smart. Study this term sheet carefully. Blackburne & Brown
is a totally unique commercial lender who will save your bacon again
private money. Think fast, easy paperwork. Think common
sense underwriting and twenty-four hour approvals. And there
are no up-front fees, other than customary third party reports (and
really cheap third party report fees at that!).
forget about high points. Forget about short term loans. Forget
about prepayment penalties and lock-outs. We
offer a 15 year loan with no prepayment penalty for only 2.5 points.
Wow! If you are an industry veteran, you can really appreciate
a loan fee of only 2.5 points for a fast, private money loan, especially
one with a 15 year term. (We can offer 15 year loans for only
2.5 points because we charge our private investors a very profitable
1.9% loan servicing fee.) We even have a six month bridge
loan program for only 1 point.
assume your client won't pay our admittedly higher interest rates. Our
points are super low, our loans have no prepayment penalty, and
sometimes wealthy folks simply need the cash. In fact, many of our
clients are extraordinarily wealthy. They prefer speed and convenience
over paperwork hassles and endless bank delays.
recommend that you submit a duplicate loan package, and let us issue
a loan approval letter. Show it to your client. Let
him use it to pressure an existing lender. Let your client
know that the money is readily available if he truly needs it right
Bridge loans (first mortgage position only)
no second mortgages or construction loans.
Minimum loan: $150,000
(maybe lower on a case-by-case basis)
Maximum loan: $2,000,000 (maybe up to $2.5 million on a case-by-case
every type of rental property, except one-to-four family dwellings.
Therefore we will lend on multi-family properties, office, retail,
industrial, warehouse, mixed use, single family homes converted to
commercial, self-storage, mobile home parks, trailer parks, motels,
hotels, single room occupancy (SRO) properties, residential care
homes, congregate care, skilled nursing facilities, convascent hositals,
restaurants, bars, nudie bars, auto repair, gas stations (only if
new double-walled tanks and the required monitoring equipment has
already been installed - we will not finance their installation),
churches and even land.
most preferred properties are residential care homes (old folks homes)
and nudie bars.
RATE AND TERMS
to 12.9% fixed for the first 5 years. Adjustable thereafter
for the remaining 10 years.
- One year constant Maturity Treasuries (2.94% as of 10/6/03).
Margin - 8.31% to 10.31%
Higher start rate is for less attractive properties
1.5 - 3.5 points
+ $950 (2.5 points is typical)
charge only 2.5 points + $950 on most of our loans
We would go as low as 1.5 points for a gorgeous property less than 10 years
We will probably charge 3.5 points if the property is older than 25 years
old or ugly.
No prepayment penalty
Legal fees in California: $600 Outside of California: $2,000 to $3,000
Third Party Reports
General Certified Appraisal: $1,900 to $2,800
Toxic Report: $1,075- $2,500
RATES AND TERMS
Note - We Make Six Month Bridge Loans For Only One Point!
- 13.9% fixed
1 point + $950
No prepayment penalty
SERVICE COVERAGE RATIO
Who Cares? We're Mainly an Equity Lender!
coverage ratios of less than 1.0 are regularly permitted if the
borrower can clearly handle the negative cash flow.
We Allow Lots of Junior Financing. Maybe Even 100% of the Purchase Price!
Cut Our LTV's By 7% (Example: from 65% to 58%) If the Seller Carries Balance
of Purchase Price (Zero Down)
LTV on rental-type commercial properties (maybe 70% if less than
10 years old)
Buildings (5+ units) We do not finance 1-4 family dwellings
Strip Centers and Shopping Centers
Industrial Buildings and Warehouses
Auto Repair Buildings
Mobile Home Parks and Trailer Parks
Mini-Warehouse (Self Storage)
Mixed Use Properties
LTV on business-type properties
and Bars (unless the building is basically just a box - then maybe
Residential Care Homes, Nursing Homes and Convalescent Hospitals
Gas Stations, Churches, Nudie Bars, etc.
No land development
or construction loans
We lend on the value of the land right now in its raw, undeveloped state.
Of course you can use the proceeds for anything you want (gambling, land development
40% maximum LTV on land ready economically to be developed right now (surrounded
maximum LTV ratio on land in the path of growth but not surrounded
10%-25% maximum LTV on remote land (remote land loans require the personal
guaranty of a strong borrower)
Land loan rates: 14.9% - 15.9% fixed, 3.5 points + $950, 3 years (maybe
5 years), interest-only.
for a Commercial Loan
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