Summary:

Fast, private money loans on "scratch and dent" properties and "out of favor" properties (first mortgage position only).

Property Types:

Almost every type of rental property. Therefore we will lend on multi-family properties, office, retail, industrial, warehouse, mixed use, single family homes converted to commercial, self-storage, mobile home parks, trailer parks, motels, hotels, single room occupancy (SRO) properties, residential care homes, congregate care, skilled nursing facilities, convascent hospitals, restaurants, bars, nudie bars, auto repair, gas stations (only if new double-walled tanks and the required monitoring equipment has already been installed - we will not finance their installation), churches and even land.

Our most preferred properties are residential care homes (old folks homes) and nudie bars.

Will NOT Consider:

Development and construction loans, one-to-four family dwellings. Sorry, no second mortgages.

Target Area:

Nationwide

Location Class:

C or better. No gang, drug or high crime areas.

Loan to Value:

65% maximum LTV on rental-type commercial properties (maybe 70% if less than 10 years old). Will allow seller held second and cash-out refinances.

Land Loans:

We lend on the value of the land right now in its raw, undeveloped state with 40% maximum LTV.

Interest Rate:

Risk based pricing starting at 8.9%

Terms:

Up to 15 year term with either 15 or 30 year amortization possible depending on risk.

Prepayment::

No prepayment penalty or lockout. Loan is assumable.

Debt Service Coverage:

Who Cares? We're Mainly an Equity Lender! Debt service coverage ratios of less than 1.0 are regularly permitted if the borrower can clearly handle the negative cash flow.

Preferred Deal Size:

$150,000 to $2.5mm

Points:

2 to 4 points

Recourse:

Yes with personal recourse to the principals. Property underwriting is more important than credit score.

Third Party Reports:

Limited scope appraisal (MAI not required) and Phase I environmental.

Typical Due Diligence & Closing:

Initial quote within 48 hours and closing in 2-3 weeks.