South End Capital Provides Fannie Mae Multifamily Financing For Borrowers Regected by Banks

Flexible loan program offers new hope to multifamily investors with imperfect qualifications.

We've aggressively expanded our multifamily loan program to offer bankable terms for borrowers deemed unbankable by other lenders.

              

South End Capital’s mid-April $3.2 million closing on its clients’ purchase of a $4 million multifamily property is just the latest coup for the Boston-based commercial real estate lender specializing in “hard to finance” transactions.
The financing for the 86-unit multifamily property in Livingston, CA had hit a wall with conventional lenders. The property was in a less than desirable tertiary market with a population of only about 13,000 people; what’s more, the borrowers had limited multifamily ownership and management experience, yet wanted a high loan-to-value (LTV) of 80% and better-than-market terms.
“Clearly, this was a loan on which most lenders would have great difficulty competing,” South End Capital Corporation (SECC) Founder and Managing Director Noah Grayson pointed out. Grayson’s firm, however, was able to provide a 7-year fixed, non-recourse loan amortized over 30 years at 4.69% and with no loan points, to boot. But that’s not unusual: The company’s nationwide multifamily loan program (five units and up) now offers 5-year fixed loans as low as 4.12%, 7-year fixed loans as low as 4.5%, and 10-year fixed loans as low as 5.05%, all amortized over 30 years (longer fixed periods are available).
According to Grayson, SECC will consider multifamily loan sizes from $50,000 to $20,000,000 and higher, with the best pricing (down to par) available on loans over $1,000,000. Loan-to-value (LTV) can go up to 80% on multifamily purchase transactions and rate-and-term refinances, and up to 75% on multifamily cash-out refinances. The company also offers non-recourse loans (no personal guarantee on the loan required). All US markets are eligible, regardless of population size or geographic location, and SECC will also consider multifamily loans for foreign nationals and bulk residential transactions under similar but slightly more conservative programs.
“We’ve aggressively expanded our programs in the past months,” Grayson explained, “specifically to assist entrepreneurial property investors and business owners nationwide who feel they have been denied access to capital at every turn. Our recent SECC closings demonstrate just how well our expanded programs are delivering.”
South End Capital Corp. works directly with borrowers and routinely with brokers, paying referral fees to its approved partners. To inquire about SECC’s expanded multifamily loan program and the many innovative programs available through South End Capital Corp., contact Noah Grayson directly at (888) 268.7778 ext. 2, or joel@southendcapital.com

South End Capital Corp - Small Balance Private Money Loans

South End Capital to Fund Small-Balance Private Money Loans for ‘Challenged’ Commercial Real Estate Borrowers

Nationwide program focuses on private money niche ignored by other lenders

We're focusing on smaller private-money loans for commercial real estate because this niche has been overlooked by most, if not all, lenders.

Boston, MA (PRWEB) April 29, 2014

South End Capital Corporation (SECC) announced today that it has launched a new and unique small private money program designed to assist borrowers who are seeking small-balance or small-size commercial real estate loans of $50,000 to $500,000. The funding is designed to accommodate borrowers with imperfect credit who are self-employed or seeking a swift and painless loan process.
According to SECC founder and Managing Director Noah Grayson, the firm will be lending on this program directly. “We are focusing on these smaller loan sizes specifically because they constitute a private money finance niche that has, to date, been overlooked by most—if not all—commercial real estate lenders. These lenders are ordinarily interested in closing private money loans of a million dollars and up; they shy away from anything under that, let alone under half a million.”
The program will also provide a financing option for commercial real estate owners and investors who fall out of bankable parameters because of their challenging credit or financial situations.
SECC’s new nationwide private money loan program has no population restrictions; primary, secondary and tertiary markets are generally allowed. Most commercial property types qualify, with loan-to-value ratios of up to 70 percent. Rates and terms start as low as 8.5 percent with no or low loan points. Loan closings can take place in as few as two to three weeks. Additional program criteria are available right now.
“This is a common-sense underwriting program with light documentation requirements,” Grayson pointed out. “It’s competitively priced and ideal for self-employed borrowers and small property investors who need custom-tailored loan terms.” SECC welcomes both borrower and broker inquiries (brokers working with SECC are protected). The firm also offers referral fees to approved partners.
To inquire about SECC’s new private money, non-conforming loan program and the many innovative programs available through South End Capital Corp., contact Joel Soforenko directly at (888) 268.7778 ext. 2, or joel(at)southendcapital(dot)com.

SECC Secures SBA 7(a) Funding for Self Storage Facility & Plagued Borrower

Impossible-to-Fund’ SBA Loan Closed by Undaunted South End Capital

Via Unrestricted Program and Firm’s Story-Based Approach, SECC Secures SBA 7(a) Funding for Plagued Borrower

The borrower needed SBA funding for an unbankable situation, and SECC's unrestricted SBA loan program came to the rescue.                  

Recently, a borrower seeking a high six-figure small business loan for his self-storage facility struggled to find a lender; at every turn he was impeded by his unbankable situation. Yet for commercial real estate and small business lender South End Capital Corp. (SECC), headquartered in Boston, the loan scenario was transactable. In fact, for SECC, such "impossible" loans are the bread-and-butter business that conventional lenders usually throw away.

This latest SECC closing is a case in point: The borrower needed $775,000 in SBA funding but had a recent bankruptcy (dismissed in 2012), business cash flow that was just break-even and didn’t meet underwriting guidelines, and property that was only 70% occupied. The client’s credit score hovered at 641, he couldn’t get his hands on YTD financials during his tax-season crunch, and his term life insurance policy didn’t meet SBA requirements.


“This kind of funding effort is what we’re all about. We offer the kinds of flexible programs that are designed to help real people with real problems—the 80 to 90 percent of potential borrowers who don’t have immaculate financial pictures but work hard every day to make their businesses succeed. Then we go to bat for them the way no one else will.”


SECC’s flexible loan program offered the self-storage facility borrower bankable terms for what other lenders would deem an unbankable situation. Among his firm’s assistance efforts, said Grayson, “We utilized debt-service projections and were able to waive the YTD data requirements; then we secured an exception for the life insurance coverage requisites. We got behind our Preferred Broker on this transaction because we value our client relationships and know how to work out of the box to close our brokers’ loans.”


Closing details: On the unrestricted SBA 7(a) loan for the 161-unit New Jersey self-storage facility, the interest rate was 6% (2.75% + WSJ Prime) and was quarterly adjustable, the loan was amortized over 25 years and SECC charged 0 loan points. Loan proceeds went to refinance the borrower’s first mortgage, cover closing costs and provide him with $25,000 in working capital.


To inquire about SECC’s unrestricted SBA 7(a) loan and the many innovative programs available through South End Capital Corp., contact Joel Soforenko directly at (888) 268.7778 ext. 2, or joel@southendcapital(dot)com.


ABOUT SOUTH END CAPITAL CORPORATION
With offices on both the East and West Coasts, SECC is a direct commercial real estate lender providing private money loans up to $500,000 nationwide, and offering SBA, multifamily, bridge and bankable loans up to $20 million in participation with third-party investors. SECC also provides training and marketing services to commercial mortgage brokers through all stages of their business development. Additionally, SECC offers same-day term sheets, excellent service and prompt responses, is broker-friendly and pays referral fees to approved partners. For additional information, visit http://www.southendcapital.com or contact Joel Soforenko toll-free at (888) 268.7778 x 2 joel@southendcapital(dot)com.

SBA Business Only Loan Program - No Real Estate

Loan Terms:

Amouint:               $50k - $350k
Recourse:             Personal & Corporate
Loan Types:          Business Expansion, Working Capital, Renovations,
Loan Types:          Leasing, Equipment, Inventory, Business Purchase
LTV:                      Non - Cash Flow Based
Business Types:     Any Type Existing Business (one year in business)
Territory:               Nationwide
Collateral:              Business Only  (no real estate required)
DSCR Min:             1.25%
Credit:                   Troubled Credit OK - No minimum scores
Interest Rate:        6.0%   (2.75% + WSJ Prime Rate)
Amortization:         10 years
Term:                    10 years
Pre Pay Penalty:    None

LOI Submission Requirements:
Personal Financial Statement
Credit Report
Tax Returns, most recent year
Letter of Explanation, Use of Funds

SBA 504 & 7A LOAN PROGRAMS (Purchase – Refinance – Construction)

Loan Terms:

Loan Limits:                 $1M – $10M (higher case by case)
Recourse:                    Personal and Corporate
Loan Types:                Purchase, Refinance, Construction
Max LTV:                     80 – 90%
Occupancy Type:       Owner Occupied (Min 51%)
Territory:                    Nationwide
Property Types:          All Commercial Properties
DSCR Minimum:          1.0
Credit Needed:            600
Interest Rates:            4.0 – 7.0%
Amortization:               20 – 25 – 30
Term:                          3 – 5 – 10 – 25, fixed or quarterly adjustment
Loan Points:                0 – 2
Pre Pay Penalty:          Declining

Gas Station Refinance, Cleaned Up Gas Leakage: SBA Loan

Loan Program:

Lender:                  Bank lends Nationwide
Loan Type:            SBA
Situation:               Hazardous Waste, Gas Tank Leakage.  Spill cleaned up
                             with EPA continual screening in progress
AMNT:                    Up to $5M
LTV:                        75%
INT:                        Prime + 2.75 and Adjusts Quarterly
PTS:                        2
TRM:                       25 / 25
PPP:                        5 - 3 - 1  (3 years)

SBA Loan Program (504)

Loan Terms:

Loan Limits:                   $500k - $10M (higher case by case)
Recourse:                     Personal and Corporate
Loan Types:                  Purchase, Refinance, Construction
Max LTV:                     90%
Occupancy Type:          Owner Occupied (Min 51%)
Territory:                     Nationwide
Property Types:            All Commercial Properties
DSCR Minimum:            1.0
Credit Needed:             660
Interest Rate:              4.0 - 7.0%
Amortization:                20 - 25 - 30
Loan Term:                 3-5-10-15 year fixed or qtrly adjustable
Loaan Points:               1 - 2
Pre Pay Penalty:           Declining