Where commercial loans are all we do! - APEX Mortgage … · ˝Where commercial loans are all we...
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“Where commercial loans are all we do!”
Transcript of Where commercial loans are all we do! - APEX Mortgage … · ˝Where commercial loans are all we...
“Where commercial loans are all we do!”
Today’s Mission:
Increase your revenue by adding small-balance commercial mortgages to your current product line.
Your Market:
Business owners who need financing to pay off debt, expand their business or purchase commercial real estate, but are unable to qualify for SBA or bank financing.
Who is your typical borrower?
üSelf-employed borrowersüLess than perfect creditüStory loan borrowersüBank turn downsüHard money refiüTime is of the essenceüTax issuesüSomeone who would typically need a stated deal
Think about the goods and services you use!
• Did you get your morning coffee at a convenience store?
• Did you drop off your kids at daycare?• Where did you have lunch today?• Who repairs your car?• Did you go to a car wash?• Did you buy flowers or a gift for your spouse on
the way home?
The property types around you are endless!
Small Balance Commercial Mortgage Loans
• Loans under $500,000
• Most banks – minimum loan amount is $1,000,000. Smaller loans not considered profitable
Small Balance Commercial Mortgage Loans are Profitable
Mortgage broker makes 3. 5 points
3. 5% of $350,000
= $12,250
Eligible Property Type ExamplesMulti-Family
Day Care Facility
Auto Repair Shop Motel/Hotel
Churches - Traditional Churches – Non-Traditional
Warehouse/Light Industrial Office BuildingSelf Storage Facilities
Mobile Home Parks * Campgrounds Mixed Use
Eligible Property Type Examples
Essential questions to ask about potential commercial building financing
• When did you buy the building and what did you pay for it?
• Why do you want this loan and what are your plans for the building?
• Why have you had past credit problems?• For purchases – Where is the down payment
money coming from?
Financing SourcesFinancing SourcesHARD MONEY
• Commitment fees• 1 – 2 year balloon• Usually interest only• 55% maximum LTV• 5 – 10 Lender points• Broker fee tough to get due to the high lender fee• No YSP
Financing SourcesFinancing SourcesLOCAL BANKS
• Full document• Strict credit requirements• Limited property types• 5/25 programs• Balloons• 90 – 120 day close• Call and review options• Lower rate• No YSP
Financing SourcesINTERMEDIARY LENDERS
• Less stringent underwriting guidelines• Higher rates than banks• Long terms and full amortizations available• Less costly than hard money
How do I find these deals?
• Accountant• Lawyers• Bank loan officers – become the go-to product• Bank REO teams
• Review old 1003’s for self-employed borrowers over the past 5 years
• Talk to private lenders – they need a take-out option
• Leads from the internet
How do I find these deals?
TOP 5: What’s in it for you?
2. Serving an under-served market
3. Lots of pent-up demand
4. Not subject to regulation
5. Closings in 3 weeks
#1: What’s in it for you?
$$$$$
Recent Closing #1
• 6-family investment property in Lawrence
• Loan request $100K• Credit score 724• All cash out for
purchase of another investment property
• Borrower’s wife in Central America• Completed mail-away closing 19 days after
borrower accepted deal!• Broker made 3 points on HUD and 2 YSP!• Deal was APEXable™ because borrower showed
very little personal income and did not claim all rents on Schedule E
Recent Closing #1
Recent Closing #2
• Office space purchased as social club for $300K in 2011
• Club was downsizing and sold a much larger building
• Loan request of $120K to complete renovations
• Made commitment to borrower within 7 business days of application
• Broker made 3 points!• Deal was APEXable™ because Club had no
financials to provide for 2011 or 2012
Recent Closing #2
• Borrower needed to pull cash out to build 4th self storage building on property
• Deal was APEXable™ because property was owned by 3 brothers, personal income was weak and one brother had poor credit
• Deal closed 21 calendar days after commitment
Recent Closing #3
• Talk to commercial realtors• Walk up and down a commercial street with your
business cards• Chamber of Commerce• Let your whole network know that you can do
commercial
YOU CAN START TODAY!
APEX Mortgage Corp.• We don’t charge any upfront fees• We charge only ONE lender point at closing• Brokers can make up to 5 points• We close our loans in 2 to 4 weeks• We look at credit scores as low as 600• We need only a 1003 or PFS, tri-merged
credit report and summary to look at a deal
