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General Commercial loans are loans on all commercial properties, except multifamily properties. For multifamily and apartment loans see the Multifamily/apartment loan guidelines.
General Commercial properties include the following:
- Office Buildings and Office Condominiums
- Retail properties, strip malls, shopping centers, stand alone retail franchises, etc.
- Industrial buildings and Warehouses
- Hotels and hospitality establishments
- Mixed Use - a combination of any two or more property types, like retail storefront on the ground floor with offices above.
General commercial loans are available through a multitude of national commercial lenders, local banks and savings and loans, and insurance companies.
Loan Guidelines
Generally, commercial loans will have the following terms and conditions:
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Loan to Value (LTV)
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75% Max
90% Max for owner occupied SBA loans
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Amortization
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25 years (300 months)
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Interest Rate
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6.75% - 7.75%
(+500-600 bp over Treasury)
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Point and Fees
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1% Origination Fee to lender
2-4% Total fees for owner occupied SBA loans
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Third Party Reports
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Appraisal
Environmental questionnaire or Environmental Report (if required)
Title Commitment and Insurance
Business and marketing plan for owner occupied SBA loans
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Documentation
The following is a list of items required to process your multifamily/apartment loan. The more of the following information you can provide, the faster we can respond to your loan request:
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Executive Summary
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Brief description of the loan request, including:
- Desired loan amount
- Estimated current as-is value of property
- If Construction:
- Estimated as-completed value
- Sources and uses of funds
- Construction Budget
- Exit strategy
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Rent Roll and Income Statement
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Current Rent Roll required. YTD and Historical rent rolls are also helpful.
Things to include in rent roll:
- Unit #s with square footage of unit
- Tenant / Company names
- Base rent
- NNN payments (if any with description of any pass-through expenses absorbed by tenant)
- Schedule of rent increases
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Expense Statement
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Current monthly expense statement required. YTD and historical expense statements are helpful. If available supply property operating statements for the past two (2) years.
Things to include in expense statement:
- Annual property taxes
- Insurance
- Water/sewer taxes
- Fuel and electricity
- Maintenance/repairs
- Management Costs
- Advertising/Marketing
- Salaries
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Property Description
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Description of the subject property, including:
- Color photos of subject property
- Details on Location and nearby amenities
- Floor plans (if applicable)
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Borrower Information
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The following personal documents will be required by most lenders:
- Personal Financial Statement for each Borrower/Principal.
- Resume / Background of the Borrower(s) including
- Current properties owned
- Past projects completed.
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