mid score on case by case basis
•
Allow Subordinate Financing:
Mezzanine, Cross Collateral, Seller held Seconds, etc.•
Cash Down:
Borrower needs at least 30% plus cash into project
•
Bridge and Rehabilitation
Max LTV to 70%
Flagged Hotel:
•
Bridge:
Flagged Hotels (up to 50% – 55% Bridge or Rehab)
•
Apartment Buildings
(up to 65% LTV Bridge)
•
Mixed-use
(up to 65% LTV Bridge)
•
Light Industrial
(up to 65% LTV Bridge)
•
Warehouses
(up to 65% LTV Bridge)
•
Office Buildings
(up to 65% LTV Bridge)
•
Grocery Anchored Retail
(up to 65% LTV Bridge)
•
Student Housing
(up to 65% LTV Bridge)
•
Non-Flagged Hotels and Motels
(up to 55% LTV Bridge)
•
Fractured Condos (limited funds)
(up to 50% LTV Bridge)
Finish Construction or Rehabilitation:
· Finish Construction or Rehabilitation of above properties (up to 65% LTC)
