The Commercial Loan Fund’s Post

Understanding Amortization: Your Guide to Smarter Loans

Tired of paperwork from traditional lenders slowing you down? It's time for a change with Lite Doc Loans! Why Lite Doc Loans? - Less Paperwork  - Quicker Approvals  - Flexible Income Verification Read our blog now to see how Lite Doc Loans can simplify your real estate financing. #RealEstateInvesting #RealEstateLoans #LiteDocLoans #PropertyInvestment #RealEstateFinance #InvestmentLoans #RealEstateInvestor #AlternativeFinancing #InvestmentOpportunities #CommercialRealEstate #PropertyDevelopment #FlexibleFinancing #RealEstateTips #MortgageLending #RealEstateFunding #InvestmentProperties #PropertyInvestors

The Comprehensive Guide to Fixed-Rate Loans: Stability in a World of Uncertainty

The Pros and Cons of Variable-Rate Loans: A Comprehensive Guide

Whatever You Need to Know About Split Second Loans

Contrary to common belief, loans funded by private lenders are not "no documentation" loans. Although #privatecredit loans typically have shorter terms and offer flexible interest servicing options, they still require evidence of borrower solvency and capability to service payments. This assurance is validated through an Accountant’s Declaration, which confirms the borrower’s financial stability without detailing income or expenses. 🔎 🔎 🔎 Read our article in full here: https://lnkd.in/gEcufT2h While private loans may not demand full income disclosures, they are structured to ensure responsible lending, with options for interest servicing or prepayment tailored to meet individual borrower needs. The bottom line? Private lenders ensure due diligence, offering flexible solutions tailored to borrowers while maintaining financial prudence. Need guidance? Please reach out to me directly Sanjay Anand sanjay@vadoprivate.com.au 0424 486 788 Simon Arraj Paul Abraham Vado Private #VadoPrivate #privatelending #privatecredit #mortgages #lender #brokers #property #credit #privatelender #realestate #development #financetips #financebroker #commercialfinance #construction #residential #land #education #finance #propertyfinance #realestateinvesting

CM1 Loans CM1 loans represent the highest quality commercial mortgages with the lowest risk profile. Minimum debt service coverage ratio (DSCR) of 1.50 on a 25-year amortization schedule. Typically associated with solid property fundamentals and stable cash flows. This bucket will get the sharpest pricing and lower fees. CM2 Loans If CM1 is the "A" bucket, CM2 loans are the "B" bucket. Encompassing a broad range of acceptable underwriting, DSCR coverage ranging from 0.95 - 1.49x. Given the wide range of acceptable DSCR, there are weak CM2 loans, strong CM2 loans, and a whole lot in between. Whether it's single or multi-tenant is also going to matter, as is the quality of the lease and tenant(s). CM2 loans are still considered high-quality but with slightly higher risk. Who can benefit? LifeCo loans are ideal for high-quality properties, including: • Multifamily • Industrial • Retail • Self-storages As a debt-equity capital markets firm, Eyzenberg & Company has a expertise and relationships with Life Companies that can assist in various phases of the development process. #CommercialRealEstate #Lending #RiskManagement

Practical advice on CMBS Special Servicer’s funding/advancing expenses (disclaimer – if you haven’t paid me for this, you likely shouldn’t rely on it) No, servicer's don’t have to fund expenses on defaulted loans. Well, at least they are not accountable to the Borrower for doing so. Shockingly enough, in many instances, they are not even required to do so under the trust documents, provided that they determine that not paying expenses will result in a greater recovery for the bondholders. A judge, depending on how well a Borrowers litigator might plead, may have an issue with the Servicer directing the Receiver not to pay past due or future operating expenses. But a Borrower who fights too hard for the payment of expenses is telegraphing eagerness and will end up losing exponentially more money in a deal than a decline in operations can cause to the asset (with few exceptions). Yes, working out CMBS loans can be infuriatingly counter-intuitive and a game of degrees. Practically, let’s explore two expense types: - Past due bills to vendors that can be replaced: Typically, the receiver will be instructed not to pay such amounts and the Borrower will be left with vendor headaches. - Vendors that cannot be replaced such as an electric bill or the like: These will almost always be paid, and the Lender will typically not risk having the lights turned off. (in rare instances, they don’t care) Happy to answer any questions. Stay tuned for the topic of lease approvals.

Unlocking DSCR Loans: A Simple Guide #dscrloans #rentalloans #rentalproperty #realestate #privatelender