Minnesota, Wisconsin, Iowa. Loans in Colorado considered.
Rate Structure:
Variable, with a floor. Increasing with the prime rate. Interest Only
Loan Term:
1-18 months
Transaction Types:
Acquisition, cash out refinance, renovation.
Property Types:
Multifamily contiguous (5 units or more) and Qualified commercial real estate properties
Loan Amount:
$350,000 to $5,000,000.
Ownership:
Individuals, corporations, partnerships, LLC’s
Recourse:
Personal guarantees required on all loans
Rates:
11.5% to 17% depending upon transactional risk and loan size
Origination Fees:
1% to 3%
Purchase Down payment
Minimum of 20%. Seller carry backs allowed.
LTV:
Maximum of 70%
Utilities:
Public or private
Debt Coverage
1.10-1.3. Exceptions considered
Security:
First mortgages, second or wrap seconds considered, as well as contracts for deed and sale-leasebacks. Assignment of leases and rents, pledge of ownership interests, UCC on additional collateral
Prepayment Penalty:
None
Closing Costs:
Appraisal, environmental, legal, closing and title, and other standard expenses.
Discounts
Based on transactional risk.
Closing Time:
Expedited
Second and Wrap Second Mortgage Programs
Locations:
Minnesota, Wisconsin, Iowa. Loans in Colorado considered.
Rate Structure:
Variable with a floor. Increases based upon the prime rate, or the index of the underlying first mortgage. Interest only.
Loan Term:
1-18 months
Transaction Types:
Cash out refinance, renovation.
Property Types:
Multifamily contiguous (5 units or more) and Qualified commercial real estate properties
Risk of Due on Encumbrance-First Mortgage:
Subject to legal review
Loan Amount:
$350,000 to $5,000,000.
Recourse:
Personal guarantees required on all loans
Rates:
Minimum spread of 3% between first and wrap second mortgages.
Ownership:
Individuals, corporations, partnerships, LLC’s
11.5% to 17% depending upon transactional risk and loan size
Origination Fees:
1% to 4%
LTV
Maximum of 70%
Debt Coverage
1.2-1.3. Exceptions considered.
Security:
Second mortgage lien, wrapping first mortgage. Secondary assignment of leases and rents, pledge of ownership interest, UCC on additional collateral.
Prepayment Penalty
None
Closing Costs:
Appraisal, environmental, legal, closing and title, and other standard expenses.
Discounts
Based on transactional risk.
Closing Time:
Expedited
Gap or Bridge Loans
Locations:
Minnesota, Wisconsin, Iowa. Loans in Colorado considered.
Rate Structure:
Variable with a floor. Increasing with the prime rate. Interest only.
Loan Term:
1-18 months
Transaction Types:
Acquisition, refinance, change of use, renovation, foreclosure by out, bankruptcy or debtor in possession, partner buy outs, tenante improvements, and other similiar situations.
Loan Amount:
$350,000-$5,000,000.
Ownership:
Individuals, corporations, partnerships, LLC’s
Security:
First mortgages, second or wrap seconds considered, as well as contracts for deed and sale-leasebacks. Assignment of leases and rents, pledge of ownership interests, UCC on additional collateral.
Recourse:
Personal guarantees required on all loans
Origination Fees:
3%-5%
Rate:
11.5% to 18%
Other fees
Discount, depending upon project risk.
Purchase Down Payments
Minimum of 25%. Seller carry backs and seconds allowed.
LTV
70% maximum
Prepayment Penalty
None
Closing Costs:
Appraisal, environmental, legal, closing and title, and other standard expenses.
Short-Term Lending
Locations:
Minnesota, Wisconsin, Iowa. Loans in Colorado considered.
Rate Structure:
Variable with a floor. Increases based upon the prime rate. Interest only.
Loan Term:
Monthly, with a minimum of three months, and maximum of 12 months.
Transaction Types:
Acquisition, refinance, change of use, renovation, foreclosure buy out, bankruptcy or debtor in possession, partner buy outs, tenant improvements, and other similar situations.
Property Types:
Multifamily contiguous (5 units or more) and Qualified commercial real estate properties
First mortgage lien on the subject property. Second or wrap seconds considered, as well as contracts for deed and sale-leasebacks. Assignment of leases and rents, pledge of ownership interests, UCC on additional collateral.
Prepayment Penalty
None. Thirty day notice of payoff required.
Closing Costs:
Appraisal, environmental, legal, closing and title, and other standard expenses.
Closing Time:
Expedited
Condo Conversion Loans
Locations:
Minnesota, Wisconsin, Iowa. Loans in Colorado considered.
Rate Structure:
Variable with a floor. Increasing with the prime rate. Interest only.
Loan Term:
1-18 months
Transaction Types:
Acquisition and renovation of 2-40 unit properties, subject to loan minimums and maximums. Renovation portion not to exceed 50% of completed value-exceptions granted.
Property Types:
Multifamily contiguous (2 units or more), NOO investment only. Qualified commercial real estate properties acceptable for condo conversion.
Discount or profit sharing, depending upon project risk.
Purchase Down Payments
Minimum of 25%. Seller carry backs and seconds allowed.
LTV
As is purchase or refinance-70%. Drawing to 70% of completed appraised value.
Draws:
Monthly draws, disbursed upon inspection verification.
Partial Releases:
Partial releases for sold units upon payment of 125% of the loan amount attributable to the unit.
Reserves:
Interest, real estate taxes, insurance, and other holding costs.
Additional Documentation:
Contracts, sworn construction statement, plans, specifications, building permits, zoning letters, builders risk insurance.
Construction Performance:
Borrower must have demonstrated construction experience, or the work must be completed by a licensed general contractor.
Exit Plan:
Must demonstrate the ability to sell completed units via a marketing and sales plan acceptable to Lender.
Renovation Loans
Locations:
Minnesota, Wisconsin, Iowa. Loans in Colorado considered.
Rate Structure:
Variable with a floor. Increasing with the prime rate. Interest only.
Loan Term:
1-9 months
Transaction Types:
Acquisition and refinance renovations. Must be for renovation only, no ground-up construction. Renovation portion not to exceed 50% of completed value-exceptions granted.
Property Types:
Multifamily contiguous (5 units or more) Qualified commercial real estate properties
