How prepared are you to meet these lending parameters?
If you have been reading the newspapers, checking your computer news, or watching TV, you are very much aware of the current conditions in the financial marketplace. What we are experiencing is a total lack of interest in financing any type of commercial mortgage product on the part of local, regional and nationwide lenders. Their excuses are many and their interest few and far between.
We are going through challenging times and the typical lender as we know them today is almost impossible to find. We at AMG Commercial Mortgage Group did see this coming, (not that we are the great soothsayers from the Far East) toward the end of 2007. We felt that when the bubble does burst (and it did) we would have to seek lenders that would consider financing programs “outside the box”. We refer to them as “Non-Traditional lending sources”, and they are made up of Trusts, Foundations, and Hedge Funds.
Their loan to value (LTV) and terms are much higher, they will consider transactions both on a domestic as well as on an international basis, however, they prefer higher loan requests and require from the client, a joint venture (JV) partnership. Therefore, our firm is considering all loan requests for initial due diligence and basic underwriting. If it fits the perimeters of the Trust, we can move forward to the application stage. NO upfront lender fees are required, underwriting is streamlined, and in most cases, all exhibits and third party reports are electronically forwarded to the lenders underwriting staff. If all parties cooperate, the transaction can be completed in a 90 day period of time.
Before you submit your loan request to our firm or your broker of record, are you able to supply us with:
- A feasibility/viability study
- A professionally detailed business plan
- Current equity injection
- Updated financial statements
- Cash flow analysis for up to a 10 year term
- Resumes of the principals and the organization
- Source and use of funds
Once an initial interest is created and the Trust offers you the invitation to submit, a conference call is completed with all parties, followed up with a face to face meeting and collection of exhibits to complete the due diligence/underwriting of the Trust. At that stage, the client is totally in the direct hands of the Trust Underwriter. Funding usually occurs within 30 days following final commitment. How prepared are you to meet these lending parameters?