Commercial Real Estate Lending

 Conventional commercial loans are mortgages that are provided by a bank,  credit union, savings institution, or other traditional financial  institution.  They are secured by a first lien position on the subject  properties being financed.  

These loans  are typically best suited for inexperienced borrowers, small loan  balances, specialty properties, or any other structure that may require a  personal guaranty. The collateral may be any type of commercial  real estate.  These loans do not always require previous experience.

 The short-term nature of these loans means they come with a higher interest rate than a permanent commercial mortgage loan.

The interest rate tends to be 50 to 200 basis points higher than a  traditional, fixed-rate mortgage, although the interest rate may  fluctuate depending on the nature of the deal.

Bridge financing gives owners the flexibility they need to reposition and stabilize properties. NEXXUS Global's  conventional loan programs can provide permanent financing upon stabilization, creating a seamless exit strategy. 

 A development loan involves the purchase of land and lot development for  further construction or sale. The land development loan funds the  procurement of raw land as well as the making, installing, and  construction of land improvements.

This loan can cover a variety of  land preparation projects, such as the installation of a power line,  water supply, and plumbing, as well as a sewer connection to the main  grid.

Commercial Real Estate Construction Loans are typically secured by a  first mortgage or deed of trust and backed by a purchase or takeout  agreement from a permanent lender.   

    Fannie Mae 

    Freddie Mac

    FHA

    Multifamily Construction

    Conventional Multifamily

    CMBS Multifamily

    Insurance Mortgages

    USDA

Multifamily loans are used by investors to finance multifamily properties between two to four units or commercial-residential properties of five units and up. These properties can include condos, townhomes, duplexes, apartment buildings, and portfolios of properties.

 Mezzanine financing is often used to fill the “middle” of a capital  stack. It can be structured in a number of ways, with both debt and  equity.
For instance, it can take the form of junior debt – such as a second  mortgage on the property. It can also be structured as preferred equity,  convertible debt or participating debt.   
In all cases, mezzanine financing is subordinate to senior debt, such as a traditional mortgage on the property.  

 Mezzanine financing is typically not secured by the property but rather the equity the owner holds in the property..

 Hard money loans have terms based mainly on the value of the property being used as collateral, not on the creditworthiness of the borrower.    The cost of a hard money loan to the borrower is typically higher than financing available through banks or government lending programs, reflecting the higher risk that the lender is taking by offering the financing. The increased expense is a tradeoff for faster access to capital, a less stringent approval process, and potential flexibility in the repayment schedule.

Hard money loans may be used in turnaround situations, short-term financing, and by borrowers with poor credit but substantial equity in their property. Since it can be issued quickly, a hard money loan can be used as a way to stave off foreclosure.