We help raise debt and equity capital for real estate; Senior Mortgages, Mezzanine Loans, Equity Investments, and short-term bridge loans. We also help fund business loans and startup investments on select transactions. Lastly, we provide real estate restructuring and advisory services on to institutional clients and family offices.
If you can think of it, we have raised capital for it. From traditional investment real estate to energy, gaming, marinas, rail operations, and manufacturing, the CommercialRefi team has worked on a wide variety of asset types. As you know, some asset types are more challenging to raise capital for; assets with unresolved environmental contamination, clouded title, unclear use or unpredictable cashflow, and those situated in remote areas are examples. If you have a special purpose asset, reach out to our team for more info.
Our Small Balance program caters to investors and small business owners with business real estate seeking loans from $500K to $5M. Our large loan program is focused on helping professional investment firms and institutional clients purchase or refinance assets valued from $30M to $150M.
Both. While the majority of our work is focused on brokering capital, we operate a fund that loans capital for special situations e.g., restructurings, partner buyouts, bridge-to-perm, and acquisitions.
It is faster, more efficient, and cheaper than trying to find a lender and navigating the loan process on your own. An individual borrower will typically complete 1 commercial loan transaction every 5-7 years, and a real estate investment firm may complete 2-4 transactions a year. Compare that to successful brokers who may close 20-40 transactions…every month! Brokers have a better information on financing options, loan pricing, lending policies, and offer deep expertise to help you navigate the financing process, avoiding costly mistakes and delays. Do you know which lenders offer lower interest rates but have such draconian underwriting policies that most deals never close despite borrowers having spent thousands on appraisals and fees? We do!
Regional Banks, construction lending firms, CMBS syndicators, GSE lenders, private equity firms, hedge funds, family offices, and High Net Worth (HNW) individuals in the US and abroad.
No. We are strictly a commercial capital intermediary. We do however raise capital for SFR development projects for real estate developers.
We charge points (a percentage of the loan amount) as a fee. The fee varies depending on type of asset and difficulty of the assignment.
We do not. You should be wary of anyone charging large upfront fees, sometimes labeled as “Due Diligence Fees” or “Commitment Fees.” Almost all of these fees we have come across are varying degrees of scams.
We have offices in Dallas, TX, and Miami, FL, with remote team members in every time zone. Currently, we only operate in the United States.
The loan process begins with a consultation with one of our team members over a phone or video call. As a starting point, we take the time to understand the outcome you seek. We then collect the documents and data required to underwrite your loan request. After an initial underwrite, we match the loan request with the appropriate lender and inform you of the available options, along with our recommendation. The total time from collection of all information to providing you financing options is typically 7 days. Once you select an option, additional documentation is collected, and the loan is submitted to a capital source for due diligence, processing, and funding. The capital source may take from 25-45 days to complete their due diligence process and fund.
The loan applicant pays for an initial real estate appraisal. Depending on the size of a deal, an average MAI Certified appraisal ranges from $3,500 for a small commercial property to $12,000 for a large investment asset such as a 350-unit apartment building. Some lenders, depending on the state where the property is located, will settle for a cheaper ‘State Certified’ designated appraisal but most prefer an MAI Certified report. Potential borrowers should never order an appraisal, and let the lender order it. Virtually no lenders will accept a borrower ordered appraisal – it is specifically excluded as part of their risk management policy.
Lender fees are dependent on the loan program, the loan purpose, and asset type. For example, banks will typically charge 1 point (1% of the loan amount) on traditional investment real estate as a fee in addition to $1K-3K in processing fees. On a high-risk bridge loan, in addition to a high interest rate, expect to pay 1-2 points upfront and 1-3 points as an exit fee. Lastly, broker relationships and loan volume can allow brokers to negotiate lower fees with some lenders. There is a high degree of variability in lender fees. Once you select a specific loan program, a CommercialRefi team member will be able to share a full fee schedule with you.
For the Small Balance Loan Program ($500K-$5M), it is very important as the loans are recourse loans. If your credit is not great, your will pay a higher interest rate, unless the asset is an income generating asset and Net Operating Income (NOI) exceeds the annual debt service by a large margin. Be advised that most lenders will not allow a co-signor on the loan to lower the interest rate unless that co-signer is also put on the asset’s title. For the Large Loans for stabilized assets, loans are non-recourse to investment companies and investors, so personal credit of executive leadership is not considered.
Yes, Large Loans ($5M+) are typically non-resource. Small Balance Loans ($500K-$5M) are almost always recourse to borrowers.
We will begin with property level details and an understanding of the outcome you seek. Send us a ‘Get a Quote’ request by clicking HERE. Within 24 hours of receiving your request, we will reach out to schedule a 15-30 min call with a senior CommercialRefi team member.