Phone: (412) 362-8682
Address: 461 Melwood Avenue, Pittsburgh, PA 15213
Email: hardmoney@3Ecapital.com, commercial@3Ecapital.com
States They Lend In: Pennsylvania
We specialize in knowing what and how to provide solutions for challenging situations.
Types of Funding:
- Construction Loans
- Development Loans
- Equipment Sale/Leasebacks
- Fleet Leasing
- Floor Plans
- Golf Courses
- Inventory Financing
- Lines of Credit – unlimited/secured and unsecured
- Mortgages – from thousands to tens of millions
- Purchase Order Financing – national and international
- SBA Loans
3E Capital, LLC. offers a wide array of financial packages that stem from Project Equity, Mezzanine Debt, Credit Enhancements, Acquisition Loans to Raw Land and Hard Money. The company’s ability to combine two or more of its programs on a single loan request results in the customization capabilities that only 3E can offer its clients.
An acquisition loan is used to acquire property using the loan proceeds. Funds can be used for improved lot(s) to completed and operating properties.
Acquisition and Development:
Loan is used to both acquire and develop real property to an improved state. Voucher control is set up to disperse loan proceeds with interest only paid on the funds distributed.
Loan for any purpose whereby collateral is put up to secure the loan.
“Debtor in Possession” financing on real property assets until institutional financing is available or the sale of assets.
Loan is used for a short duration of time until permanent financing is set in place. They are an optimal solution to a timely acquisition or business opportunity because they allow the investor to act decisively during time-sensitive proposals.
Loan used to construct a building or other improvements of real property, with the land and improvements as collateral for the loan. Reserve accounts are maintained to disperse funds during construction.
Program utilized by borrowers lacking good credit standings to obtain premium financing from traditional lenders. The Enhancer guarantees the loan for a fee and an equity position.
Funds are utilized for development or repositioning projects, or certain quick close hard money requests
Loan that is subordinate to a Primary Lender. It involves debt that is paid back at a time of sale or refinance with an equity position given back to the lender. Essentially the program lends additional funding when first mortgages have reached their maximum loan amount.
Invests project equity with qualified developers and operators when there is significant opportunity for value and/or cash flow enhancements.
Loan is used for unimproved real property, from lots to acreage.
Commitments until traditional financing commits or shows proof of performance if purchase buyout occurs.
At 3E Capital, LLC, our goal is to provide our clients with the necessary resources and tools to remain competitive in their business market by procuring funds that will increase their profitability and ensure their growth. 3E Capital is a full-service commercial mortgage lender who can help you obtain hard money, bridge loans, and short term loans. We have been able to streamline the loan process into manageable segments, which allows for loan customization, uncomplicated approval processes, and timely closings.
Through the years we have developed relationships with various investors that range from institutional lenders to private lenders that have allowed us to fund projects that traditional institutions normally would not consider. We understand that every business has different needs, but two needs remain constant, time and money. Employing our services offers immediate results with creative capitalization plans that meet the unique set of financial circumstances of each of our clients.
Our team of expert analysts believes that in order to reach the financial objectives of our clients, we must engender a rigorous process of continual research, monitoring of markets, mastering lender guidelines, and fully understanding the exact needs of the client. Our seasoned professionals work closely with each client offering the most responsive service with a tailored loan package to reach optimal financial positioning.
Commercial Lending Ratios
Most of real estate lending can be boiled down to the results of three ratios:
The bulk of the energy spent “processing” a loan is merely an attempt to verify the numbers that go into the numerator and denominator of the above 3 ratios.
The Loan-To-Value Ratio (LTVR) is defined as follows: Loan-To-Value = Total loan balances (1st mtg+2nd mtg+3rd mtg) / Fair market value (as determined by appraisal).
Loan-To-Value Ratios seldom exceed 80% because the lender always want some extra protection against default.
The second ratio that lenders use when underwriting a loan is the Debt Ratio. The Debt Ratio compares the amount of bills that the borrower must pay each month to the amount of monthly income. More precisely, the Debt Ratio is defined as: Debt Ratio = Monthly Debt Obligations / Monthly Income
Obviously someone whose Debt Ratio is 150% is in trouble. A Debt Ratio of 150% would mean that a borrower’s obligations are one and a half times his income. Debt Ratios seldom are allowed to exceed 40% in practice.
Debt Service Coverage Ratio (DSCR)
The final ratio used in lending is the Debt Service Coverage Ratio (DSCR). The Debt Service Coverage Ratio is a sophisticated ratio only used for large loans on income producing properties. It is defined as: Debt Service Coverage Ratio = Net Operating Income / Debt Service.
Net Operating Income is the income from a rental property after deducting for real estate taxes, fire insurance, repairs, and all other operating expenses; and Debt Service is the mortgage payment on the property. Most lenders insist that this ratio exceed 1.0. A debt service coverage ratio of less than 1.0 would mean that the property did not produce enough net rental income for the owner to make the mortgage payments without supplementing the property from his personal budget.