Address: 1835 NE Miami Gardens Dr, Ste 451 North Miami Beach, FL 33179
States They Lend In: Florida
BASIC COMMERCIAL LOAN CRITERIA ARE THE FOLLOWING
- Property / asset types: note purchases, single family home aggregation (blanket loans), hospitality, retail, office, industrial, land (strategic infill only), mobile home parks, and construction draw loans (residential and commercial)
- LTV: no more than 65%
- Loan Size: minimum of $200,000; maximum of $15,000,000
- Term:one to three years
- Type:interest rate only with balloon at maturity
- Rate:adjustable, on an annual basis. Our rates start as low as 8.75%
- Points:starting at 1.75%
- Pre-payment penalty:none
What are your loan requirements?
First, and most importantly, we only make first lien loans (no exceptions – not worth even asking for us to waive this requirement). Our goal is to offer the lowest rate and points that we can while in turn always making sure that our risk of making a bad loan is low. We do not undertake to enter into “loan to own” transactions, however, in all cases we underwrite each of our loans and stress our models so that if the underlying real estate collateral has to be sold to pay us back we are comfortable that we will recoup 100% of our capital including costs. This underwriting philosophy typically means that we do not lend on more than 65% of the value of the real estate collateral being pledged. We also require personal guarantees. Basically if you can’t or won’t go to a local bank for a loan and you are looking for a 65% loan to value or less, we believe we are the best deal in town.
What types of Collateral do you lend on?
We lend only on real estate assets. We do not lend on operating businesses, royalties, judgments, etc. We lend on many different kinds of real estate assets including:
- Single Family Homes
- Hotels and other Hospitality type assets
- Construction loans (both on commercial and residential assets)
- Multi-asset blanket loans
- Industrial property (warehouses, etc.)
- Retail property (strip centers, single tenant, stand alone, etc.)
- Office buildings and office condos
- Multi-family properties and mobile home parks
- Mixed-Use properties
What are the interest rates that you charge, the typical term, loan type and how many points?
We make many of our loans at an interest rate as low as 8.75% and 1.75% points. Our loan term is typically 1-3 years. Our loans are almost always interest only and rates are variable in nature with the rate resetting once a year based on a margin over an underlying U.S. Treasury index. We typically do not charge any pre-payment penalties, whatsoever.
What are your loan processes and timelines?
On Commercial Loans before issuing a term sheet or asking for an application to be submitted, we typically ask for the borrower to send us the address of the collateral and the requested loan amount. We then usually take no more then 24 hours to get back to the borrower to give them a decent indication our interest and terms. If both parties are on the same page we often times issue a term sheet that spells out in detail the terms and requirements of the loan. We then conduct detailed due diligence on the asset, collect information on the borrower and have one of our outside attorneys start drafting loan documents and reviewing title. At this stage, we will ask that the Commercial Borrower to deposit a small amount of money with the aforementioned attorney (this amount is credited at closing) and we strive to get the loan closed as fast as the borrower can submit the required information. We have closed commercial loans in as fast as 4 days, but our typical commercial loan closes in 10-14 days from issuance of a term sheet.
On Residential Loans the process is similar, however we require a full application to be submitted and we then usually distribute a full set of loan disclosures as required by the law