Commercial Construction, Multifamily,

Subdivision Construction and Land Lending Programs

International Only

 

Bank Style:  Minimum $5,000,000 – no maximum

International Development / Construction if they have (1) all of the approvals and (2) are ready to pull the permits (3) 40% preleased or presold (4) creditworthy principals:

First position

    • Five year note
    • Loan amount for this fund-controlled development and construction project will not  exceed 60% LTV of the completed value and not to exceed 65% LTC, all-in, of the total project costs.
    • Borrower must have the other 35% of the project costs in cash, limited debt and/or equity in the land.
    • Points, broker commissions and interest reserve out of the gross loan proceeds on the first draw. The first draw will not exceed 70% of the As-Is-value-in-place.
    • The interest rate will be 8% to 10% per year and set after the underwriting.
    • Interest-only payments paid monthly for the first two years then 20 year amortization for remaining 3 years of this 5 year loan.
    • Origination fees are 5 points (the points will be deducted out of gross loan proceeds at the close)
    • No exit fees
    • Prepayment penalty (PPP) is the interest for half the term of the loan
    • Release clause of 85% of actual sale price of any units, if required.
    • The construction project will need to be 40% pre-leased or pre-sold for all units being built to be leased or sold.
    • Without the pre-leases or pre-sales, we require additional collateral that is cash flowing (using any type of steady cash flow stream yield a 1.0x DSC) that can help out with the debt service of this financing, and where we will file a subordinate lien.
    • We require a strong guarantor(s) with this quote – demonstrate that the required cash is available, liquid, good credit, experienced, etc.
    • There is an out of pocket fee upon acceptance of the LOI, and then a deposit when a commitment is issued, which will be applied to the 3rd party costs and legal (commitment deposit)
    • Funding date of 30 days from commitment being accepted
    • If the borrower wants or needs a proof of funds (POF), we can provide a POF of $100 million that borrower can verify for additional $15,000 fee.

Private Money:  Minimum $5,000,000 – no maximum

    1. Requires (1) all of the approvals (2) are ready to pull the permits, (3) no pre-sales/leases required – maximum 60% LTV:
    • First position.
    • One year or two year Note
    • Loan amount for this fund-controlled development and construction project will not to exceed 60% LTV of the projected completed value.
    • Points, broker fees and commissions and the interest reserve paid out of the gross loan proceeds on the first draw.
    • With this quote we will not make any lien pay downs or pay offs.
    • Liens may remain but in a subordinate position.
    • No cash out and No acquisition money – funds used for construction costs only
    • The interest rate will be 15% to 18% per year and set after the underwriting.
    • Interest only payments paid monthly.
    • Origination fee 12 points (the points will be deducted out of gross loan proceeds at the close)
    • Prepayment penalty (PPP) is six months of interest payments.
    • Release clause of 85% of sale price for units sold as needed
    • There is an out of pocket fee upon acceptance of the LOI, and then a deposit when a commitment is issued, which will be applied to the 3rd party costs and legal (commitment deposit)
    • If the borrower wants or needs a proof of funds (POF) we can provide a POF of $100 million that borrower can verify for additional $15,000.
    1. Requires (1) all of the approvals (2) are ready to pull the permits; (3) no presales/preleasing required – maximum 60% LTC. First position …
    • One year to two year note,
    • Loan amount for this fund controlled development and construction project will not to exceed 60% LTV of the completed value and not to exceed 60% LTC all-in.
    • Borrower must have the other 40% of the total project costs
    • Points and the interest reserve paid out of the gross loan proceeds on the first draw
    • The first draw will not exceed 60% LTV of the As-Is value
    • The interest rate will be 15% to 18% per year and set after the underwriting.
    • Interest only payments paid monthly …
    • The costs is 12 points gross (the points will be deducted out of gross loan proceeds at the close)
    • Prepayment penalty (PPP) is six months  of interest payments for six months …
    • Release clause of 85% of sale price if needed …
    • Out of Pocket fee upon the LOI a funding date of 30 days from the LOI being accepted .
    • If the borrower wants or needs a proof of funds (POF) we can provide a POF of $100 million that borrower can verify for additional $15,000.
    1. Requires (1) do or do not have all of the approvals (2) if they are ready or not ready to pull the permits – 60% LTC/LTV
    • First position
    • Two year note
    • Not to exceed 60% LTV As-Is market value, or not to exceed 60% LTC of the total project costs (with this quote the “As-Is” market value is what the collateral can sell for after marketing the collateral for up to six months)
    • The interest rate will be 15% to 18% per year and set after the underwriting  …
    • Interest only payments paid monthly
    • Any needed interest reserve will be deducted out of the gross loan proceeds at the close
    • The origination fee is 12 points  (the points will be deducted out of gross loan proceeds at closing)
    • Prepayment penalty (PPP) is six months of interest payments.
    • Out of pocket fees due upon acceptance of the LOI, and then when a commitment is issued, a commitment fee will be due and applied to the 3rd party and legal costs (commitment fee)
    • Funding date of 30 days from commitment being accepted
    • If the borrower wants or needs a proof of funds ( POF ) we can provide a POF of $100 million that borrower can verify for additional $15,000.00 …

Private Money and Great Credit   $1 million to $3 million maximum loan  – 80%-100%  LTC

    • Three ( 3 ) to five (5) strong U.S. Guarantors required with 700 or better FICO scores
    • First position or 2nd position
    • $1,000,000 minimum loan and $3,000,000 maximum loan
    • With 3 Guarantors, loan not to exceed 75% LTV of the completed value and not to exceed 80% LTC all-in of the total project costs
    • With five ( 5 ) Guarantors loan of 100% LTC or 80% LTV gross
    • For a land only loan, not to exceed 60% LTV of the As-Is value
    • 9% to 12% interest per year and set after the underwriting,
    • 4 points total
    • 20 year amortization
    • Loan matures in 10 years
    • Interest only payments year one, amortizes beginning year 2.
    • Prepayment penalty (PPP) is 5% for five yrs.
    • Release clause of 85% of sale price
    • Out of pocket fees due upon acceptance of the LOI, and then when a commitment is issued, a commitment fee will be due and applied to the 3rd party and legal costs (commitment fee)
    • Funding date of 30 days after the LOI being accepted

 

 Escrow:

 

Any requirement to escrow the commitment deposit with a law firm, instead of with Sterling, the costs will be higher. They must use our attorneys (http://www.bakerlaw.com ). If they require the law firm to escrow, then a retainer of $5,000 is required so our attorney can bill against this deposit to draw up escrow instructions/contract, and they bill at $730.00 per hour.