| Eligible
Properties: |
Acquisition,
Re-finance, and construction for
garden-style, and high-rise buildings
multifamily/condo properties are
acceptable. Phased properties
acceptable if phases can stand
on their own.
A, B, and C properties in primary
and secondary markets will be
considered.
Commercial space is limited
to 20% of the total net rentable
space. Properties with greater
than 20% student or military
tenancy will be considered though
typically require higher coverage
and reserves. The minimum acceptable
occupancy is the greater of
90% of sustaining occupancy.
|
| Eligible
Property Locations: |
Nationwide.
Market areas with a stable current
occupancy. Rent concessions will
be underwritten cautiously and
typically require higher coverage
and reserves. |
| Loan
Types: |
Acquisition,
Development, and Refinance |
| Debt
Service Coverage: |
Generally,
1.2 – 1.25x, depending on
the quality of the location and
market. |
| Amortization: |
Full
amortization over term or balloon
payments allowed |
| Interest
Rates: |
Conventional
rate is pegged to the 30 day LIBOR
or similar index, and can range
from 1.5% to 3% over LIBOR, fixed
for 5 or 10 years. |
| Fees: |
Reliant Capital Funding
Fees: We will price adjust
our fees according to level of
difficulty and other underwriting
considerations- typically 1-2%
of the loan amount- paid only
if a Commitment Letter is issued.
Third Party Fees:
The following fees can be included
in the financing. An appraisal
report can cost $5000. A Phase
1 environmental can cost $2000.
A survey, recording/filing fees
and title search is also the responsibility
of the borrower. |
| Other: |
Subject
property can be used as sole collateral.
Personally guarantee may be required.
|
| NOI
Calculation: |
Strongly
prefer to receive three full years
of operating history. Underwrite
rental revenues based on last
three monthly rent rolls and trailing
12-month history with adjustments
where appropriate. Generally underwrite
expenses based on last full fiscal
year, plus a 3% inflation factor
subject to industry averages.
Vacancy Factor: The
greater of 5%, local market
average or the actual property
for the most recent 12-month
period (including all forms
of economic rent loss).
Management Fee: The
greater of 5% effective gross
income, the actual management
contract fee rate, or industry
average.
Capital Reserves:
Generally ranging from $150
to $250 per unit, based on the
final engineering report, physical
inspection, tenancy and age
of property.
|
Are
you looking for apartment/multi-family
financing or refinancing? Our strong
influence with various banks around
the nation will help you get the loan
you need. Instead of approaching tons
of random banks that we don’t
have affiliations with (like some
other brokers like to boast), we package
your deal and approach the banks that
we’ve worked with in the past
on similar deals- the banks we know
can handle your loan in an efficient
and competitive manner, with fast
results.
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