Bay Area Capital Commercial Mortgage
“Commercial Flagship Program”
This is one of the industry’s best commercial loans based upon rate, and is a product designed for most types of commercial properties. This lender is not a bank, so their loan process is much more reasonable than similar bank loans.
This product allows for vacancy in excess of industry standards – down to 40% vacancy in some cases. In addition, this product allows a DSCR down to 1.10 which is well below bank standards of 1.25 or higher. This is perfect for a property coming out of rehab, or in lease up, or even for a purchase out of foreclosure or bankruptcy – as long as a three year financial history can be documented.
Loan Amount: $500,000.00 and up – no limit
Eligible Property type: Industrial, Office centers and buildings, retail centers and shopping centers, apartment buildings, moderate metropolitan areas, others possible. All US states.
Loan terms: 15 – 20 – 25 year amortization; typically non-recourse loans; terms are fixed for 5, 7, and 10 years. 20 year fixed term / 20 year amortization is running 4.85% for example (subject to market).
LTV: 65% loan to value
Rate: 4.50% - 5.25% depending upon strength of package, property and sponsorship, term of loan, loan amortization, market conditions etc.
Requires: Eligible properties must demonstrate a three year pattern of financial stability. DSCR of 1.10 or better is accepted. No reserve requirements, however strong to moderate sponsorship (net worth of sponsor should be 2-3X greater than loan amount), strong resume, foreign nationals are OK with US property manager.
Notes: This is usually a non recourse loan. There is usually a prepayment penalty related to yield maintenance. There is a 1 point deposit due at acceptance, which can be credited towards lender origination fee (1 point) or towards third party expenses. Broker fee is flat fee of $5000.00 - $7500.00. Note the origination and deposit requirement. This loan is for sophisticated and experienced investors only; if you are not experienced with this type of loan you will not be comfortable with the deposit or appraisal fees needed in advance.