I am a Mortgage Broker who has not done commerical loans. I have a client who is interested in purcahsing an existing 48 unit apartment complex, he asked if I had a lender who will do 100% financing. I am not sure about 1. How to get started and 2. Does anyone know of a lender that I can sign up with that doesnot require FHA Approval?

Sorry Helen, I do not. Maybe one of the non-bank lenders here can introduce himself/herself.

Helen,

I havent heard of 100% financing for commercial loans. If you find a lender that even skirts 90% LTV for Appartments please contact me.


- Newcomer

Yes! 80% max LTV is the norm for a full doc. On a stated for example we are able to provide a max of 90% CLTV (That is 75% LTV + 15% Seller 2nd = 90% CLTV). The most important components of a deal where the buyer has little money down are good buyer FICOs and a motivated and helpful seller.

Commercial Capital does Commercial Loans and will sometimes do 100 % Financing

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Under what situations does sometimes (100% financing) apply?

I assume u mean equity financing or in very rare cases a blend of debt and equity for solid projects where pros are involved.

Hypothically, if I had a third party individual who would be willing to give me 20% for DP and take the second position, would lenders have problem giving me 80% first? To elaborate, it'll be on a 12 unit complex which cashflows very well.

I am also looking for 100% help with a $2.4 mil 60-unit. I would like to find a lender who could do 100% or one for 80% and another for a 20% piggyback.

I am also looking for 100% help with a $2.4 mil 60-unit. I would like to find a lender who could do 100% or one for 80% and another for a 20% piggyback.

Sorry about double post ( I made the first one before registering).

We could offer this:

100% FINANCING FOR LAND & PROPERTY ACQUISITION
In Vegas, Manhattan, Atlanta, SoCal, Florida (also, other select resort areas)

$ 2 Million Minimum Loan – Commercial Projects Only
No Maximum!!!

100% LTV First Lien Loan for land takedown, with first right to offer construction/development financing at competitive rates

1-year term with 1-year extension available, fast hard cash (10-12% plus 4-8 lender points, plus broker fees) NO prepayment penalty, NO equity requirement on the part of the lender

Full Underwriting Package required

3-10 Day close (depends on completeness of package)

NO Up Front Fee
NO appraisal required for Las Vegas and other select areas

Site Visit required by Lender

Proof of funds & references provided upon issuance of Commitment

For more information, please contact us

I've seen 100% financing - but "buyer beware". Reading the fine print the lender wanted to be inovlved as a participant in the real estate transaction in that they were involved in the deed, did not guarantee funding, and fine print clearly stated the lender had the option to take over the property if funding did not complete.

As a commercial broker, yes I do know several 90 percenters that are actually decent to deal iwth - but this is for apartments.

Have you considered private money for the amount you need? If given a good rate on their money, a private individual is much easier to work with. The main reason it is easier to work with the private person is that you set the rules & find the person who will go with them, instead of you trying to fit a deal into rules.

Commecial loans are based on the income of the property. Many lenders will go to 100% if there is income to support the debt payments.
The trouble is that this type of property almost never sells for low enough price to do this.
Another way to get 100% is to have a seller carry back but again you have the same problem if the payments don't come to a low enough number for a positive cash fow the deal probably is not going to go anywhere.
There are commecial lenders who look mostly at the borrowers credit, the type of borrower that will 100% from these lenders does not need 100% in fact could probably pay cash.

Hope that helps

what state is this in, the most i can do is 90% stated, if it makes sense it will be done.

There are no "published" 100% commercial loan programs from any lender.
(Except in the case of loans such as construction, conversion, etc. anything that might "add value" to the original purchase price).

If the buyer has good credit and the seller is willing to hold a second of about 20%, there are 95% "published" programs for loans of less than $1,000,000.

There are also "published" programs that will allow the lender to hold a 1st and 2nd loan for a 90% CLTV (combined- loan-to-value) commercial loan (not requiring the seller to participate). Also less than $1,000,000 loans.

Then there are many programs that will do 85-90% CLTV if the seller WILL holding a second.

But for the most part, most commercial loans are 80% LTV or less........

But, since we never say never in this business, 100% commercial loans that do exist, usually are a result of private money/investors. Or, a deal that is so extremely strong or the borrowers so strong as to guarantee the deal.

Feel free to contact us with further questions.
We offer almost all the loan programs mentioned above.......... except 100% not related to construction, etc........

Best Regards,

helen;there are several programs I have used for high ltvs
1.straight 90 ltv no second
2 90cltv 80 1st w/ 10% second in house ,you need high fico/
3.100% ltv private funding you need 3 strong guarantors/signatures
less than hard money
4. of course there the traditional 75/25 80/20 ways of financing apts/multi-family
hope this info helps

I do have knowledge of a lender out of Holland (Netherlands) that will do 100% LTV's on income backed properties. Rates are LIBOR plus a margin (Unstated).

Loans are from USD100,000 however I wish to make 2 points very clear:

1) I have not used these people before and cannot guarantee their service.
2) If you have a full business plan that can be emailed they charge between $12,500 and $15,000 as an application fee plus an additional broker fee on closing.

This service was recommended to me but my clients did not want to pay the application fee and the intended project faded.

I have the application form should anyone want to be the guinea pig?

NEVER pay an application fee or other upfront fee. Only pay for third party reports after you have verified that the lender has the ability to fund and has funded similar deals before.

You could simply of said I do not want to be the Guinea pig

Nothing ventured, nothing gained. And yes, had I a project that needed 100% finance for several million dollars I would take a punt for a mere few thousand.

Hey but then again what do I know, I have no encyclopedia because my partner knows everything

Oh and just as an aside, I deal with several lenders who perform nicely and who have application fees ranging from USD2,500 upwards. Now what you are saying is that none of my clients should of paid those fees and should not really be happy with the loans they obtained because NO-ONE should pay upfront fees according to you. I should tell my bank manager that, the next time I want to apply for an investment property loan. They may all be free where you sit but the rest of the world is not so lucky!

I bow to your superior and in exhaustable pool of knowledge and experience and of course look forward to you reply with eager anticipation.

Application fee does not sound kosher specially on the range described of "..between $12,500 and $15,000 as an application fee...

On other unrelated news, I charge a $20,000 non-refundable application fee for loans up to $10,000 unsecured.

It certainly does not appear to be that popular which is why the lenders are unproven. I guess we will never know. If, later down the track I get a client that is willing to be the guinea pig I will let you know the outcome.

Some lenders do not charge upfront fees but then request a refundable on closing honorarium to cover Due Diligence costs i.e. Swiss Syndication Houses. This is payable 14 days after the issue the Letter of Intent and it is a lot more than the application fee mentioned earlier. Now these people are genuine and proven yet only go to 65% LTV.

Offshore funding is in a world of its own and to be honest the fee scammers have hitched a ride on the backs of genuine loan providers by pertaining to offer similar results on similar charges without ever providing a loan. This does not mean that everyone requesting such fees is a scammer and the genuine providers simply suffer from the actions of others. I think it is dangerous and damaging to lump them all in the same basket and make carte-blanche statements.

The cost of undertaking professional due diligence, viability and syndication reports etc is extremely high but is necessary. If the clients walk away who ends up paying the bills? I have some issues with the credibility of any lender that would be willing to go to such expenses without wanting the bills covered, especially when you are talking loans of several million dollars plus. If it was my money I was lending I would certainly want to ensure the project was genuine and would want the client to cover the costs of finding that out.

I do make a living by providing offshore loans and yet I will admit that I have been drawn in by fraudulent operators which is why I always state if a service is unproven. I have been lucky in as much as I have always managed to find the scam before my clients take a major loss. I am sure my time will come though, as no-one is perfect.

I am a loan officer who can originate loans nationwide, and also have direct access to several true commercial and private lenders.


Here is a brief lsiting of what I can offer:
We offer very creative, out of the box,financing on residential, commercial
hard money, and private money

We can even fund large condo conversion projects at up to 100% LTV
(Min $3MM), as well as 100% LTV on large residential and commercial
construction projects

100% LTV Full Doc, Purc. & C/O refi w/ 520 score

Up to 75% LTV on Private Money Loans

100% LTV on No Seasoning Cash-Out Refis (N/O/O)

100% LTV up to $4M

100% LTV on Condo Conversions

100% LTV True No Doc, Stated

100% Rural up to 20 acres

Up to 90% No Seasoning Commercial Refis

80/20 Modular Homes

Do you have a hard to place project that needs funding ?
Ships, Boats, Planes
Farm Commodities
Bio-Energy
Oil Exploration & Drilling
Mining Operations
Entertaiment Financing: Casino, Film, Nightclubs
High LTV International Loans
Residential and Commercial Construction Pojects
Real Estate Blanket Loans
Business Financing etc

Helen did you find anyone that can offer such a loan? I am looking for 15,000,000 for a condo conversion.

Rayanderson8100@aol.com

Send me some details (overview) on your project by private message on this forum. Interested.

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Ray i'd be interested in the details of your condo conversion and can get the financing you seek

Commercial Capital does do 100% Financing.
This way:
1. With good Fico scores you get a better rate of course. But not necessary.
2. Bad Credit higher rates. And they sometimes want an interest in the project.
But the way you structure your agreement. You pay no interest sometimes.
3. They can close sooner than others.


And they have to know if the property or you, will be able to pay.

Can you tell me something about Commercial Capital?

It's possible to get 100% financing on commercial properties but it applies to very specific property types. Typically these are credit tenant leases (think StarBucks, Best Buy, CitiBank) with corporate guarantees, 10-year leases with 2 options to renew, etc. DSCR can be as low as 1.01 and pricing anywhere from 75-200 basis points above Treasuries. I must add that these days with prices so high, the cash flow usually can't support 100% financing.

Unfortunately, the apartment complex in the original post does not qualify for this. However, it should be possible to get 80% financing without a problem if there is enough cash flow.

Commercial Capital
Apartments/Multi-Family
Office
Retail Centers/Malls
Industrial/Warehouse
Hotels
Golf Courses
Marinas
Self Storage Facilities
Mobile Home Parks
Land
Credit Tenant Lease
Healthcare Facilities
Farm/Ranch/Agribusiness
Specialty Use Facilities

Europe, Australia, Japan and many other "friendly" countries. They prefer $10 million USD and up. No China, Africa, etc. Sometimes, but rarely India. The USA, of course.

They state max 80% LTV