Bay Area Capital Commercial Loans
We have many great programs, but this is one of my favorites.
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.