Overviewducts

Facts on Commercial Lending. To arrange and structure a commercial real estate debt is a complicated procedure especially in the commercial lending area. Traditional Lenders offer high LTV's and comparative rate, but require: • Full documentation (personal taxes and financials) • Large down payment usually 25 to 30% • Strong credit and experience. • Seller carrying a 2nd T.D. are not allowed. • Most loan programs are balloon payments due in 5,7,10 yrs. • Most transactions take from 90 to 120 days to close. • Property requires strong D.S.C.R's . • Environmental studies may be needed (Phase I & II) • Also be prepared for up front fees and others... Hard Money Lenders: • Will finance your property fast • Providing that you pay interest rates between 14 to 16%. • Points from 7 to 10%. • Low LTV's and very short terms typically 1 to 2 years.