Frequently Asked Questions

Financing a property is the standard method by which individuals and businesses can purchase residential and commercial real estate without the need to pay the full price in cash up front from their own accounts at the time of the purchase. Financing for non-residential real estate is generally obtained from a bank, insurance company or other institutional lender to provide funds for the acquisition, development, and operation of a commercial real estate venture.

Financing a property is the standard method by which individuals and businesses can purchase residential and commercial real estate without the need to pay the full price in cash up front from their own accounts at the time of the purchase. Financing for non-residential real estate is generally obtained from a bank, insurance company or other institutional lender to provide funds for the acquisition, development, and operation of a commercial real estate venture.

Commercial financing loans are secured primarily by real estate and related assets owned by the debtor. Assets used to collateralize commercial finance loans, aside from the real estate, may include fixtures, equipment, bank and/or trade accounts, receivables, inventory, general intangibles, and supplies. Documents evidencing and securing the loan typically include: loan agreements, promissory notes, mortgages or deeds of trust, assignments of rents and leases, financing statements, environmental indemnity agreements, guaranties, subordination, non-disturbance and attornment agreements, estoppel certificates, and other ancillary documents.

Commercial financing loans are secured primarily by real estate and related assets owned by the debtor. Assets used to collateralize commercial finance loans, aside from the real estate, may include fixtures, equipment, bank and/or trade accounts, receivables, inventory, general intangibles, and supplies. Documents evidencing and securing the loan typically include: loan agreements, promissory notes, mortgages or deeds of trust, assignments of rents and leases, financing statements, environmental indemnity agreements, guaranties, subordination, non-disturbance and attornment agreements, estoppel certificates, and other ancillary documents.

An exchange is a real estate transaction in which a taxpayer sells real estate held for investment or for use in a trade or business and uses the funds to acquire replacement property. A 1031 exchange is governed by Code Section 1031 as well as various IRS Regulations and Rulings.

An exchange is a real estate transaction in which a taxpayer sells real estate held for investment or for use in a trade or business and uses the funds to acquire replacement property. A 1031 exchange is governed by Code Section 1031 as well as various IRS Regulations and Rulings.

For commercial lending purposes, an assignment of leases assigns the debtor’s rights, as landlord under a lease or leases, to the creditor for the collection of rent as additional security for a debt or other obligation. The assignment grants to the creditor a security interest in the rent stream from any leases affecting a property, an important source of cash to pay the note in case of the borrower’s default.

For commercial lending purposes, an assignment of leases assigns the debtor’s rights, as landlord under a lease or leases, to the creditor for the collection of rent as additional security for a debt or other obligation. The assignment grants to the creditor a security interest in the rent stream from any leases affecting a property, an important source of cash to pay the note in case of the borrower’s default.

An estoppel certificate is a signed statement by a party certifying certain statements of fact as correct as of the date of its execution. In a commercial financing context, the creditor often seeks estoppel certificates from existing tenants in a property to be mortgaged in order to confirm the major terms of a lease, and whether the tenant claims any defaults by its landlord. An estoppel certificate precludes a tenant from later claiming that a default or other condition of the lease exists which was not disclosed in the estoppel certificate.

An estoppel certificate is a signed statement by a party certifying certain statements of fact as correct as of the date of its execution. In a commercial financing context, the creditor often seeks estoppel certificates from existing tenants in a property to be mortgaged in order to confirm the major terms of a lease, and whether the tenant claims any defaults by its landlord. An estoppel certificate precludes a tenant from later claiming that a default or other condition of the lease exists which was not disclosed in the estoppel certificate.

A non-recourse loan is a secured loan that limits the creditor, in the event of default by the debtor, to proceed only against the collateral securing the loan to satisfy the debt and not the debtor’s other assets which are not specifically pledged as collateral.

A non-recourse loan is a secured loan that limits the creditor, in the event of default by the debtor, to proceed only against the collateral securing the loan to satisfy the debt and not the debtor’s other assets which are not specifically pledged as collateral.

Just as in the context of residential real estate, title insurance protects the insured, who can be the property owner and/or the mortgage lender, from loss due to undisclosed defects in title to real property and, for creditors, from loss due to the invalidity or unenforceability of its mortgage lien.

Just as in the context of residential real estate, title insurance protects the insured, who can be the property owner and/or the mortgage lender, from loss due to undisclosed defects in title to real property and, for creditors, from loss due to the invalidity or unenforceability of its mortgage lien.

The choice of entity for purposes of commercial financing is one that will be dependent on many factors, including tax considerations, identities of the owners, whether there will be preferred returns, who will operate the project, state law, and the like. The decision as to whether to use an entity and, if so, which entity to use can be complicated and should be made with the assistance of competent tax, accounting and legal advisors.

The choice of entity for purposes of commercial financing is one that will be dependent on many factors, including tax considerations, identities of the owners, whether there will be preferred returns, who will operate the project, state law, and the like. The decision as to whether to use an entity and, if so, which entity to use can be complicated and should be made with the assistance of competent tax, accounting and legal advisors.

If the owner’s equity and lender’s loan together are insufficient for the financial needs of a property, a borrower may sometimes also seek out one or more additional lenders to finance the project. Many creditors have become increasingly hostile to secondary financing involving a junior mortgage lien on property on which they hold a mortgage.

If the owner’s equity and lender’s loan together are insufficient for the financial needs of a property, a borrower may sometimes also seek out one or more additional lenders to finance the project. Many creditors have become increasingly hostile to secondary financing involving a junior mortgage lien on property on which they hold a mortgage.

It is your debt service coverage ratio. Every lender has a minimum debt-service coverage ratio requirement for approving a business loan. In general, this needs to be 1.25 or more. Annual Net Operating Income + Depreciation & Other Non-Cash Charges Interest + Current Maturities of Long-Term Debt Or EBITDA (Earnings Before Interest, Taxes, Depreciation & Amortization) Interest + Current Maturities of Long-Term Debt

It is your debt service coverage ratio. Every lender has a minimum debt-service coverage ratio requirement for approving a business loan. In general, this needs to be 1.25 or more. Annual Net Operating Income + Depreciation & Other Non-Cash Charges Interest + Current Maturities of Long-Term Debt Or EBITDA (Earnings Before Interest, Taxes, Depreciation & Amortization) Interest + Current Maturities of Long-Term Debt

The interest you're paying can sometimes be offset against rental income and other eligible property costs. Investors who opt for interest-only repayments on a fixed rate loan may also be able to claim a tax break for up to twelve months of prepaid interest

The interest you're paying can sometimes be offset against rental income and other eligible property costs. Investors who opt for interest-only repayments on a fixed rate loan may also be able to claim a tax break for up to twelve months of prepaid interest

Stated income programs are perfect for self-employed professionals like you—whether you’re a business owner, freelancer, or contractor. If traditional income documentation isn’t your thing, this could be the solution you’ve been looking for.

Any type of self-employed professional might be eligible for a stated income loan (bank statement loan). This includes a wide range of people, including business owners, entrepreneurs, freelancers, gig workers, contractors, and many other types of self-employed professionals.

Generally, lenders consider a loan fully seasoned when you've had it for at least one year. ... Many lenders will not refinance an immature loan, and those wishing to sell a property with an unseasoned mortgage face increased scrutiny from the buyer's mortgage lender. While it depends on your lender, you should expect to have the money in your bank account for a minimum of 60 to 90 days for it to qualify as sufficient funds to put towards your mortgage loan.

Generally, lenders consider a loan fully seasoned when you've had it for at least one year. ... Many lenders will not refinance an immature loan, and those wishing to sell a property with an unseasoned mortgage face increased scrutiny from the buyer's mortgage lender. While it depends on your lender, you should expect to have the money in your bank account for a minimum of 60 to 90 days for it to qualify as sufficient funds to put towards your mortgage loan.

Yes, 5-7 properties can be combined into one loan. The benefit is instead of having to pay on properties at different times. You able to have the convenience of one payment. Also, based on the restructuring of the loans it may give you more savings in the long run. Example:

Yes, 5-7 properties can be combined into one loan. The benefit is instead of having to pay on properties at different times. You able to have the convenience of one payment. Also, based on the restructuring of the loans it may give you more savings in the long run. Example:

Min 300K.

Min 300K.

38 states for multi family and vacation properties For commerical every state except for SD, NM and NV.

38 states for multi family and vacation properties For commerical every state except for SD, NM and NV.

Typically, we can close a loan in less than 45 days. We know time is money, so we aim to make the process as quick and smooth as possible.

On an average less than 45 days.

No, Over the years, we have developed relationship with top tier lenders. This is advantage as you able to have more choices of loan types better rates and terms.

No, Over the years, we have developed relationship with top tier lenders. This is advantage as you able to have more choices of loan types better rates and terms.

Our closing costs depend on the type of loan that you need. On an average , lenders charge about 2-6% of the loan amount. Speak to one of our commercial experts.

Our closing costs depend on the type of loan that you need. On an average , lenders charge about 2-6% of the loan amount. Speak to one of our commercial experts.

Usually on average appraisers charge min 500 to 800 or more depending on the size of units.

Usually on average appraisers charge min 500 to 800 or more depending on the size of units.

You need to charge high enough rent to cover your expenses and take home a profit.

You need to charge high enough rent to cover your expenses and take home a profit.