capital loan program
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Capital Loan Program. Acadia Mortgage Solutions Inc. What is the Capital Loan Program?. Financing through Acadia Mortgage Solutions from an institutional lender Specialized in small commercial & income producing properties - PowerPoint PPT PresentationTRANSCRIPT
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Capital Loan ProgramCapital Loan Program
Acadia Mortgage Solutions Inc.
Acadia Mortgage Solutions Inc.2
What is the Capital Loan Program?
Financing through Acadia Mortgage Solutions from an institutional lender
Specialized in small commercial & income producing properties
Programs designed to meet the needs of small business owners & investors
Equity-based lending (with a credit component)
Loans always secured by the commercial real estate
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Traditional Money Sources
Banks & Credit Unions
Trust Companies
Mortgage Bankers
Investment Bankers
Private Funding
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Capital Loan Program’s Place?
CAPITALCAPITALLOANLOAN
PROGRAMPROGRAMTraditional Lenders Private Funding
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High Application / Commitment Fees
Reasonable fees!High Application / Commitment Fees
Availability/stability inconsistent & variable based on many market factors
YOU ARE THE FOCUS! This program is a stable solution that specializes in
small commercial mortgages (programs are designed specifically for small business owners,
investors and business-for-self clients)
Availability / stability dependent & variable based on lender’s
philosophy and business goals
Reasonable DSCR (1.20 as a benchmark)
Strong DSCR (1.40 or more)
No Cross-Collateralization requiredCross- Collateralization Underwriting requirements variable by investor
Flexible Underwriting Guidelines (Common Sense Approach)
Loan Committee Underwriting
Short Term Loans / Temporary Solution
Mid-Term and Long-Term Solution (absolute min. 2 yrs)
1 to 5 year terms
All Property TypesMany Property TypesMarketable Properties
Environmental VariesEasy Environmental ProcessEnvironmental Phase I & II
Minimal DocumentationLimited Documentation (Stated Program)
Full Documentation
All Credit ConsideredWide Credit RangeStrong Credit
Fast ClosingsQuick ClosingsLong Closings
Case-by-case LTVsHigh LTVsConservative LTVs
Higher RatesIntermediate RatesBest Rates
Private MoneyThe InterBay LoanTraditional Lenders
Small Commercial Lending Arena
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Traditional Lender Requirements Full document programs often require the following documents as a
minimum, sometimes just for a pre-approval…
Bank Credit ApplicationBackground Information SheetState of Personal HistoryManagement RésuméPersonal Financial StatementT4, T1, Notice of AssessmentFinancial Information: Business, Personal, & Affiliate Tax ReturnsCopy of Purchase Agreement
Lease AgreementCopy of Business LicenseEquipment ListingSchedule of Business DebtEnvironmental Phase 1 & 2Insurance InformationOperating StatementsRent Roll
…and more…
The Capital Loan Program is a low-document program designed to consider the special needs of
small business owners and business-for-self clients!
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Who Needs the Capital Loan?
Clients under-served by traditional lenders due to: Inability / Unwillingness to provide business and personal
documentation
Fast service required
Too much credit exposure to the bank
Loan requested is under bank’s minimum loan amount
Requirement of significant cash out (Equity Take-Out)
Higher LTV needed
Secondary financing needed behind bank’s loan offer
Changes in bank lending philosophy
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Who needs the Capital Loan?
As an alternative to private financing solutions due to: Need for higher LTV
Need / desire for Lower Fees
Need / desire for lower interest rate
Need / desire for longer term
Ability show improved credit situation
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Loan AmountsLoan Amounts
$100,000 - $1,200,000$100,000 - $1,200,000
Multi-Family (5+ Units)
Office
Retail
Automotive
Rooming House
Hotels / Motels
Mixed Use
Light Industrial /Warehouse
Self Storage
Carwash
Bed & Breakfast
Funeral Homes
Restaurants
Daycares
Resorts
Campgrounds
Mobile Home Parks
Property Types
The Capital Loan Program
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Non-Eligible Properties
Traditional Churches (no alternative use)
Raw Land and Farms
Construction / Interim Financing
Business Loans
Health Care Facilities that dispense medications(hospitals, nursing homes)
Gas Stations
Adult Entertainment Facilities
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Mixed Use - $145,000 A+ Credit Borrower LTV 80% Owner Occupied BDM visited broker and
helped with marketing First commercial property for this client Closed in 38 days
Deal View # 1. . .
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Automotive - $435,000 Owner occupied Bank not willing to
consider due to possible environmental concerns with this type of property
Local bank branch referred the client to the mortgage broker
Deal View # 2. . .
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Office / Retail - $606,750 Significant cash-out Client did not have
financials required at bank Owner received
advertisement from broker Deal closed in 31 days
Deal View # 3. . .
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Retail / Office - $920,000 Borrower’s credit 685 LTV 75% Investment property Expedited service from Lawyers Closed in 45 days
Deal View # 4. . .
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Hotel / Motel - $1,000,000 Refinance – cash out to purchase another
property Client was referred to broker by their real
estate agent Credit improved from A- to A in process Appraisal came in higher than anticipated (+195k) Deal closed in 59 days
Deal View # 5. . .
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