Lenders on small to large Commercial Real Estate
Loans are available for financing most enterprises imaginable. We offer easy and
fast qualifying programs available on most types of property. Commercial
lenders for real estate financing loans make it easy.
Types of Commercial Real Estate Financing Loans and Lenders
- Apartments / Multi-family
- Auto Repair Garages
- Auto Body Shop
- Car Lot and Auto Sales
- Bar / Lounges
- Bed and Breakfast
- Campgrounds - RV Parks
- Car Wash
- Condos - Office / Warehouse
- Day Care Facilities
- Funeral Homes
- Gas Stations
- Golf Courses
- Hotels
- Laundromat
- Light Industrial
- Marinas
- Mixed Use
- Mobile Home Parks
- Motels
- Multi Family - 5+ units
- Office Buildings
- Restaurants
- Retail Sites
- Self / Mini Storage Units
- Warehouses
The following list will help you identify the types of
information a banker will need to make an informed decision about your business:
- Three years income tax and financial statements
- Year-to-date profit & loss and balance statement
- Personal finance statements
- Projected cash flow statements for next 12 months
- Pro forma for next 12 months / length of loan
- Federal and state tax information
- Collateral sheet
- Well written business plan
Limited Verification and Business Income Programs available
in some cases!!
Underwriting Guidelines
Commercial real estate financing loans are underwritten
by lenders on a case by case
basis. Every loan application is unique and evaluated on its own merits, but
there are a few common criteria lenders look for in commercial real estate loans
and financing packages.
Financial Analysis:
A key component in making an underwriting evaluation is the debt coverage ratio
(DCR). The DCR is defined as the monthly debt compared to the net monthly income
of the investment property in question. Using a DCR of 1:1.10 investors say
that they are looking for a $1.10 in net income for each $1.00 mortgage payment.
Typically they will determine the DCR ratio based on monthly figures, the
monthly mortgage payment compared to the monthly net income. The higher the DCR
ratio is the more conservative the lender. Most of them will not go below a
1:1 ratio (a dollar of debt payment per dollar of income generated). Anything
less then a 1:1 ratio will result in a negative cash flow situation raising the
risk of the loan. DCR's are set by property type and what an investor perceives the risk to be. Today, apartment properties are considered to
be the least risky category of investment lending. As such, they are more
inclined to use smaller DCR's when evaluating a loan request. Make sure that you
are familiar with a lender's DCR policy prior to spending money on an
application. Ask them to give you a preliminary review of the investment
property that you want to purchase. Information is free, mistakes are not.
Loan to Value:
Unlike residential lending, investment properties are viewed more
conservatively. Many lenders will require a minimum of 20% of the purchase price
to be paid by the buyer (or 10% down with seller financing 10%). The remaining 80% can be in the form of a mortgage
provided by either a bank or mortgage company.
Credit Worthiness:
Decent credit is usually required, however some investors offer credit challenged
borrowers programs at higher rates.
Apartments Multi Family
Auto Shops Gas Convenience
Bed
Breakfast B&B
SBA
RV Parks - Campgrounds
Carwash - Car Wash
Day Child Care
Churches
Land -
Construction
Mini - Self Storage
Units
Mixed Use
Mobile Home Trailer Parks
Office / Warehouse
Restaurant - Lounge - Bar
Shopping / Strip
Mall Centers
Links
Maximum Financial Inc.
36 Cartier Ct
Dillon, CO 80435
