Loan for single tenant NNN

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Commercial loan
Posted by: Gordon Jul 25 2004, 03:11 PM
I am interested in obtaining a loan for single tenant NNN property. I would like to know some industry standards for qualifying the property. I have 200k cash for down payment.
Posted by: loanuniverse Jul 26 2004, 12:20 PM
The lender is going to want to see:

– Corporate tax returns for the last three years. {These are for the real estate holding company, which I assume you have the property under}. I know is triple net, but still…
– A full detail of the expenses involved in the property. Even if all of them are being paid by the tenant.
– A copy of the lease.
– Some information about the tenant.
– A copy of the last three years of personal tax return for the principal as he will most likely be asked to guarantee.
– A personal financial statement for the principal.

There really aren’t “industry standards”, but the following are common terms and structures.

– A maximum 75% to 80% loan-to-value.
– Anywhere from five year loans with twenty year amortizations to fifteen year fully amortizing loans.
– Rates from 4.75% to 9.00% {depending on the risk, aggressiveness of the lender, and amortization}

I just realized that you mentioned down payment so this means you are looking to purchase instead of refinancing. If that is the case, scratch the three years of corporate tax returns and replace it with “copy of purchase contract”.
Author: Commercial Loan Underwriter