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"Hard Money"
Mortgage Lending Program
Minimum $750,000
Short term first mortgage on select commercial real estate properties with the following rates and terms:
| Eligible
Locations: |
East Coast of Continental
US - other locations case by case |
| Eligible
Properties: |
Multi or single-tenant,
select special purpose, income-producing commercial real estate properties. Land case by case. |
| Eligible
Transactions: |
Acquisition or refinance; high vacancy, condo conversions, change of use, bad credit, bankruptcy, d-i-p, reposition, seasoning, debt buy-down, foreclosure, liens and judgments, partner buy-out, etc. |
| Transaction
Size: |
$750,000 to $10 million |
| LTV-LTC: |
Lessor of up to 60% of appraised "Quick Sale Value" or actual purchase price |
| Security: |
First mortgage lien
on the subject property(s), assignment of all permits and approvals, assignment
of leases, pledge of partnership interests, personal guarantee of principals,
UCC on other collateral |
| Ownership: |
Single asset, special
purpose entity. |
| Application
Fee: |
$1,500 to
$2,500 is due with the signed Application |
| Origination
Fee: |
5-8% of loan amount
payable at closing |
| Exit
Fee: |
None in most situations |
| Commitment Deposit |
1% of loan amount or at least $10,000, payable upon acceptance of Loan Commitment for site visit, 3rd party costs, legal and closing. Balance applied towards Origination Fee or refunded at closing. |
| Prepayment: |
6 month interest guarantee |
| interest
Rate : |
12%-18% fixed, interest
only.or amortizing |
| DSC: |
1.10x-1.30x depending
on transaction or interest reserve required |
| Recourse: |
Full personal recourse
to each principal of the Ownership entity. |
| Loan
Term: |
12-18-24 months plus option for 12 more months |
| Reserves: |
Mortgage interest if required,
real estate taxes, hazard insurance. |
| Second Mortgage:
|
Possible with permission
of Lender |
| Exit Strategy: |
Heavy concentration
on value creation, market analysis and exit strategy. |
| Third
Party Reports: |
MAI Appraisal, Phase
I environmental, feasibility and others if required, ordered by Lender at
expense of Borrower. |
| Closing
Time: |
2 week Quick-close with completed 3rd party reports;
or 30 days from completed Application |
At no charge,
a detailed loan offer will be forwarded upon completion of initial analysis.
BROKERS ARE PROTECTED
© Sterling
Commercial Capital, August 2009. Subject to Change Without Notice
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