Frequently Asked Questions
Q: What’s the typical turnaround time once all needed information is submitted?
A: Typically, once we have a complete package the turnaround time for funding is between 45-60 days.
Q: In addition to debt, do you also look at projects where an equity investment or Joint Venture is needed?
Q: We are always looking for properties to buy, do you also help with networking between potential buyers and sellers?
Q: What’s the best way to get my loan processed as quickly as possible?
A: More times than not, the most common reason for delays is that the borrower has not submitted a complete package; the quoted timeframe estimate of 45 to 60 days is based from the point a complete package is submitted.
Q: Do you do new construction loans for Commercial Real Estate (CRE)?
Q: Do you do No Doc (No Documentation) loans for Commercial Real Estate?
A: In general yes, however the decision is made on a case by case basis.
Here’s more insight into the (No Doc) No Documentation Loan process:
- Loan Criteria & Term
The loan is based on the cash flow of the subject property only.
The loan is a 30 year term, with an adjustment after 5 years. It’s a regular loan, not a bridge loan.
- P&L and Rent Roll
The P&L and Rent Roll info are needed to make sure that that the income and expense info shows that the property can service the loan debt. Some lenders will also calculate that the property meets a specific ratio called the Debt Service Coverage Ratio (DSCR).
- Credit Score
Most lenders will sale their loans in the secondary market and therefore the requirement for a minimum credit score. The credit score helps potential buyers of the loan in the secondary market to have some assurance that the borrower has met some sort of credit worthiness requirement. In this case, the minimum credit score is 630.
- Bank Statements
Bank statements are needed to make sure that the borrower is not in a financial situation where they do not have cash reserves in the event that unexpected expenses arise with the property. The lender wants to see that the borrower will not be living off of the income of the property, i.e. income from the property would not be there to meet unexpected expenses generated by the property if the owner is siphoning too much from the property’s income.
Unlike with an, owner occupied, residential loan, the commercial loan does not have to be seasoned. The loan process is viewed like a business, so that if you had a short falling in your business and/or needed a gap filled you would go out and get the resources you need; for example, a borrower may need a partner to help with the equity (down payment) needed for the loan or to help show cash reserves.