Acquisition & Development: Raw land infrastructure development (streets, utilities, etc.). Apply

Adjustable Commercial Mortgage: Interest moves with a specific index (Prime, T-Bills, etc.). Apply

Adjustable commercial mortgage

Adjustable Commercial Mortgage is a real estate loan with an interest rate that changes periodically, according to an index that is selected when the mortgage is issued. With an ARM (Adjustable Rate Mortgage), you might qualify for a larger loan and your ARM could be less expensive than a fixed-rate over a long period.

There are a variety of programs to choose from:

• Easy in/Easy out
• Variable/Convertible Loan
• Adjustable with future option to increase loan
• Simple interest loans with or without graduated payments
• And more . . .

To compare one ARM with another or with a fixed-rate mortgage, you need to know about indexes, margins, discounts, caps, negative amortization, and convertibility. Let us guide you through the process of making a well informed decision.

Construction /Mini-Perm: Construction with 3 to 5 year loan, usually on income property. Apply

Construction mini perm loans for income producing properties

Construction mini perm loans are a financing method used primarily for income producing projects that need to establish an operating history prior to applying for long term permanent financing.

They are usually applicable to:

• Shopping centers
• Office buildings
• Industrial properties
• Large apartment complexes

Construction mini perm loans are available during the project construction phase and last through the rental stabilization period. Mini perm loans usually carry a term length of 3 to 5 years and, as a result, they are always a short term financing solution. The loan matures with a balloon payment at the end of the term.

Construction with Takeout Package: Construction with pre-arranged takeout loan in place. Apply

Construction loan with takeout

Construction loan with takeout refers to short term financing of real estate construction followed by long term financing, called a "take out" loan. This "take out" loan is issued upon completion of improvements.

Construction loans normally work together with take-out loans.

For example:

• The land developer gets a construction loan to build a cluster of homes.
  

• When all the homes are ready to sell, a buyer gets a take-out loan from a lender to purchase one of the new homes.
  

• The builder uses part or all of the money from the sale towards paying off the construction loan.

The disbursement of the take out loan is contingent upon completion of construction and, in most instances, needs to be applied toward the preceding construction loan (interim financing).

Fixed Rate Commercial Mortgage: Interest Rate remains constant throughout the term. Apply

Fixed rate commercial mortgage

Fixed rate commercial mortgage products are mortgages that have a fixed interest rate and payment for the full term of the loan. These loans make it easier to budget, especially over the long term and offer stability across an ever-fluctuating market.

Typical properties include: Multi-family, anchored, unanchored retail, full and limited service hotels, offices, light-industrial, self-storage, and senior housing.

Term: Typically 5 to 20 year maturities.

Rate: Interest rates set at spreads usually ranging from 150 to 275 basis points over corresponding Treasuries, depending on property type and underwriting criteria.

Loan to Value: Subject to underwriting criteria, up to 80% LTV.

Additional features such as: Prepayment, assumption, liability and amortization will be thoroughly explained once we've reviewed your information and match your needs with the most ideal program.

Interim Loan: A short term (2 yrs or less), bridge or project type loan. Apply

Interim loan financing - seize your opportunity

Interim loan financing is commonly utilized in real estate transactions.

Term: These loans range from 6 months to 5 years with the most typical term being 3 years.

Rate: Interest rates most often float over a defined loan index for the term of the loan and adjust or reset at maturity. In some instances the rate can be fixed.

Amortization: These loans are primarily interest only and do not amortize over
the loan term.

Prepayment Penalties: Yes, however, some programs will waive fees if converted into permanent financing (which is usually the case).

An interim loan can give you a stronger negotiating position and you can purchase a property without a contingency on the sale of your existing property.

Joint Venture: A financial partner in the development of real estate. Apply

Joint venture financing for commercial property

Joint venture financing is a means of structuring a mortgage in order to help you, the client, maximize cash flow potential. How? By "teaming" you with a lender as an investor.

Definition of a joint venture: similar to a partnership in that it must be created by agreement between the parties to share in the losses and profits of the venture. It is unlike a partnership in that the venture is for one specific project only, rather than for a continuing business relationship.

In this case, the joint venture concerns commercial real estate and the lender-borrower relationship. Borrowers do not always start out looking for partners, but sometimes recognize the value of sharing equity over "straight" debt-financing.

Structured Joint-Venture Financing can be complicated and is not appropriate for all projects. Fill out our form and we will evaluate your situation to see if joint venturing is a viable means of finance. When it makes sense, we will advise our customers appropriately, and match the right lender/partner to the project.

Participating Mortgage: Lender receives a kicker for gross income above a preset level. Apply

Participating mortgage - a creative alternative

Participating mortgage is a loan that contains clauses and conditions under which the lender participates in the revenues of the property. The level of participation may be calculated from the gross receipts, net operating income, net income or net cash flows of the property.

Also known as "kickers" these loans provide:

• The lender with an effective tool to spread, and thus reduce, risk.
• The lender with additional incentive to make your loan.
• The lender with a more flexible means of structuring your loan

Finding out which program is right for you is as easy as completing a simple form. Your request will be matched against the best programs. The goal is to make a difficult process easier.

Real Estate Sale and Leaseback: Lender purchases land and leases back to borrower (generally developer) for a fixed rent plus other considerations. Mortgages are issued on leasehold at market rates. Usually, produces more dollars than a mortgage. Apply

Real estate sale and leaseback program

Real estate sale and leaseback financing is when a business sells its commercial property for its fair market value and then immediately leases it back. Most importantly, you retain control of the property.

Here are some of the resulting benefits:

• Free-up capital for re-investment.
• Improve the balance sheet.
• Defer a substantial portion of the tax liability.
• Receive 100% of fair market value.
• Low payments with long terms (up to 25 yrs.).

This has become an increasingly popular means of generating capital for immediate use. A sale-leaseback vehicle unlocks the value in your real estate assets and provides you with immediate working capital.

Real Estate Purchase: Lending for the purchase of commercial real estate. Apply

Second Mortgage (Commercial): Loan secured by equity behind that of the first lien. Apply

Wraparound: Lender makes a second mortgage and assumes the first mortgage. Apply

Wraparound mortgage - a creative financial tool

Wraparound mortgage, also called an all inclusive trust deed, is a creative financing tool where a new mortgage is placed in a secondary position to the original mortgage and the new mortgage includes the unpaid balance of the first.

It is a mortgage in which another lender refinances a borrower by lending an amount over the existing first without paying off the balance of the existing first.

Here's how it works:

• Seller holds onto the existing mortgage.
• Seller names the property's selling price.
• Lender offers buyer a loan at a higher interest rate than the existing.
• Buyer pays the lender a fixed monthly amount
• Lender uses part of this money towards the existing loan.
• Lender's incentives are profit from the difference in interest and less exposure.

Unlike an installment sales contract where the buyer gets title (ownership) of the property at closing and the original mortgage stays in place (not common since most mortgages have a due-on-sale clause), the wraparound mortgage is a creative way to allow a buyer to purchase property without having to qualify for a much smaller loan.