• Percentage of Residential Units to Commercial Units
  • When 20% or less of the properties income comes from commercial units, the property is typically deemed a Tier 1 Mixed Use Property. If the income exceeds 20%, the property will beconsidered Tier 2 Mixed Use Property. Tier 2 properties are considered riskier by the Lender.
• Better than average occupancy rates (85% +)
  • Properties with higher occupancy rates are considered in a stable market. properties lacking occupancy can be associated with undesirable markets.
• Average or above average overall condition (Limited Deferred Maintenance)
  • Properties with limited maintenance issues indicate that the property was well taken care of. Extensive deferred maintenance can lead to "unforseen" issues that can potentially cost the owner substantially.
• Indivdually metered properties where the tenants pay utilities
  • Putting the burden of utility bills on the tenants equates to more income for the owner of the property. Ultimately increasing the properties value.
• Solid tenants with Year to Year leases (limited month to month tenants)
  • Stable tenants tend to take care of a property more often than transients. As well, the income is consistent with longer term tenants
• Strong Cash Flow (debt service of 1.2X)-- Calculated off the Net Operating Income
  • Leases don't always equate to strong cash flow. It is important to analyze the Net Operating Income when determining the cash flow & value of a property.
• Realistic capitalization rates on property listings (7-10% for most mixed use prop.)
  • The capitalization rate is determined by market factors & how much return a property is expected to deliver in the current market. In Larger Cities, you'll find CAP rates to be smaller, but in Smaller cities, you'll find them to be larger. However, you must keep in mind that capitalization is captured upon the sale of the property as well.
• Actual Rents compared to Market Rents (how do they compare?)
  • It is important to realize what comparable properties rent for in similar areas. Underwriting will only consider the lesser of the Market Rents or Actual Rents in their calculations. If you have a tenant paying 2X what the market will bear, the lender will only consider the market value of the property for underwriting purposes.

Why should I submit my loan to Nationwide Commercial Lenders...?

• Direct Access To Wall Street Securitizations (no middle men)
• A Paper, Flex Doc & Stated Income Programs Available
• Limited debt service coverage requirements
• NCL uses "common sense underwriting" when banks won't
• NCL finances underperfoming properties when others don't
• Up to 30 year amortizations & Fixed Rates Available
• "Brokers Protected - Premiums Paid"
• Closings in the name of Individuals, LLC, Corporations & Trusts
• Customer Service Expected of an Industry Leader

Typical Documentation You'll Need to Gather for your Commercial Loan Request:          (scan over the following for links to our forms)