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Commercial Real Estate

Commercial Loan News, Commercial Real Estate, What's Closing Now

$575,000 – ComCap Private Fund – New Construction Rural AirBnB

Rural West Texas

 

This deal needed to close quickly. They were scheduled close on the property on Tuesday, the 5th of July, but had only submitted their loan request to us on July 1st (that’s right, the Friday before the 4th of July!)
Note: A 10-day extension on the closing was possible IF they could get a commitment by the 5th… otherwise, he would lose the property. But thanks to our private fund, we were able to issue the commitment on the 5th and closed their loan the following week.
In addition to the tight schedule, this particular property was a new-construction house and barn on 36 acres in the middle of Nowheresville, West Texas. The city wasn’t even a true city – it was a “community” with no official resident count (by the satellite photos, maybe 50 people in the town?) However, the property was gorgeous and his goal was to use it as a retreat for people through AirBnB. The borrower had experience in this business and the cash to put down — but had no cash flow in his business and of course, no history of cash flow in the property.
With our private fund, we were able to issue the loan at 50% LTV and escrowed six months of payments.
When we have a special-use vacant property located in a rural area or with no cash flow, we send the deal to our private $20 million fund for consideration. To accommodate for the risk, we simply adjust the LTV. We have gone as high as 90% for strong borrowers with SBA takeouts, and as low as 25% for rural vacant land. If you have a deal that has good collateral but needs to close quickly, send us an inquiry through Loan Finder or give us a call at (888) 959-1648.
Commercial Real Estate, Refinance, What's Closing Now

$1,300,000 – Cash-out Refi – SFR Portfolio

Brevard County, FL

This client had a very conservative relationship with debt. His whole life, he was taught that debt was “bad” – so when he purchased the 14 properties in his portfolio, he made sure that they were all paid off and cash-flow positive. However, this kept him paper rich and cash poor — which was making it difficult for him to compete when putting in offers for new properties.

Our challenge, first and foremost, was to change his understanding of what a mortgage can be. When treated properly, a mortgage is leverage – not purely debt. With the right guidance, a smart investor utilizes his leverage to consistently enhance his portfolio.

To keep it conservative, we advised him to do a 60% LTV loan — which is reasonably low leverage — to keep his payments low and manageable in case the market took a turn.

If you’re looking to expand your portfolio and need cash, contact our experts to see which options are available to meet your needs and future goals. Not all loans are created equal – and that’s why it’s essential that you partner with a lender who has your best interests at heart. There’s no risk or obligation to simply explore your options — so try our Loan Finder today to see your results in minutes, or give us a call at (888) 959-1648.

Commercial Loan News, Commercial Real Estate, What's Closing Now

$1,495,000 – Acquisition and Rehab for Medical Office

Orlando, FL

This was a purchase and renovation by a husband-and-wife doctor duo. Both the husband and the wife had multiple entities, making this a rather large loan file to process (which is no problem for our ComCap Team!) The purchase price of the office building was $1 million, while the necessary rehab and renovations totaled an additional $495,000. Rolling in final closing costs, working capital and cost overruns, the final loan amount was $1,443,200 — which we closed in 45 days!

We love working with doctors and dentists. If you’re looking to grow, buy, or sell your practice, call us today at (888) 959-1648 or email us at info@comcapfl.com to get your next loan closed! There’s no risk or obligation to explore your options today.

 

Commercial Real Estate, What's Closing Now

$7,100,000 Cash-out Refi for Complete Renovation

Atlanta, GA

The iconic “Peach” building in Atlanta, Georgia has long been an unfinished eyesore in the Peachtree/Buckhead neighborhood. What started off as an office building in the 1960s was later repurposed into unique art-deco apartments, but the funding fell through before the project could be completed. Thus, it stood there, completely abandoned for more than a decade. That was until a new development firm decided to call the team at Commercial Capital.

With zero lease contracts, we were still able to secure this building’s financing at more than $7 million and close it, in ONLY 6 DAYS!

Complicated deal? Let us take a risk-free look by calling us at (888) 959 1648 or email us at info@comcapfl.com.

Commercial Real Estate, What's Closing Now

$543,750 – CRE Purchase

Merritt Island, FL

Part of this pharmacy’s success was its prime location on the corner of a busy commerce location. When the building’s owner wanted to sell, the established pharmacy had to make a decision – purchase the location that their customers had been going to for 8 years, or risk putting their business in jeopardy. Once they put in a bid, the pharmacy needed funding FAST in order to close the deal. Even with multiple business owners, we were able to get this fixed-rate loan done quickly – in 30 days – to secure their prime location and save their business.

Bridge Loan, Commercial Real Estate, What's Closing Now

$1,950,000 – Bridge Loan – Apartment Complex

Memphis, TN

This bridge loan on the purchase of an apartment complex did not have the necessary occupancy to get a normal loan, and the client needed to close quickly. The time it took from when the client signed our term sheet to the closing was only a whopping 18 days! NOT business days, actual calendar days!  Bridge loans are a great alternative when you need speed and flexibility.  Count on us to have the best hard money and bridge loan sources in the country. 

Bridge Loan, Commercial Real Estate, What's Closing Now

$2,000,000 – Bridge Loan – Multifamily Acquisition

Germantown, TN

This was a purchase of an apartment complex with an occupancy lower than 85% – and thus could not qualify for conventional financing. However, we were able to get the deal done with a bridge loan source that closes quickly.  Once this proven operator restores the building to full occupancy, it will be easy to move this loan into a conventional loan.  These are the easiest bridge loans for us to do and we can really perform well on these anywhere in the country.  Give us a call at 888-959-1648 on your next apartment deal, we can get it done for you!

Blog, Commercial Loan News, Commercial Real Estate, SBA

5 Loan Document Tips for Commercial Borrowers During COVID-19

Due to the economic impact of COVID-19, commercial underwriting has become more conservative than ever. While the experience is unlike the financial crisis of 2007, which affected the availability of commercial loans — we are seeing a change in the amount of risk a lender is now willing to take on as a result of COVID-19’s other economic effects. This is good news: it means that there is still plenty of commercial money available! However, the parameters that must be met to get funded have dramatically changed.

As we move into 2021, it is expected that cautious underwriting to continue as an industry-wide trend. Thus, borrowers will have to provide more documentation than ever to qualify for commercial loans. Before applying for your next commercial loan, take a few minutes to review our checklist for how to best prepare or the underwriting process. Proper preparation will not only save you time down the road, but may also be a make-or-break in securing the best loan terms in the near future.

Loan Doc Tips 2021

Tip #1: Provide Extra Income Verification

The effects of COVID-19 may have had a significant impact on the income of your business or property in 2020. In order to prove that your business is has a steady track record, be prepared to provide more than the standard 2 years of income tax returns – providing 3-4 years as well as 3-4 years of personal tax returns will set you up to be a more solid candidate.

Every lender has different requirements. Make sure to confirm these requirements ahead of time, and then have the additional documentation readily available – as it will more than likely be called upon.

Tip #2: Prove Higher Debt Service Coverage Ratio

While in 2019, a DSCR of at least 1.15 showed that a business generated enough income to service its debts, such a ratio is no longer accepted as the standard when it comes to applying for commercial loans. In order to put your best foot forward, show how your business is strong enough to last the pandemic by proving a higher debt service ratio of at least 1.2-1.25 or higher.

In order to prove DSCR, banks and lenders used to require copies of bank statements. However, as a result of the pandemic, we’re seeing lenders ask for recent month-to-date bank statements to give a more accurate real-time look at how your business is keeping up with its payments. (These are truly unprecedented times!)

Tip #3: Add your PPP or EIDL to your Debt Schedule

If you received a PPP or EIDL, you’ll need to secure additional documentation for your application. Make sure to communicate with your CPA on whether or not your loans will be forgiven, and then make sure to add them to your debt schedule.

If your PPP loan is forgiven or WILL BE forgiven, make sure to have all statements, payroll, and other documents on hand to support your claim. If you received an EIDL, treat it as an SBA loan in lien position — as it is similar but not superior to a SBA 7a loan.

Tip #4: Re-Verify Your Business and Personal Credit Scores

One of the biggest mistakes we see during the underwriting process is that the borrower was unaware of changes to their credit scores. It is extremely important, more than ever, to know both your business AND personal credit scores from all of the major bureaus.

And please, we know that the deals right now can be tempting — but hold off on making any major purchases, such as a home or even luxury vehicle, until after your loan is approved!

Tip #5: Provide Statement About COVID-19 and Your Business

Treating your lender like they are your partner in your business endeavors is key. In addition to providing all proper income and credit verification as detailed above, consider also providing a personal statement that outlines the effects of the pandemic on your business. Per the SBA, this statement should include:

  1. How has your business revenue/staffing levels been impacted?
    • Do you have a plan in place to return these levels to “normal” operation?
    • What’s your contingency plan in case those levels are not met for the next 18 months?
  2. How have any restrictions such as “stay-at-home orders” and its limitations impacted your cost projections, clientele or access to supplies, inventory and/or equipment?
  3. What other COVID-19 impacts have affected operational cost of your business? (ie. sanitation supplies, protective gear, and other essential costs for protecting the business and its employees?)
  4. Is there any reliable historical financial information for your business based on the current market conditions that can predict its probable success?
  5. How concentrated or diversified is your customer base? and How dependent are you on those concentrations?
  6. How diversified are your vendors/suppliers? and How dependent is the success of your business on those particular vendors/suppliers?

Whether or not you’re applying for an SBA loan, make sure you have this comprehensive statement ready to go.

In conclusion…

Times have changes, and so must your loan application. By thinking like a pandemic-era lender, and preparing your documents like a pandemic-era invest, you’ll save yourself a lot of time from having to go back to the drawing board… and these days, timing is everything!

Speaking of timing, do yourself one better than simply implementing these tips — consider working with a Commercial Loan specialist, like those at ComCapFL. Unlike a broker who simply finds a loan that matches your requirements, a commercial loan specialist leverages their private funds and industry relationships to find the loan that works for you and your specific goals. Working with a commercial loan specialist from the beginning of your loan process won’t only assist you on elements of the loan, such as the application — but it will also keep you from having to start all over again in the case of push back or denial!

At ComCapFL, if we accept your loan request, we’ll close your loan. To learn more, email us today at info@comcapfl.com or call us at (888)959-1648 and find out what we can do to help fund your commercial real estate or business project.

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