[Family man]

I have a client that is looking to acquire an off-market investment opportunity in PA.

Here are the basics:

* Retail/Office 12,000 sf on 5 acres ( Fully Leased out)

* NOI $470K

* Cap rate 8%

* Tenants are all doing well and all leases are several years out.(Day care, Edward Jones, Eye Doctor, Sir Pizza, Beer Distributor, Rockin Joes Coffee, Nail salon, Clothing store etc. )

* Purchase price $5M, Client fico: 800+

Does anyone knows what's the maximum leverage available for purchase like this?

Let me know if interested

PM me

[Olderguy]

Typically 80% LTV...

[NickHubbard]

I have a client that is looking to acquire an off-market investment opportunity in PA.

Here are the basics:

* Retail/Office 12,000 sf on 5 acres ( Fully Leased out)

* NOI $470K

* Cap rate 8%

* Tenants are all doing well and all leases are several years out.(Day care, Edward Jones, Eye Doctor, Sir Pizza, Beer Distributor, Rockin Joes Coffee, Nail salon, Clothing store etc. )

* Purchase price $5M, Client fico: 800+

Does anyone knows what's the maximum leverage available for purchase like this?

Let me know if interested

PM me

Check out Nathan Capital Group | https://nathancapgroup.com

or......

Titanic Capital | https://titaniccapital.co

[All_Access_Financial]

Did you get a chance to secure this loan yet? If not I can help, with a very low rate based on the information you shared. Do you want to set up some time to speak? I can be reached at 631-515-1230, and my email is hector@allaccess.biz

I have a client that is looking to acquire an off-market investment opportunity in PA.

Here are the basics:

* Retail/Office 12,000 sf on 5 acres ( Fully Leased out)

* NOI $470K

* Cap rate 8%

* Tenants are all doing well and all leases are several years out.(Day care, Edward Jones, Eye Doctor, Sir Pizza, Beer Distributor, Rockin Joes Coffee, Nail salon, Clothing store etc. )

* Purchase price $5M, Client fico: 800+

Does anyone knows what's the maximum leverage available for purchase like this?

Let me know if interested

PM me

[Yankeeman07]

I have a client that is looking to acquire an off-market investment opportunity in PA.

Here are the basics:

* Retail/Office 12,000 sf on 5 acres ( Fully Leased out)

* NOI $470K

* Cap rate 8%

* Tenants are all doing well and all leases are several years out.(Day care, Edward Jones, Eye Doctor, Sir Pizza, Beer Distributor, Rockin Joes Coffee, Nail salon, Clothing store etc. )

* Purchase price $5M, Client fico: 800+

Does anyone knows what's the maximum leverage available for purchase like this?

Let me know if interested

PM me

On the surface this would be a good SBA 7(a) Loan - typically 80% LTV - possibly up to 90% LTV - depending on many factors.
Your business owner would need in the range of $500,000 to $1M in cash to close this deal.

[Olderguy]

On the surface this would be a good SBA 7(a) Loan - typically 80% LTV - possibly up to 90% LTV - depending on many factors.
Your business owner would need in the range of $500,000 to $1M in cash to close this deal.

SBA is O/O...not NOO....property loan can be NOO.

[Yankeeman07]

SBA is O/O...not NOO....property loan can be NOO.

The devil is in the details - the poster did not indicate if the owner planned on being a tenant.

We just closed as strip center with the owner moving to the property after their current location lease expires.

https://www.sba.gov/funding-programs/loans/7a-loans


How do I use the 7(a) loan?


The purchase of real estate, including land and buildings


https://www.sba.gov/funding-programs/loans/7a-loans


How do I use the 7(a) loan?


The purchase of real estate, including land and buildings


https://www.sba.gov/sites/default/fi...-form-1920.pdf


Read Section "N"

SBA Loans have many twists and turns, but for qualified applicants a good option.
Also, depends on the Bank that is underwriting the loan -

BTW: I do get a chuckle from your web site wording:

"For example, I obtained a $250,000 term loan for a client with a brain tumor - SBA 7A loan"

[Olderguy]

I take it that "off market investment property" as NOO.

Oh and I did get a SBA 7A for a guy with a brain tumor.

(To clarify a SBA 7A loan requires life insurance which is impossible for a guy with a brain tumor. However, under SBA guidelines if you submit a succession statement that clarifies what will happen and who will run the company if the borrower dies they will waive the life insurance requirement).

[Yankeeman07]

"Oh and I did get a SBA 7A for a guy with a brain tumor."

I never noticed any health questions on a SBA Bank Application !

[Olderguy]

"Oh and I did get a SBA 7A for a guy with a brain tumor."

I never noticed any health questions on a SBA Bank Application !

Life insurance required for SBA 7A loan....guy with brain tumor can't get life insurance...

You can submit a succession agreement/statement and get a waiver of the life insurance requirement.

[Yankeeman07]

The 2 Banks that I rep for - main focus - Can the note holder repay the loan
and if the note goes south, how easily can the property be disposed of. Type of property, location, usages available are all factors.

Generally, participating lenders (Banks) for SBA 7(a) loans follow their normal internal policy for commercial loans when it comes to life insurance.

This is the response from VP of SBA Loans - I've never been directly involved in securing or requesting Life Insurance - that's handled by Underwriting,
so asked a 'what if question"


"If the loan is not “fully secured” by assets such as real estate or equipment, then life insurance is required for the principals of the business which may include sole proprietors, partners or members of LLCs, or those other individuals upon whom the business is dependent. If a principal is deemed uninsurable, then a letter from the insurer may be required.


In general, the procedural rules of the SBA require that any business that is tied to an individual or individuals must purchase life insurance to protect the individual and his/her family as well as the lender. Life insurance policies are often purchased for the full amount of the loan, but the amount of any collateral may be factored into the requirements."

Rules have exceptions - but for the Bank to be able to have the Loan Guaranteed by the SBA - there had to be adequate collateral, income to cover the note.
I would assume that was the case with your client.