Drexel Brothers Product Sheet Updated 9/3/2014

Transcription

1 Drexel Brothers Product Sheet Updated 9/3/2014 Permanent Commercial Financing Drexel Brothers Bank Type Products 1. FULL RECOURSE SBA 504 PROGRAM Minimum 680 FICO, full tri-merge credit report with scores Up to 25 years 3 & 5 Year Fixed Options Loan Size $750K to $8M Max LTV Up to 90% Debt Service Ratio 1.20 DSCR on existing cash flow basis Interest Rate Prime Hospitality, Single and Purpose Pre-Payment Penalty 5% 5 Years Acquisition of Owner Occupied Properties National Major cities, strong economic viability *Adding a SBA 7a program soon 2. SPECIAL & MULTI-USE PROPERTY TYPES Minimum 640, ideally 680 FICO, full tri-merge credit report with scores Up to years with full fixed options Loan Size $400K to $16M Max LTV Up to 75% Debt Service Ratio Case by case Interest Rate 5-6% Hotels, Assisted Living, Self-storage, Schools, Day cares, Restaurants (case-by-case), Funeral Homes, Food Processing, Hospitality, Medical/Dental offices, Industrial & Manufacturing (including heavy), and more Pre-Payment Penalty Step Down Prepay, Flat Prepay, Yield Maintenance. Typically step-down prepayment penalties during the fixed rate portion of the loan Nationwide

2 3. APARTMENT / MULTIFAMILY Minimum 680 Up to 30 years 3, 5, 7, and 10 fixed options Loan Size $250K to $10M Max LTV Up to 75% Debt Service Ratio 1.20 Interest Rate Start 4.8% Stabilized properties 5+ units (mixed-use up to 40% commercial permitted), student housing, and senior, section 8 Pre-Payment Penalty Step Down Prepay, Flat Prepay, Yield Maintenance. Typically step-down prepayment penalties during the fixed rate portion of the loan Foreign nationals (50% LTV), gifts on down payment, seller seconds allowed, non-recourse Nationwide 100,000+ population 4. MOBILE HOME PARKS Minimum 680 Up to 25 years 3, 5, 7, and 10 fixed options Loan Size $750K to $5M Max LTV Up to 65% on purchase, 60% on refinance Debt Service Ratio 1.0 to 1.35 Interest Rate Start 4.8% Three-Star rated parks or better, Minimum of 50 pads or sites, Minimum of 50% of coaches to be double-wide or better, Paved roads and skirted coaches, No more than 10% Park owned coaches. Pre-Payment Penalty Prepayment Penalty: Typically step-down prepayment penalties during the fixed rate portion of the loan. Non-Recourse Lender, Assumable, Layered risk-based pricing to ensure lowest rates & several prepayment options keep the borrower in control Nationwide 100,000+ population requirement

3 Permanent Commercial Financing continued Drexel Brothers Bank Alternate Products 5. COMMERCIAL ALT 1 STATED Minimum 650 Up to 30 years 3 & 5 fixed options Loan Size $100K to $2M (up to $5M case by case) Max LTV 75% Multi-family & mixed-use, 65% all other (-5% for all cashout, -5% for new borrower) Debt Service Ratio 1.25 Interest Rate 7.49 to 9.99% Multifamily (5+ units), mixed-use, office, retail, warehouse, selfstorage, mobile home parks, auto-service (no old gas stations or underground storage tanks) Pre-Payment Penalty 5% for fixed period NO TAX RETURNS REQUIRED, All cash out available, Seller second up to 80% CLTV, seller assist 3% of total loan amount, population requirement 25k or 25miles of 100,000 city Nationwide except AK, HI, MI, OH, AZ, VT, SD, WV, & Cook Cty IL 6. COMMERCIAL ALT 2 MICRO SMALL BALANCE CASH FLOWING Minimum 600 (under 600 case by case) 25 year fixed Loan Size $25K to $500k ($750k for exceptional) Max LTV 70% Debt Service Ratio Case by case Interest Rate 9 to 12% Most considered Pre-Payment Penalty 5 Years, 5% year 1, 4, 3, 2, & 1 No income verification, all cash out available Nationwide except AL, AL, HI, WV,VT, NV, MI, ND & Cuiahoga Cty OH, & Los Angeles CA 7. CHURCH LOANS Case by case, submit executive summary, Nationwide

4 8. 1 TO 4 INVESTMENT PROPERTIES (NON-PORTFOLIO, NON-OWNER OCCUPIED, NO BLANKET) 650 or higher 30 Year 3 or 5 year fixed Loan Size $100K to $2M Max LTV 75% Multi-family & mixed-use, 65% all other (-5% for all cashout, -5% for new borrower) Debt Service Ratio 1.2 Interest Rate 7.5 to 8.5% Residential investment properties only Pre-Payment Penalty 5% fixed period NO TAX RETURNS REQUIRED, All cash out available, Seller second up to 80% CLTV, seller assist 3% of total loan amount, population requirement 25k or 25miles of 100,000 city Nationwide except AK, HI, MI, OH, AZ, VT, SD, WV, & Cook Cty IL 9. LARGE PORTFOLIOS 680+ Full recourse (620 for non-recourse lock box special*) 30 Year 5 & 10 Year fixed (swap) Loan Size $500 to $50M Max LTV 75% (foreign nationals 50%) Debt Service Ratio 1.2 Interest Rate 5-6% for Fixed Period Residential, mixed-use (less than 40% commercial, & 5+ units Pre-Payment Penalty Case by case Release of an individual property will be permitted upon prepayment by Borrower of 120% of the allocated loan amount of the properties being released, subject to customary conditions, including that the DSCR after release shall not be lower than the amount immediately prior to release and the level on the date of the initial loan closing. Foreign nationals & section 8, noncontiguous properties Nationwide

5 SHORT TERM OR BRIDGE COMMERCIAL REAL ESTATE FINANCING 10. NON-RECOURSE BANK TYPE BRIDGE LOAN Minimum 680 FICO, full tri-merge credit report with scores Months Loan Size $3M-$25M Max LTV Up to 75% Debt Service Ratio 1.20 DSCR on existing cash flow basis Office, retail, industrial, multi-family, & hospitality Pre-Payment Penalty None Refi, acquisitions, lease-ups, reposition / transitional properties, tight closing deadlines, refi balloon, partner buy-out This program is perfect for quick closings of large loan amounts; to acquire a property in foreclosure, or to lease-up an underperforming investment. Sponsors can take advantage of short terms to improve property cash flow and max out proceeds and pricing when refinancing into a permanent financing structure such as CMBS. Unlike hard money loans, bridge loans generally have better rates and terms and are secured by higher quality properties National, Major cities, strong economic viability 11. HARD MONEY / BRIDGE I SMALL BALANCE No score minimum (credit report required) 12 to 24 months Loan Size $50K to $3M Max LTV 80% of purchase price (no rehab or closing costs, can cross collateralize for expense) Debt Service Ratio No requirement Interest Rate 12% Interest Only Most considered Pre-Payment Penalty None Purchase, rehab, or cash out refinance Revolving credit line on portfolios or serial investors National except AZ, NV, CA, SD, & MN 12. HARD MONEY / BRIDGE II LARGE BALANCE No score minimum (credit report required) 12 to 24 months Loan Size $50K to $10M Max LTV 65 to 70% Debt Service Ratio No requirement

6 Interest Rate Pre-Payment Penalty 10-15% Resi & 12-18% Commercial Most considered, cash flow basis None Purchase, rehab, or cash out refinance Can finance non-performing notes National % FIX AND FLIP 680+ or higher, VERY STRICT 9 months Loan Size $75k to $600k Max LTV 100% Debt Service Ratio No requirement Interest Rate Prime Residential investment Pre-Payment Penalty None Purchase & rehab THIS PROGRAM IS EXCEPTIONALLY HARD TO QUALIFY FOR, SPOUSAL GURANTEE, 680 FICO, PERSONAL SINGLE FAMILY HOME COLLATERAL 11 STATES ONLY, AVAILABLE IN OH, PA NY, NJ, NC, SC, TN, IN, IL, MO, KS 14. CONSTRUCTION Case by case, submit executive summary, SELECT STATES ONLY, Available in WA, OR, CA, ID, NV, UT, CO, TX, AZ, PA, NJ, DE 15. LAND / LOTS Case by case, submit executive summary, SELECT STATES ONLY, Available in WA, OR, CA, ID, NV, UT, CO, TX, AZ DOCUMENT CHECKLIST TO RECEIVE FORMAL LOI BANK TYPE 3 Years Federal Income Tax Returns Personal and Business (also include for affiliate entities in which principals hold 20% or more ownership. For affiliate entities in which principals hold less than 20%, K1 statements are needed for the previous three years) Current Year-to-Date Interim Financials (Profit & Loss and Balance Sheet) for Borrowing Entity and Affiliate Entities Current Business Debt Schedules for Borrowing Entity and Affiliate Entities SBA Personal Financial Statements for each principal owner of the Borrowing Entity Resumes for each principal owner Business Overview and History explain why the loan is needed and how it will help

7 MULTIFAMILY Current rent roll. Critical information: unit #, bedroom/bath count, tenant last name, current rent, move-in dates (especially for recent move-ins or rent controlled markets), and which tenants (if any) receive rental assistance Operating statements for 2012, 2013 and YTD Schedule E s/8825 s are preferred on refinance transactions. Provide a separate schedule if there are capital improvements or non-recurring expenses imbedded in the operating statements Borrower Profile for each Key Principal any individual with an interest of 20% or more including summary information regarding stated liquidity, net worth, outside income (if applicable) and ownership/ management experience (if any). On refinance existing loan amount, existing lender, and purposes of cash out proceeds if applicable Photographs of the property A copy of the executed purchase and sale agreement if applicable BANK ALTERNATE 1003 Tri-merge credit (not less than 30 days) Current pictures of the property Drexel Brothers executive summary Current rent roll (if applicable) 2 years P&L w/ income and expense REHAB 2 Years Tax Returns Form 4506-T (Current) Current 2 Months of Bank Statements Tri-merge credit report (under 30 days) Purchase & Sales Agreement Loan Application Form Borrowers Authorization Form Appraisal Payment Authorization Form List of rehab work needed and cost breakdown (if applicable) PORTFOLIO Data Tape of Properties Trailing 6 months or Trailing 12 months on properties No tax returns on deals below 2 million Personal financial statement PFS with liquid assets and net worth 2 years of the operating history on the properties (not tax returns)

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