Do You Want to Purchase Commercial Real Estate?

With the SBA 7(a) loan you can finance up to 90%, even sometimes 100% of the cost of the property depending on the final lender.  The amortization is up to 25 years.  The SBA 7(a) loan allows for a lower down payment and longer amortization, giving the borrower more flexible terms.  The SBA 7(a) loan does not have a balloon feature so you only have to get approved once and close your loan once.  The SBA 7(a) Loan caps out at $5,000,000.

With the SBA 504 loan, the borrower can finance up to 90% of the costs of the property.  The amortization is up to 30 years.  The 504 is a more complex loan product than the SBA 7(a) and comes with a more costly pre-payment penalty.   A lot of banks will use the SBA 504 loan product for deals up to $15,000,000 or even higher on a case by case basis.

The USDA B&I loan is a US government guaranteed loan product similar to the SBA products.  Two important differences are 1. The subject property must be located in an eligible USDA area.  2. The USDA B&I loan will finance non-owner occupied commercial investment property, while the SBA loan products will not.  Most banks will finance the USDA B&I loan up to $20,000,000 but some do less and others will go higher.

Nealy every bank in the US will lend money to purchase commercial real estate to a qualified borrower.  You can expect to be required to put in 25% of the cost into the transaction from your own cash.  Also, the amortization is normally limited to 20 years with a 5 year balloon.  Which means after 5 years you will have to be reapproved by the bank for the loan, pay closing costs again, and receive a new, and most likely different, interest rate.

Typically, a 12-to-24-month short term interest only loan.  Multifamily Bridge Loans are great when in the following scenarios.

• You need to close quickly
• You need to make an all-cash offer
• Lenders have already declined the deal
• The property has a high vacancy
• The property needs rehab
• A prior 1031 exchange fell apart
• No Income Verification Option

When you want to Purchase, Refinance, or Cash Out but the bank says "No".  It's time to use the FLS Funding Marketplace.      Our private debt investors will finance up to 80% LTV.  Choose between a 5-year ARM or 30-year fixed rate.  Minimum FICO Score of 650 required.  Perfect for:

• Owner Occupied Commercial Property
• Investment Commercial Property
• Multifamily properties under $20MM
• No Income Verification Option

The FLS Funding Marketplace provides access to CMBS loans (Commercial Mortgage Back Securities).  CMBS loans provide robust, long-term financing for owners and developers of multi-family, industrial, retail, self-storage, and hotel properties.  Ideal for transactions ranging from $20 million to $500 million, these loans offer fixed rate terms of 5, 7, 10, or 15 years with 25-30 year amortization options.  With a maximum LTV of 70% and highly competitive rates, the Large Balance CMBS loan allows borrowers to lock in low fixe payments for extended periods.  This program is ideal for high-value commercial properties.