Commercial Loan Programs
Note: Because we work with numerous funding sources and have the ability to structure custom financing options, we don’t list canned programs. We use our smart application to determine the best options based on your needs. We don’t have structured canned programs. Below are some general terms and ranges.
Tell us what you are looking for and we will see if we can create a custom program based on your needs.
New Construction Financing
Note: Because we work with numerous funding sources and have the ability to structure custom financing options, we don’t list canned programs. We use our smart application to determine the best options based on your needs. We don’t have structured canned programs. Below are some general terms and ranges. We get the essential data needed for structuring a loan program that meets your needs!
There are several types of commercial property acquisition financing options available to individuals or businesses looking to purchase commercial real estate. The choice of financing depends on factors such as the borrower’s financial situation, the type and size of the property, and the specific requirements of the lender. Here are some common types of commercial property acquisition financing:
- Commercial Mortgage Loans: These are traditional loans provided by banks or financial institutions specifically for commercial real estate purchases. The loan is secured by the property being acquired, and typically requires a down payment and regular loan repayments over a fixed term.
- SBA 7(a) Loans: Small Business Administration (SBA) offers government-backed loans for small businesses to acquire commercial real estate. SBA 7(a) loans often require lower down payments and offer longer repayment terms compared to conventional mortgages.
- Portfolio Loans: These are loans provided by lenders who keep them in their own portfolio rather than selling them on the secondary market. Portfolio loans may offer more flexibility in terms of credit requirements, property types, and borrower qualifications.
- Bridge Loans: Bridge loans are short-term loans often used to acquire commercial properties quickly.
They provide temporary financing until a more permanent financing option can be obtained, such as refinancing or selling another property. - Hard Money Loans: Hard money loans are asset-based loans provided by private lenders or investors. They are typically short-term and designed for borrowers who may have difficulty qualifying for traditional financing due to credit issues or unique property circumstances.
- Seller Financing: In some cases, the property seller may be willing to provide financing to the buyer. This can involve the seller acting as the lender and accepting regular payments from the buyer over time.
- Real Estate Investment Trusts (REITs): REITs are investment vehicles that pool investors’ money to purchase and manage commercial properties. Investors can buy shares in the REIT, and the trust uses this capital to acquire and operate properties.
Each type of financing option has its own advantages, eligibility criteria, and terms. Let us locate the best program for you based on you situation,
G E N E R A L N E W C O N S T R U C T I O N F I N A N C I N G F R A M E W O R K
| LOAN AMOUNT LIMITATIONS | $500K To $30M |
| PROPERTY TYPES | Office buildings, Retail spaces, Industrial properties, and Multi-unit residential buildings, Storage Facilities, Student Housing, Senior Housing, Mobile Home Parks, Net Lease Properties and Special Use Properties. |
| RATE RANGES | rates can range from 5% to 12% |
| ASSUMBABLE | Yes with 1% Assumption Fee |
| LOAN TERM | up to 40 years |
| RECOURSE OR NON RECOURSE FINANCING | Both options are available |
| Apply For A New Construction Loan | New Construction Application Here |
Private Equity Financing –Asset Based Lending
ASSET BASED PRIVATE MONEY
Unlike traditional lenders who primarily assess a borrower’s creditworthiness and income, asset-based lenders focus on the collateral or assets that can be used as security for the loan.
Key characteristics of asset-based lending include:
- Collateral-based lending: Asset-based lenders primarily evaluate the quality and value of the borrower’s assets, which serve as collateral for the loan. These assets provide a form of protection or security for the lender in case of default.
- Working capital financing: Asset-based lending is commonly used for short-term working capital needs, where borrowers can utilize their assets to improve cash flow, fund day-to-day operations, or seize growth opportunities.
- Borrower’s creditworthiness: While the borrower’s creditworthiness is still considered, asset-based lenders are typically more focused on the quality and value of the assets being offered as collateral.
- Credit facility based on asset valuation: The amount of financing or credit facility provided by an asset-based lender is generally determined by the value of the assets being used as collateral. The lender may lend a certain percentage of the appraised value of the assets.
- Monitoring and control: Asset-based lenders may require periodic reporting and monitoring of the borrower’s financial performance, inventory levels, accounts receivable collections, or other factors to manage risk and ensure the value of the collateral remains sufficient.
- Higher interest rates and fees: Asset-based lending often involves higher interest rates and fees compared to traditional loans, reflecting the increased risk associated with relying on collateral rather than solely on the borrower’s creditworthiness.
- Fast Closing: The loans can be closed in 3- 10 days
Asset-based lending is commonly used in industries such as manufacturing, distribution, retail, or construction, where companies have tangible assets that can be leveraged to access financing. It can be an attractive financing option for businesses with valuable collateral but limited access to traditional forms of credit or for those in need of short-term liquidity.
Borrowers considering asset-based lending should carefully evaluate the terms, costs, and requirements of the loan, as well as understand the impact of potential defaults on their assets. Consulting with financial advisors or lenders experienced in asset-based lending can provide valuable insights and guidance throughout the process.
G E N E R A L N E W C O N S T R U C T I O N F I N A N C I N G F R A M E W O R K
| LOAN AMOUNT LIMITATIONS | $500K To $20M |
| PROPERTY TYPES | Office buildings, Retail spaces, Industrial properties, and Multi-unit residential buildings, Storage Facilities, Student Housing, Senior Housing, Mobile Home Parks, Net Lease Properties and Special Use Properties. |
| RATE RANGES | rates can range from 5% to 12% |
| PORTFOLIO FINANCING | Yes |
| NON CASH OUT | Based On The Property |
| CASH OUT LTV | Based On The Property |
| LOAN TERM | 6 Months to 20 Years- Interest Only, partially amortized and fully amortized loans available. |
| ASSUMABLE | No |
| RECOURSE OR NON RECOURSE FINANCING | Both options are available |