Types of Loans and Transaction Experience

The CMBS loans are provided through our Correspondent lender, Insurance company lenders, and our national non-bank lenders. These loans do not require any personal recourse from the sponsor or owners of the project. They are typically between 65% and 75% LTV on stabilized projects.

Freddie Mac, Fannie Mae, and FHA provide non-recourse loans for multi-family projects on a long-term fixed rate basis up to a max of 75% of the AV of the property. We also have loans for the construction and or purchase and rehab of multi-family properties.

Bridge loans are loans that are typically used to obtain a quick closing on a project or are for projects that are in transition where conventional financing is unavailable. They are short term in duration, typically one year, although we can extend them to three years in some cases. They are typically interest only and the interest rates are from 8% to 14%.

Government guaranteed loans are SBA or USDA loans where a governmental agency provides the lender with a guaranty of repayment of a certain percentage of the loan. The loans are fully amortizing loans with terms up to 25 years. They can be used for many purposes for owner occupied properties (the owner must have at least 51% of the total project in their or a related entity name).

We have a stable of local and national bank and credit union lenders for projects that can meet the requirements. These are all recourse to the owner of the borrower.

SFR Portfolio loans are provided at up to 75% of the AV on a portfolio of SFR properties. These loans are at a fixed rate and can be recourse or non-recourse. We also provide financing for the acquisition and rehab of SFR properties.

Alternative financing comprises a wide range of lenders and is typically recourse to the borrower and can be both secured by commercial real estate or can be unsecured to the business entity. It can be unsecured as well as secured. These lenders charge more than a conventional bank or credit union lender but can structure a deal to meet the requirements and provide the financing to move a project forward.