Bay Area Capital Commercial -
Commercial Loan Program for all CRE types
In our current market, the banks want everything perfect.....everything. This works for maybe 10% of the US market who have perfect buildings, tenants, financials, and equity. Basically, to get a bank loan with the bigger banks these days, you have to prove that the loan represents zero risk; otherwise they will show you the door.
So for the rest of us, what options do we have?
Hard money is always there, ready and willing to fund your loan - at a steep cost however. Usually Hard money is over 9% in rate, with 4-5 points not uncommon.
Isn't there something in-between? For several years there was not, but gradually some companies are moving into this middle ground, and these programs offer a more affordable alternative to hard money.
Here is one of our favorite programs, available for all types of commercial properties:
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LTV up to 85% of value
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needs 700 credit score
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property condition should be good to excellent
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cash out possible but only for capital improvements (fund control)
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Pricing approximately 4.875% - 5.75%
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Usually 2.0 points total
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24 month prepay
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25 year amortization
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Construction and rehab considered
Program is approved for industrial, retail, multi-family and apartment, mixed use, office buildings and parks, parking facilities, storage facilities, trailer parks and mobile home parks