Commercial Loans

-- Identify the difficulties that small business owners have in obtaining commercial financing

-- Discuss how the right lending program can turn those obstacles into opportunities for you and your borrowers

-- Detail how we can serve the specific needs of small business owners

-- Reveal how providing financing solutions for your borrowers can be a lucrative revenue stream for you

-- Many small business owners and commercial property owners cannot obtain financing at a bank.

-- Banks typically don’t have an appetite for small commercial due to the risk involved with the loan.

-- Most small business owners can’t meet the standards of a bank’s strict underwriting guidelines.

-- Even the most aggressive community banks don’t have a commercial lending program that serve the majority of small business owners.

-- The rates and terms of “hard/private” money loans are unaffordable for borrowers looking for long term financing.

-- You can help these borrowers to find alternative solutions.

-- Know when someone wants to purchase commercial property

-- Lose substantial commission when buyers cannot obtain financing

-- Don’t always have internal resources to provide solutions for these borrowers

-- Can profit by referring these borrowers to an experienced mortgage professional

-- The ability to provide access to commercial financing adds value to your business

-- Potential borrowers are easily identifiable within your client base

-- The opportunity to look beyond traditional resources for financing solutions

-- Referral business back to you from both clients and mortgage professionals

-- No more lost commission!

-- Cash to build their business

-- The convenience of having their realtor provide a financing resource

-- No cross collateralization

-- Limited documentation

-- Fully amortizing loans

-- Quick closings

-- Stated Income/Stated Asset

-- Easy application process

-- Flexible underwriting guidelines

-- Decisions based on “common sense”

-- Different programs to meet the specific needs of your borrowers

-- Subject Property

-- Property type

-- Appraised value

-- Requested loan amount

-- Borrower

-- FICO score

-- Investor/Owner User

-- Experience level

-- Clients who wish to purchase commercial property

-- Cash businesses

-- Mom & Pop operations

-- Self-employed

-- Investors/Entrepreneurs

-- Borrowers and corporate entities without extensive management resumes

-- Unable or unwilling to provide business/personal documentation

-- Compromised credit

-- Environmentally sensitive property types

-- Looking for long term financing with no balloons

-- They can’t wait 120 days or more for their loan

-- Apartment buildings

-- Mixed use

-- Retail shops (free standing or store front)

-- Office buildings

-- Warehouses/Self storage facilities

-- Auto repair/Body shops

-- Bar/Restaurants

-- Funeral Homes

-- Will consider other “uncommon” property types

-- Apartment Building - Refi

-- $228,250

-- Borrower had credit problems

-- Needed more cash than the bank would offer

-- Deal closed in 32 days

-- Two Office Buildings - Refi

-- $770,000

-- Cash out/Refinance with blanket mortgage

-- Self-employed applicant (couldn’t document income for the bank)

-- Auto Repair - Purchase

-- $195,000

-- Local banks would not consider this property type due to environmental concerns

-- Deal closed in 51 days

-- Restaurant - Purchase

-- $332,500

-- Cash business – owner unwilling to document full income to the bank

-- Deal closed in 29 days

-- We understand the needs of small business owners

-- Knowledge of the lending environment

-- Strong investor relationship

-- Personal service to meet your clients' specific needs, and strengthen your relationships

Dedicated to service. Committed to Close.

Commercial Real Estate Lending Guidelines*

Loan Amounts: Stated: $100,000 - $5,000,000

Full Doc: $100,000 - $10,000,000

Loan Purpose: Purchases and Refinances. Cash-out refinancing with no limit on cash out.

Initial Fixed Rate: 3, 5, 7,10 and 30 year options available

Term: 30 Years

Amortization: All loans fully amortized up to 30 years

Loan-to-Value: Up to 80% / CLTV’s up to 90% with subordinate debt.

(Class I – 80% LTV, Class II – 75% LTV, Class III – 70% LTV)

Debt Coverage Ratio: Minimum: 1.20

-Need a “DCR Buster”? – ask about our discretionary income program.

-No DCR requirements on Owner-user properties with loan amounts up to $600,000!

Prepayment Penalty: Interest Guarantee matching initial fixed period (Buy-downs/ Buy-outs available)

Quick Close: 30 – 45 Days!

Properties:

· Class I: Multifamily (5+ Units) & Mixed-Use

· Class II: Office, Retail, Warehouses, Self-storage, & Mobile Home Park’s

· Class III: Light Industrial, Automotive, & Special Purpose (Restaurant & Hotel/Motel)

Why Axis Real Estate, Inc.?

· No Loan committees – Streamlined approval process

· No lender is more dedicated to service or more committed to close.

Call today!

Karl Niederer

858-503-0113

We have a program that provides commercial financing to those who are underserved by traditional lenders

We have a program that doesn’t verify income or require personal tax returns.

We have a program that only uses your commercial property as collateral

We have a program that allows for unrestricted cash out

Do you need a lender that will listen to your story?

We have a program with flexible “common sense” underwriting

We have a program that handles unique property types

We have a program with fully amortizing loans and no balloons

We have a program that gets most qualified applicants their cash in under 60 days

?? No income verification

?? Commercial real estate secured

?? Unrestricted cash out

?? Able to see viable deals where traditional lenders fail

?? No balloons

?? Quick closings

?? Commercial is different than residential

?? Limited lender availability

?? More comprehensive appraisals

?? Environmental reviews

?? Fee structure based on risk

?? Every loan is different

?? We understand the needs of small business owners

?? Knowledge of the lending environment

?? Strong investor relationship

?? Personal service to meet your specific needs

5+ multi-family

mixed-use

office/retail/warehouse

light industrial/automotive

special purpose (specify purpose)

 
owner-operated or
investment?

urban
suburban
rural

6. Do you have a purchase agreement or letter of intent? This will avoid pre-qualifying borrower who is just shopping to get preapproved without property.

If 10% down, is the seller willing to carry back a 2nd mortgage? If yes, we can go up to 90% CLTV.

• Clients without sufficient credit history
• Business owners who want to take cash out of their property
• Entrepreneurs and self-employed people who want to purchase a site for their business
• Real estate investors who wish to put as little as 10% down (allows CLTVs up to 90%)

our typical borrower is a small business owner or investor underserved by the traditional lending market for a variety of reasons.

Under-served Borrowers

"I’ve already been turned down by my bank.” “A lot of my business is cash. I just don’t have the paperwork.” “I have plenty of paperwork, just not the time.” “The bank wanted a balloon payment on the loan, I’m not risking that.” “I went to four banks.  They won't even lend money on my property type.”   “Let me tell you about the Capital Loan Program …”

  We look for the following property types:

• Mixed use (Example: retail store with an apartment on top.)
• Multi-family (Example: 5+ unit apartment building.)
• Office (Example: Local printer, doctor, insurance agency, etc.)
• Retail (Example: Pet store, hardware store, small market, etc.)
• Warehouse (Example: Inventory or self-storage facility.)
• Light Industrial (Example: electronics manufacturing – no cranes, etc.)
• Automotive (Example: Auto body repair shop.)
• Special Purpose (Example: restaurant, car wash, funeral home.)

1. Prepayment Penalty and Interest Guarantee

A pre payment is a common feature with commercial loans. Since most of the commercial loans that I put borrowers in are not designed to be short-time financing solutions, the banks I work with charge a pre-payment penalty to be imposed in the event of an early payoff. The interest guarantee period does not prevent the payoff of a loan. It is an agreement to pay all of the interest that would have been due during this time period.

Please Note - The prepayment penalty fee may be avoided after the interest guarantee period has expired and property is conveyed by assumption of the mortgage. Prepayment penalties vary by the term of the loan. Please consult with your loan officer.

2. Appraisal Fee

Our lender determines which appraisal firm is used. The reports are very detailed, and require extensive research and investigation. The cost of the report reflects the level of information and analysis required by our investor. An appraisal report with two valuation approaches is sometimes required so that the appraisal analyst can fully appreciate the market area to justify the subject's appraised amount. This appraisal type will include all of the necessary research and investigation required to make a prudent lending decision for a stated income/asset program. The cost for an appraisal with two valuation approaches amy be in the $1,500 to $3,500 range. Our lender reserves the right to order a sales only report based on property type and location. These reports are usually lower in cost and result in faster turnaround times.

Our lender will order a commercial appraisal once an upfront appraisal process fee is paid to their agent, Mercury Real Estate Services, LLC. Again, this fee ranges from $1,500 to $3,500.

For more information on the way the commercial appraisal process is handled visit http://www.sandiegocommercialfunding.com/

3. Taxes and Insurance Escrows

Non-payment of taxes and insurance place an unacceptable risk on the lender. In some cases of unpaid taxes, the lenders first lein position is compromised. Our lender requires that an escrow account be established to cover the taxes and insurance premiums due for the subject property. Our lender reserves the right to waive escrow of insurance premiums based on the borrower's qualifications.

4. Interest Rate

The interest rates available for a stated income/asset program (no verification) reflect the increased risk assumed by the lender. However, the lenders that I work with are very competitive and can finance loans that the banks will not. And, with the ease of stated income/ asset programs, the rates are not as high as private money loans.

5. Loan to Value

Loan to Value (LTV's) are consistent with the stated program reflecting risk assessment. Because commercial properties may be less liquid than residential properties, an equity cushion must be maintained to compensate for the risk involved. A liberal 90% CLTV (combined loan to value) program is offered to assist buyers with limited cash assets to buy commercial property. In fact, many full document lenders will not allow for any type of seller-held second and will limit the amount of cash-out in a refinance transaction.

6. Environmental Due Diligence

Our lender performs an Environmental Due Diligence on every commercial property being considered as collateral. That process has been simplified by requiring the property owner or borrower to complete an Environmental Questionnaire describing the history and present use of the subject property. Some properties may require Phase I and/or Phase II reports.

7. Terms 15, 20, 25, and 30 year terms

Our lender provides several term options. These loans are fully amortizing without a balloon payment. Most commercial lenders require a balloon provision on their notes. Balloon provisions are very costly to you, the borrower, because it forces the borrower to seek new financing in the future.

For more information on the commercial loan process please visit our main website at www.SanDiegoCommercialFunding.com or call us today to get started 858-503-0113