Services
Loan
types available
Other services
Fees
Property Types
Financed
 | Garden and hi-rise
apartments. ( maintenance, not age, most important )
|
| Office buildings, all types:
single or multiple tenant.
|
| Well anchored, shopping
centers with "credits" with 10 years or more (remaining) on anchor's basic lease
terms as of date of loan closing.
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| Unanchored Shopping Centers
in certain situations.
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| Flex style light
industrial/office buildings.
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| Single and multi-tenant
light industrial buildings.
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| High grade mobile home
parks.
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| Proprietary nursing homes.
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| Major franchise hotels.
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| Medical buildings.
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| Owner occupied buildings.
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Loan Types Available
A.
Permanent Mortgages (Bridge or Long Term):
Basically two types of
fixed rate permanent financing are currently available:
1.
|
Immediate
funding
- most prevalent today. Virtually no real estate or market rate risk, can see it, touch
it, feel it. Property is substantially completed, substantially leased. Loan to close
within 6 months. Refinancing, renovations, acquisitions, joint ventures and similar fall
into this category.
|
2.
|
Future take outs -
Available for "To be built or major renovation situation". Typically must close
within 12 months of commitment (sometimes 15 - 18 months). Difficult, as there are many
additional risks for lenders, including interest rate movement, makes lenders use the
crystal ball approach, therefore a slightly higher rate. Property must be substantially
pre-leased to good concern(s). Commitments are "bankable" with construction
lenders. Tri-Party agreements available. |
B.
Construction loans:
Basically
three types of
fixed rate or floating rate construction financing are currently available:
1.
|
With a permanent
"take out" commitment, construction lender has only risk of completion and/or
bankruptcy of borrower or tenant until completion.
|
2.
|
Without a permanent take out
commitment, lender takes all risks including lease up. Some "spec" loans
available. Most require strong personal or corporate guarantees. "Mini-perm"
sometimes available. |
3.
|
Combination
Construction - Permanent - combines a 12-18 month construction
loan with an optional 5 or 10-year (or longer term) permanent "roll
over" upon completion and occupancy. Many are "fixed rate" from inspetion. |
C.
Interim loans:
Basically
three types of
fixed rate or floating rate construction financing are currently available:
D.
Joint
Venture/Equity Financing:
1.
|
Projects:
A. For new construction (to be built)
B.
For acquisition with enhanced value contemplated
to be created by immediate improvements and/or rent increases.
C.
For renovation with enhanced value contemplated to be
created by immediate improvements and/or rent increases.
|
2.
|
Basic
Structure Outline:
A.
Participation Mortgage:
-
Up to 90% of appraised value.
- Up to
100% of real total cost.
-
Borrower must be "stand alone" entity.
- Basic
mortgage provided at market rates.
-
Participation is 50% of net cash flow, 50% of gain on sale and 50% of
net refinancing proceeds, if applicable.
|
B. Equity Financing:
-
Supplements the Borrower's existing or to be secured, fixed or
floating rate first mortgage (construction, mini-perm or even 10-year loan)
-
Borrower must be a "stand alone" limited liability corporation (LLC).
-
Joint
Venture/Equity partner will effectively own 40%,
50% or 60% of stock of LLC as negotiated on a case by case basis, but
Borrower makes controlling decisions.
-
Joint
Venture/Equity partner requires an 8% to 10%
annual, preferred and cumulative return on its invested
capital.
-
Joint
Venture/Equity partner will own 40%,
50% or 60% of residual annual cash flow and gain on sale or refinance.
Note:
A supplement type deal is typically designed for 5 years
unwind. A new 1st mortgage deal designed for 10 years and beyond.
|
| Comment:
The foregoing are designed as quick outlines. For more detailed
information, please contact us.
|
Other Services
Pro-Gressive Mortgage
also performs appraisals and feasibility reports.
Pro-Gressive acts as consultants to assist clients with acquisitions,
new developments, loan renegotiations or troubled loan "workouts".
Pro-Gresssive can also
provide Expert Witness Testimony.
Pro-Gressive will also teach or provide income property mortgage loan
underwriting seminars for lending institutions or special loan departments.
Broker Co-operation invited.
Fees
| Loan Placement: |
Negotiable, but typically 1% on a
performance basis |
| Consultation: |
$295/hr. + expenses |
| Court
Deposition/Testimony: |
$395/hr. |
| Appraisals: |
Negotiable but minimum
$5,000 |
| Seminars: |
As Applicable |
|
