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Friday, February 26, 2010

What We Are Funding Now!

We specialize in government loans (SBA 7a & 504, USDA, FHA/HUD for multi-family & assisted living facilities). We recently asked several of our most experienced commercial underwriters to get an updated briefing of current lending preferences.

SBA Financing
Preferred deals right now are acquisitions or refis of businesses that are the most resilient to these tough economic times and have only moderate decrease in revenues.

The riskiest industries that we have seen this past year are restaurants, hospitality, contractors and related businesses to the construction industry. Real Estate collateral now requested for most loans.  Direct industry experience, especially in the high risk deals, is a must.

What’s In a Good Construction Loan Package?

  • Executive Summary-overview of the project, location, strengths of the deal
  • Detailed Resume’s of partners AND GC if not a partner
  • Actual Projects completed-NEED EXPERIENCE
  • Pro-Forma-projections on project and net income expected
  • Detailed cost breakdown
  • Information on the property demographics, absorption studies, marketing and management plans, etc. The more detailed the information here, the better
  • Personal Financial Statements on all borrowers and GC
  • Info on pre-sales or pre-leasing and if so, proof of them. Minimum 50%+ pre-sales / pre-leasing is preferred
  • The key is money, experience, and pre-sales (or pre-leasing). NEED 2 of the 3 to have a shot. 3 of the 3 to be assured
Most of these deals fall down in the financials and the pre-sales. And upon digging, often lack of experience shows up as well. Minimum you need to even get a quote is the Executive Summary and the Pro-forma. The rest is needed to submit.


863-298-8900 or 813-833-3132

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