Commercial real estate funding is available from $ 10 million + (MINIMUM) in the United States, and from $ 20 million + (MINIMUM) for any other country.
Property or business must generate enough income to service the annual principal and interest payments. Debt service cover ratio must be at least 1.25.
This is for owners of commercial property who want to use their existing properties as collateral to borrow against other properties. No start up (pre revenue) companies can apply. You must have an independent appraiser provide an appraisal value for your existing property, which you own, which you will be using as collateral. Appraisals will be within the most recent thirty days. Financial statements (which show your net operating income) must be presented as part of the application process.
You must have at least $ 20,000 USD in cash (verifiable with a bank statement) to pay for all due diligence fees.
Debt Service Coverage Ratio (DSCR) is a ratio to measure a property's amount of available cash remaining after servicing the loan payments. In addition to LTV (loan to value), DSCR is the other loan constraint in any real estate transaction.
It is calculated as: DSCR = Net Operating Income/1.25 = maximum amount of funding that you can apply for including interest payments
For example if DSCR equals 50 million USD, divide that by 1.25 and the maximum amount of funding you can apply for is 40 million USD.
Net operating income = income after deducting for operating expenses but before deducting for income taxes and interest.
Please mention this EXACT blog post when applying (copy & paste the title of the blog post within your e-mail)
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