Where commercial loans are all we do! Todays Mission: To establish a - PowerPoint PPT Presentation

“Where commercial loans are all we do!”

Today’s Mission: To establish a long-term profitable relationship and provide you with the knowledge needed to originate and qualify potential commercial deals that will CLOSE and put DOLLARS in your pocket!

Who is APEX Mortgage? • Subsidiary of Firstrust Bank • Small Balance Commercial Lender • Friend of Brokers for 25 years

APEX Mortgage – above the rest • We don’t charge any upfront fees • We close our loans in 2 to 4 weeks • We handle all processing • We portfolio and service all loans

APEX Basics

Loan Sizes Minimum: $25,000 Maximum: $500,000

Where does APEX lend? Nationwide in 42 states excluding: Alabama / Alaska / Hawaii Michigan / Nevada / North Dakota / Vermont / West Virginia

Programs • Core program: 25-year fixed rates begin at 8.5% • Interest Only product available • Flexible ARM’s available if necessary

Soft Approach to Hard Money Eligible Scenarios • Bridge to Sale • Rehab • Credit <600 • Non-seasoned properties

Soft Approach to Hard Money • Interest only • 1-5 year balloons • Rates higher than core programs

Core Program - Loan to Value • 70% maximum • Cross collateral options available to increase loan amount. • Seller Seconds available to 80% CLTV

Core Program - Credit Requirements • Core programs for credit scores above 600 • Programs available for all credit grades

Getting Started

Getting Started What do you do with a potential deal? • Complete a 1003 application • Get credit report • Call APEX

Essential questions to ask about potential commercial building financing • When did you buy the building and what did you pay for it? • Why do you want this loan and what are your plans for the building? • Why have you had past credit problems? • For purchases – Where is the down payment money coming from?

Submission Requirements 1. Completed 1003 or Personal Financial Statement 2. Current Tri-merge credit report 3. Brief description of why borrower wants the loan

Qualifying a Potential Deal All deals are approved according to the same criteria  Character  Credit  Capacity  Collateral

Income Requirements Investment Properties must cover the debt @ 1.25% DSCR

The APEX Process

The APEX Process • Underwriter review • You get offer • You sell the deal • Call APEX and let us know how much you are charging and borrower contact information

The APEX Process • APEX interviews the borrower • APEX issues Commitment Letter • APEX schedules appraisal, clears title, collects stips • APEX schedules closing

The APEX Process – Your Role • Continue finding more business while APEX does all the work • Collect Check

APEX Borrowers

Your Market: All commercial property owners who cannot be served by local banks

The Typical APEX Borrower  Self-employed borrowers  Less than perfect credit  Story loan borrowers  Bank turn downs  Hard money refi  Time is of the essence  Tax issues  Someone who would typically need a stated deal

Who is your typical borrower? Eligible Property Type Examples Multi-Family

Who is your typical borrower? Eligible Property Type Examples Day Care Facility

Who is your typical borrower? Eligible Property Type Examples Auto Repair Shop

Who is your typical borrower? Eligible Property Type Examples Mixed Use

Who is your typical borrower? Eligible Property Type Examples Motel/Hotel

Who is your typical borrower? Eligible Property Type Examples Bed & Breakfast

Who is your typical borrower? Eligible Property Type Examples Funeral Home

Who is your typical borrower? Eligible Property Type Examples Warehouse/Light Industrial

Who is your typical borrower? Eligible Property Type Examples Office Building

Who is your typical borrower? Eligible Property Type Examples Self Storage Facilities

Who is your typical borrower? Eligible Property Type Examples Mobile Home Parks * Campgrounds

Who is your typical borrower? Eligible Property Type Examples Retail * Strip Malls

Who is your typical borrower? Eligible Property Type Examples Churches - Traditional

Who is your typical borrower? Eligible Property Type Examples Churches – Non-Traditional

Collateral Requirements Ineligible Property Types: • Gas Stations • Assisted Living • Dry Cleaners • Raw land • Properties with environmental concerns

APEX Compared to Other Money Sources

Financing Sources Hard Money • Commitment fees • 1 – 2 year balloon • Usually interest only • 55% maximum LTV • 5 – 10 Lender points • Broker fee tough to get due to the high lender fee • No YSP

Financing Sources Local Banks • Full document • Strict credit requirements • Limited property types • 5/25 programs • Balloons

Financing Sources Local Banks (cont’d) • 90 – 120 day close • Call and review options • Lower rate • No YSP

Financing Sources Intermediary Lenders • Less stringent underwriting guidelines • Higher rates than banks • Long terms and full amortizations available • Less costly than hard money

Finding Deals

How Do I Find These Deals? • Accountant • Lawyers • Bank loan officers – become the go-to product • Bank REO teams

How Do I Find These Deals? • Review old 1003’s for self -employed borrowers over the past 5 years • Talk to private lenders – they need a take-out option • Add commercial tag-line to everything you have • Marketing • Social media • Phone message • Business Card

TOP 5: What’s in it for you? 2. Serving an under-served market 3. Lots of pent-up demand 4. Not subject to regulation 5. Closings in 3 weeks

#1 : What’s in it for you? $$$$$

#1 : What’s in it for you? $$$$$ • 2 points YSP available on most deals • Broker protected up to 5 total points

APEX’s Recent Georgia Closings

Who is your typical borrower? Recent Closing #1 Office

Who is your typical borrower? Recent Closing #1  Converted house into office space for insurance agent in Norcross  Loan request $275,000  Borrower needs to show cash reserves GA banking department  APEXable ™ because Borrower’s business has been closed for 18 months  Broker made 4 points -- $11,000  Deal closed 26 days from application

Who is your typical borrower? Recent Closing #2 Restaurant

Who is your typical borrower? Recent Closing #2  Japanese restaurant purchase in Roswell  Borrower opening second location  $500,000 loan request, borrower bringing significant cash to the table  Broker made 5 points - $25,000  Deal closed in 16 days  Deal was APEXable ™ because there were no operating financials for start up restaurant, but borrower had significant cash investment.

Who is your typical borrower? Recent Closing #3 Office Condo

Who is your typical borrower? Recent Closing #3  Office condo purchase  $125,000 loan amount  625 credit score  Deal was APEXable ™ due to borrower’s low credit score  Broker made 4 points - $5,000  Loan closed in 3 weeks

Who is your typical borrower? Commercial Loans Made Easy: A 5 Part Webinar Series Attend all five Apex Webinars and earn an extra $500 on your first loan closing! • Commercial Loans 101 • The Power of Marketing • Underwriting Commercial loans • Overcoming Objections: How to Sell Non-Conforming Commercial Mortgages • Beyond the Application – Getting your loan closed

Thank You! • We don’t charge any upfront fees Ryan Boyle • We charge only ONE lender point at closing • Brokers can make up to 5 points Commercial Account Executive • We close our loans in 2 to 4 weeks • We look at credit scores as low as 600 800-262-2739, X267 • We need only a 1003 or PFS, tri-merged rboyle@apexmtg.com credit report and summary to look at a deal