Commercial Real
Estate Loans, Lending & Investing...
Whether it is development or acquisition related,
commercial real estate
loans have their own place in the capital funding matrix 
and strategy you need
to employ for successful project outcomes. All things being equal,
construction phase commercial real estate loans represent the hardest placement
within the commercial real estate financing lexicon. The reason a
development loan is the most difficult financing to obtain because there is no
existing income-producing asset for lenders to underwrite. This means the
entirety of the owner's program must be qualified, quantified, and given due
consideration prior to the issuance of any kind of financing commitment - and
this is where we can help you the most.
Most commercial real estate
loans require excessive levels of collateralization. Collateral is
the name of the game in commercial banking circles and you need to be
aware of the fact the collateral has to exceed the loan amount and we're
not talking small numbers. There are are plenty of commercial real
estate loans being routinely underwritten with collateralizations equal
to greater than 250% of the loan basis, so be prepared to watch your
assets become tied up by the lender. It's the nature of the beast
and you should plan on nothing less than 150% and be prepared (in
certain circumstances) to go as far as 350%. This is a tough
hurdle to make happen, but if there is no collateral pool then the next step
should be a fractional real estate syndication to increase the equity
capitalization to a point where the lender can be induced to make the loan.
These
loans represent the "old-school" method that was prevalent in the
"old economy". Today, we use a multi-layered funding approach to
deliver non-recourse construction financing for new projects throughout North
America. Find out if your project qualifies. Talk to a Rainmaker
today and get some alternatives that work for you and not just work for the
lender.
