Commercial Financing Posts

Prime Rate Watch

2008-02-03T19:17:00.000-05:00

On January 30th, 2008 prime rate has dropped to 6%, right after another very steep decrease from 7.25% down to 6.5%. This is a great news for a commercial mortgages industry as prime is one of the main indexes for interest rate pricing. This means that all the notes originated in 2006 and 2007 are now prime candidates for refinancing. And if property has 1 year seasoning even a cash out refinance will be an attractive option.

Interesting to note that prime was as low as 4% at the end of 2003 and then was going up until 7/2006 when it picked at 8.25%. Right now prime rate is at the level of 6/2005 and hopefully will continue it's fall.

$2.37 Million Loan for 23,000-SF Office Building in Sanford, FL

2007-09-19T19:21:00.000-04:00

Sanford -World Capital Source, Inc. FL has arranged financing for a $2,370,000 loan secured by the office complex. Permanent financing has taken out coming due Mercantile Bank’s note.

Constructed in 2004, the 3 story building is occupied by the professional grade tenants and is strategically located just a few blocks from major highway I-4.

Office Space commercial mortgages can be financed up to 90% LTV on the purchase and up to 85% on refinance. The note can have a below 7% rate (as of this month) for a fully amortizing 30-year note.

There are other programs for higher risk grade scenarios with higher pricing that can accept principal guarantors with credit scores as low as 570 fico.

Assisted Living Facility Financing Programs

2007-08-30T18:46:00.000-04:00

WCS have posted general guidelines on available programs for Assisted Living Facilities (ALF) commercial mortgages. It is apparent that generally ALF are limited to 75% loan to value, but can qualify for 90% on SBA loans. This explains why when purchasing of this facility needs financing SBA is number one choice (SBA notes are not common source for refinance loans). Although, one should be aware of the disadvantages of SBA financing, not only it is a tedious process, but it involves higher closing costs and heavy prepayment penalties.
Go to http://worldcapitalsource.com/WCS/programsbypropertytypes/alf.html for the complete guidelines table.

Commercial Lending Terminology

2007-08-21T20:26:00.000-04:00

WCS has added terminology page with detailed description of the most widely used commercial lending terms. We will be adding more details and examples as website develops.

Comparison on HUD/FHA and Fannie Mae Multi-Family Financing Programs

2007-07-27T13:41:00.000-04:00

Ever wondered what are advantages/disadvantages of the two popular apartment mortgage programs?
Now you can quickly compare those by visiting this link.

Stay tuned we will update our site with guidelines on Freddie Mac, CMBS, Pension Funds and Insurance Companies.

Apartment (Multi-Family) Complex Analysis Tools

2007-07-22T21:07:00.000-04:00

WCS has posted valuable resources for multifamily property investors.

Now on our website you may find:

Comprehensive guide to key analysis ratios. From GRM to Cap rate. Do your homework before investing!
Sample rent roll.
List of standard apartment complex expenses, match it with the operating statement, and check if anything is missing.
Still need help? Great news: our initial consultation is free.
Click here to go directly to those tools.