Bay Area Capital Commercial

Transitional / Rehab / Soft Money

This is not a bank product ? this is a program from a private commercial lender. The loan is far less expensive than private or hard money, and it is perfect for investors who desire a more reasonable rate and cost structure during a purchase or refinance, or during a period of transition, prior to rehab, or for construction completion, or for a property being reconfigured or re-positioned. This is not a loan for ground up construction, but it will allow some rehab component, and it will consider an ?after-completion? value. This product is available nationally in the USA. Eligible asset classes include multifamily, apartments, trailer and RV Parks, office, retail, hotel and hospitality, some industrial, storage and parking structures, and many others.

This is a very powerful product for investors with property that does not meet the strict guidelines of the banks and Fannie Mae for issues that include:

  • Construction completion and Rehab OK
  • Debt coverage can be as low as 0.50
  • Property in transition or Re-configuration (example - old retail building being converted to apartment)

Rates and cost can vary, depending upon class of property, strength of property performance, and strength of sponsor; however rates can be as low as 4.875% and generally are not higher than 6%. The fee structure is usually 2 points total, with a reasonable 24 month prepayment penalty, and a 25 year amortization.


  • Purchase or refinance (purchase out of foreclosure OK)
  • 2-3 year term 25 year amortization term
  • Up to 85% loan to current value (property condition should be good or better)
  • Property should demonstrate a good exit, but does not need to be fully income producing now, as with a partial rehab.
  • Two year prepayment penalty
  • Cash out OK but will need 12 month seasoning, fund control for property improvements


  • $700,000 minimum loan size
  • Appraisal to support future value, future income, future exit strategy
  • Good sponsorship including strong resume and decent liquidity
  • Full financials and documentation (not stated income); 700 credit or better
  • First liens only
  • No land, No owner occupied residential property, no environmental issues, no zoning issues tolerated.


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