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Best Mortgage Available.com has access to all the best rates and programs from all the top lenders.
Unlike your local bank we can offer you several Commercial Loan options such as a Stated
Income/Stated Asset or No Documentation Loan Program.
That means that there is no income or asset verification which translates into greater flexibility with regards to
underwriting and a faster closing time.
-Loan amounts as low as $250,000
-Combined Loan To Value up to 90%
-No tax returns
-No income verification loans are available depending on the loan amount
-Unrestricted cash-out
-We can accommodate a mortgage for a wide range of Commercial Properties
-Several affordable payment options
-Fixed or adjustable rates
-10 to 30-year amortization

SBA Loans - Government loan programs offer small businesses financing options
Equipment Financing- This type of loan can incorporate training, supplies, installation and any other equipment
costs. In some cases no financial statements or tax returns will be required.
Lines Of Credit - Accommodate seasonal fluctuations or cover your current operating costs with a commercial
line of credit. With this type of loan you don't have to borrow more then you need and you can always pay down
the balance at anytime.
Bridge Loans - Are short term loans that "bridges" the gap between today's immediate need for cash, the
companies need to pay bills or to supply them with the means to get to the closing of an alternative long term
financing package or a pending investment deal.
Mezzanine Financing - Typically used to finance the expansion of existing companies. This type of loan may be
easier to obtain then a conventional commercial loan and it can be provided very quickly with little or no collateral
on part of the borrower. The company looking for this type of loan must have a proven track record in the
industry, have an established product and good reputation. A profitable bottom line and a viable plan for
expansion must also be presented. With this type of loan lenders will look to make back a high return on their
investment.
Hard money Loans - These types of loans are not for everyone. For those individuals that have no other options
available to them and for those who normally wouldn't qualify for a conventional commercial loan this may be the
only viable option to meet their current needs.

(Cross-Collateralization available on some loans)
Apartment or multi-family residential (defined as 5 or more residential units)
Hi Rise or Mid Rise Apartments
Garden Apartments
Automotive Services
Strip shopping centers
Professional office space
Storefront properties
Warehouse/industrial buildings
Storage Facilities
Church
Gas Station
Health Care
Day Care
Restaurants
Multi-family
Mixed-use - i.e., one or more residential units with one or more commercial units
Hotels/motels - with strong operating income
Industrial
Retail buildings
Ranches Farms
Land acquisition, development & multi-lot sell-out (improved/developed lots)
Mobile Home Park
Other commercial properties may be acceptable. All you need to do is ask.

Although every loan application is unique and evaluated on its own merits every Commercial Lender
will review then consider your application based upon the following criteria.

1. Your Capability to repay the loan will be the most critical of factors. The prospective lender will want to know
exactly how you intend to make good on the loan. Your new lender will also consider the amount of positive cash
flow from the business, the mortgage term and the chances of successful repayment of the loan. The underwriter
will consider the amount education, any experience you may hold in the field of your particular venture and
payment history on existing credit relationships as an indicator of future payment performance. They will also take
into account any monies that you may hold in reserve and your down payment. Prospective lenders also will want
to know about your contingent sources of repayment.

2. Lenders will also look at the amount of Capital / Money you personally have invested in the business as an
indication of how much you will lose if the business should fail. Prospective lenders will expect you to invest your
own assets so you will undertake personal financial risk to establish the business. All lenders feel that if you have
significant personal investment in the business you are more likely to do what ever it takes so that you business
succeeds.

3. Collateral or Personal Guarantors are additional forms of security that you can provide to the lender. The
bank will want to know that there is an alternative source of repayment If the business can't repay the loan.
Personal and business assets can be a form of collateral for the loan. A Personal Guarantor is someone who will
signs a document stating he or she will repay the loan if you can't. After an underwriter reviews your application
they may require a Personal Guarantor in addition to collateral as security for a loan.

4. The underwriter will focus on the intended purpose of the loan. They will need to know what the money
will be used for such as working capital, equipment, or possible inventory? The lender will also consider the local
economic climate and conditions within your industry and in other industries that could affect your business.

5. Property Analysis
A bank approved appraiser will establish Fair Market Value and Fair Market Rent for the subject property. Special
use property's may require additional consideration with regards to underwriting. The age, condition of the
property, the local market, the location and accessibility to the subject property are some other factors that will be
considered.

6. Loan to Value
Unlike residential lending most lenders will require a minimum of 20% (sometimes 25%) down payment. The
remaining 75-80% can be in the form of a mortgage provided by a bank or mortgage company. Depending on your
commercial mortgage application your potential lender may require a larger down payment of 25%. Commercial
investment properties are viewed more conservatively.

R equired Documentation
(income documents are not necessary if your are applying for a stated income/stated asset loan)

The most important ratio to understand when applying for a commercial loan is the Debt Service Coverage
Ratio or (DSCR).To calculate the Debt Service Coverage Ratio take the Net Operating Income (NOI) and
then divide it by the Total Debt Service.

1. The Net Operating Income is the income from a rental property left over after paying all of the operating
expenses:

Total Annual Scheduled Gross Rent = $150,000
Less 5% Vacancy & Collection Loss = $7,500
____________________________________
Effective Gross Income: $142,500
Less Operating Expenses
Utilities
Insurance
Real Estate Taxes
Repairs & Maintenance
Management
Reserves for Replacement Items
Total Operating Expenses: $60,000

Net Operating Income (NOI) $72,500

Lenders will always insist on a vacancy factor to be part of the calculations regardless of what the actual
vacancy rate is. Also lenders will use a management factor of about 5% of effective gross income. The reason
for this is that they feel they would have to pay this fee if they had to take back the property. LOAN PAYMENTS
ARE NOT INCLUDED AS AN OPERATING EXPENSE.

2. Total Debt Service. This includes the principal and interest payments of all loans on the property, not just
the first mortgage. NOTE THAT WE HAVE NOT INCLUDED TAXES AND INSURANCE. They were already
accounted for above when we arrived at net operating income (NOI).

To correctly calculate the (DSCR) or the debt service coverage ratio, you must take the net operating income
(NOI) and then divide by the mortgage payment(s).
We will assume for this example that there is only one mortgage on the property:

$500,000 First Mortgage
8% Interest, 25 years amortized. Principal and Interest payment $3859.08 per month x 12= $46,309.06
Annual Payment (Debt Service) = $46,309.06

Then:

Take the Net Operating Income (NOI) = $72,500 divide it by the Total Debt Service
Total Debt Service $46,309.06
DSCR = 1.56%

Obviously the higher the DSCR, the more net operating income is available and every lender wants to see
highest DSCR as possible.

The larger the loan, the higher the debt service (mortgage payments). If the net operating income stays the
same, and the loan size and therefore the debt service increases, then the lower the DSCR will be.

A DSCR of 1.0 is called a break even because the net operating income (NOI) is just enough to cover the
mortgage payments (debt service).

A cash flow or DSCR of less than 1.0% will be considered a negative income situation. This would mean that the
borrower would have to contribute cash out of his or her personal budget every month just to keep the project
afloat.
A negative cash flow situation will not be looked upon favorably.

Commercial Loans - Hard Money Commercial Loans

We Can Also Offer:

Commercial Lenders in our network have over $68 Billion in assets. Loans from $50k up to $300
million. These are just some types of commercial properties that we can provide loans for:

What Lenders Look For When Applying For A Commercial Loan -

If you know nothing about Commercial loans you need to know this.

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