1. Apartment Financing
Apartment financing can generally range up to 90% loan to value. It is generally the easiest to finance. Typical debt coverage requirements are 1.1-1.25. Naturally, the higher the leverage you use, the higher the interest rate will be.


2. Hotel/Motel Financing
Hotel or Motel Financing is the one of the more challenging real estate ventures to finance. Lenders typically want to lend between 65-70% loan to value. Some lenders are aggressive and will do up to 75%. We seek out these lenders. They know the numbers of the hotel business and are comfortable with it. The borrower always has the option to get additional support from an S.B.A. loan or seek mezzanine financing to get the down payment commitment down to as little as 15%. It is rare, but if you are a seasoned pro, your credibility can help you stretch your dollar.

3. Mixed Use
Mixed use projects are aesthetically appealing to the consumer and sound very lucrative to the investor, but lenders take a different approach. When having different income generators, the lender is concerned with how well the different business units operate. If the mixed use involves residential, the lender usually prefers the majority of the steady income derive from residential, the most reliable source. Borrowers can get 80% financing on these kinds of projects, but the debt coverage ratio required is usually 1.30 or higher.

4. Retail
Whether it’s the strip shopping center or a mall, desirability of the location plays a key role in how lender perceive your project. A well known company that draws people to the area is known as an anchor tenant. Being able to attract a few key anchor tenants helps fill in the rest of the retail shopping on your land. One caveat here though is that having an anchor tenant that takes up a significant portion of your rent (40% or more) can scare the lender. They wonder what you will do if that one anchor finds another location. Finding a good tenant balance allows your cash flow projections to flow in the black when you receive 80% financing.

5. Office and Industrial
With the abundant supply of office and industrial, a vacancy factor of atleast 20% should go in your projections. Once again, location is key and you do not want one company to monopolize the entire building unless of course you have them committed to a long term lease. 80% financing is normal for these types of real estate, but can go higher if your location is in a heavily impacted area. An office complex near Fisherman’s Wharf in San Francisco can probably expect lower vacancies.

6. Healthcare
Many healthcare patients have their large medical costs subsidized by the government. The healthcare industry can always rely on Uncle Sam to pay timely and lenders know this. Financing on these projects are really dependant on how well the borrower knows their craft. With the countless regulations that a healthcare facility must follow, a borrower must accurately project operation costs to give a fair representation of how the project will cash flow out.

7. Special Use
Self Storage, automotive, and any other light industrial are more difficult to finance because they are not the traditional model most lenders go by, but a strong loan proposal can win over a lender if they can understand your strengths and weaknesses clearly. We are always excited to take on the challenge with you. Special Use projects serve a valuable purpose in the real estate landscape and we are happy to help you contribute to it. We will work diligently get your deal done.