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Capital Loan Program. Acadia Mortgage Solutions Inc. What is the Capital Loan Program?. Financing through Acadia Mortgage Solutions from an institutional lender Specialized in small commercial & income producing properties
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Capital Loan Program Acadia Mortgage Solutions Inc.
What is the Capital Loan Program? • Financing through Acadia Mortgage Solutions from an institutional lender • Specialized in small commercial & income producing properties • Programs designed to meet the needs of small business owners & investors • Equity-based lending (with a credit component) • Loans always secured by the commercial real estate Acadia Mortgage Solutions Inc.
Traditional Money Sources • Banks & Credit Unions • Trust Companies • Mortgage Bankers • Investment Bankers • Private Funding Acadia Mortgage Solutions Inc.
Capital Loan Program’s Place? CAPITAL LOAN PROGRAM TraditionalLenders Private Funding Acadia Mortgage Solutions Inc.
Traditional Lenders The InterBay Loan Private Money Best Rates Intermediate Rates Higher Rates Conservative LTVs High LTVs Case-by-case LTVs Long Closings Quick Closings Fast Closings Strong Credit Wide Credit Range All Credit Considered Full Documentation Limited Documentation (Stated Program) Minimal Documentation Environmental Phase I & II Easy Environmental Process Environmental Varies Marketable Properties Many Property Types All Property Types 1 to 5 year terms Mid-Term and Long-Term Solution (absolute min. 2 yrs) Short Term Loans / Temporary Solution Loan Committee Underwriting Flexible Underwriting Guidelines (Common Sense Approach) Underwriting requirements variable by investor Cross- Collateralization No Cross-Collateralization required Strong DSCR (1.40 or more) Reasonable DSCR (1.20 as a benchmark) Availability / stability dependent & variable based on lender’s philosophy and business goals YOU ARE THE FOCUS! This program is a stable solution that specializes in small commercial mortgages (programs are designed specifically for small business owners, investors and business-for-self clients) Availability/stability inconsistent & variable based on many market factors High Application / Commitment Fees Reasonable fees! High Application / Commitment Fees Small Commercial Lending Arena Acadia Mortgage Solutions Inc.
Lease Agreement • Copy of Business License • Equipment Listing • Schedule of Business Debt • Environmental Phase 1 & 2 • Insurance Information • Operating Statements • Rent Roll • …and more… • Bank Credit Application • Background Information Sheet • State of Personal History • Management Résumé • Personal Financial Statement • T4, T1, Notice of Assessment • Financial Information: Business, Personal, & Affiliate Tax Returns • Copy of Purchase Agreement Traditional Lender Requirements • Full document programs often require the following documents as a minimum, sometimes just for a pre-approval… The Capital Loan Program is a low-document program designed to consider the special needs of small business owners and business-for-self clients! Acadia Mortgage Solutions Inc.
Who Needs the Capital Loan? Clients under-served by traditional lenders due to: • Inability / Unwillingness to provide business and personal documentation • Fast service required • Too much credit exposure to the bank • Loan requested is under bank’s minimum loan amount • Requirement of significant cash out (Equity Take-Out) • Higher LTV needed • Secondary financing needed behind bank’s loan offer • Changes in bank lending philosophy Acadia Mortgage Solutions Inc.
Who needs the Capital Loan? As an alternative to private financing solutions due to: • Need for higher LTV • Need / desire for Lower Fees • Need / desire for lower interest rate • Need / desire for longer term • Ability show improved credit situation Acadia Mortgage Solutions Inc.
Property Types • Self Storage • Carwash • Bed & Breakfast • Funeral Homes • Restaurants • Daycares • Resorts • Campgrounds • Mobile Home Parks • Multi-Family (5+ Units) • Office • Retail • Automotive • Rooming House • Hotels / Motels • Mixed Use • Light Industrial / Warehouse The Capital Loan Program Loan Amounts $100,000 - $1,200,000 Acadia Mortgage Solutions Inc.
Non-Eligible Properties • Traditional Churches (no alternative use) • Raw Land and Farms • Construction / Interim Financing • Business Loans • Health Care Facilities that dispense medications (hospitals, nursing homes) • Gas Stations • Adult Entertainment Facilities Acadia Mortgage Solutions Inc.
Deal View # 1. . . • Mixed Use - $145,000 • A+ Credit Borrower • LTV 80% • Owner Occupied • BDM visited broker and helped with marketing • First commercial property for this client • Closed in 38 days Acadia Mortgage Solutions Inc.
Deal View # 2. . . • Automotive - $435,000 • Owner occupied • Bank not willing to consider due to possible environmental concerns with this type of property • Local bank branch referred the client to the mortgage broker Acadia Mortgage Solutions Inc.
Deal View # 3. . . • Office / Retail - $606,750 • Significant cash-out • Client did not have financials required at bank • Owner received advertisement from broker • Deal closed in 31 days Acadia Mortgage Solutions Inc.
Deal View # 4. . . • Retail / Office - $920,000 • Borrower’s credit 685 • LTV 75% • Investment property • Expedited service from Lawyers • Closed in 45 days Acadia Mortgage Solutions Inc.
Deal View # 5. . . • Hotel / Motel - $1,000,000 • Refinance – cash out to purchase another property • Client was referred to broker by their real estate agent • Credit improved from A- to A in process • Appraisal came in higher than anticipated (+195k) • Deal closed in 59 days Acadia Mortgage Solutions Inc.
