InterBay Funding Just One Source Also Full-Doc & Hard Money Loans   Our real estate department utilizes the appraisal report to assist in the determination of the property value. However, InterBay Real Estate Analysts arrive at a valuation based on their review of the appraisal report and it is the InterBay valuation that is utilized to compute the LTV. All appraisals are subject to review by InterBay's real estate department. All appraisals are desk reviewed, others are rejected as inadequate. In cases where there are questions concerning the appraisal report, the InterBay real estate department will contact the appraiser for clarification. In many cases, appraisers are able to supply additional information to support their opinion of value, however, it is important to note that this process always delays the review process. InterBay reserves the right to determine that a submitted appraisal is unacceptable. It is important that appraisers be engaged by InterBay so that they are aware of InterBay's appraisal requirements before the appraisal is started in order to avoid any misunderstandings. Also, appraisers need to make themselves available to the InterBay staff appraisers in order to avoid delays in the appraisal review process. Complete details about our process and requirements will be made available to the appraiser via our Engagement Letter and our Valuation Guidelines. Commercial Appraisal Review Process Appraisal Formats and Contents Appropriate formats and the required contents of each appraisal will be provided to the appraiser via the Engagement Letter and Valuation Guidelines. Some "form" reports are acceptable for specific property types, but Complete Summary narrative reports are more appropriate for most property types. Any questions regarding the format or content of a report will be discussed with InterBay's real estate department before the appraisal process begins. An executed Engagement Letter must be included with each appraisal, so the appraiser will be aware of our requirements before the assignment is started. Supporting Documents The appraisal should be accompanied by appropriate documentation (i.e. agreement of sale, rent roll, commercial lease, etc.) as described on the Engagement Letter and our Valuation Guidelines. The lack of relevant documents will delay the review process. Effective Dates The effective date of an appraisal must be within six (6) months of the date of closing. Selection of an Appraiser Effective June 1, 2004: InterBay utilizes Mercury Real Estate Services, LLC to select an appraiser for all new assignments from a database of existing appraisers, or by researching an appropriate appraiser. For information on the Engagement Process, a broker should rely on the InterBay Loan Officer or Real Estate Analyst; the Loan Officer has constant access to the Real Estate department. Loan Processing Because InterBay programs are stated income / stated asset, InterBay can close a loan as quickly as an appraisal and title report can be submitted and accepted by InterBay. Generally, InterBay closes loans within 4 weeks of submission. The process depends on the status of the appraisal and title report. The initial submission for pre-approval requires only a completed 1003, broker’s tri-merged credit report with credit scores and the InterBay loan request form. Pre-approvals are generally issued within 48 hours of receipt. The pre-approval is a conditional commitment to fund a loan based solely on the information supplied by the broker and the requirements stipulated in the pre-approval. InterBay utilizes the credit report submitted by the broker to evaluate the applicant’s credit and grade the loan as to price and permitted LTV ratio. InterBay does not run its credit report until the property appraisal has been reviewed and accepted by InterBay. Therefore, any changes in the borrower’s credit standing as reflected by the credit score may result in a change in price and LTV, as well as, denial of the loan. Additional supporting documentation or stipulations contained in the pre-approval must be submitted for underwriting review and acceptance prior to closing. Requests to waive pre-approval stipulations can only be authorized by an underwriter issuing a revised pre-approval form. No oral waiver of stipulations is allowed by any InterBay employee and will not be honored by InterBay under any circumstances. Brokers and applicants need to be aware that InterBay staff appraisers review all appraisals. We recommend that you reference the section on our Appraisal Process for more information. Mortgagor title commitments should be ordered once the appraisal has been approved. InterBay requires that all exceptions contained in Schedule BII of the title report be removed as of the time of closing. No loan can close with exceptions on section BII of the title report without the approval of InterBay’s legal department. Underwriting Process Pre-approval Underwriting Generally, a pre-approval contains all of the conditions necessary to have a loan approved for closing. A completed 1003, tri-merged credit report, and the completed Loan Request Form are required in order to be submitted to underwriting for pre-approval. Income – All InterBay programs are stated income, but the income must be stated by the applicant and included in section VZ of the 1003. No application can be considered complete with this section left blank. No InterBay employee is allowed to complete this section of the 1003 for any reason. InterBay does not verify an applicant’s income and relies solely on the applicant’s statements contained in the 1003 application. Credit – The primary borrower is the applicant stating the highest monthly income on the 1003. InterBay utilizes the credit report submitted by the broker to price and grade the loan for pre-approval. All loans are subject to a credit report ordered by InterBay prior to closing. Any change in the applicant’s credit status as determined by a change in the credit score may cause the loan to be re-priced and the LTV lowered. The loan may also be denied for a serious deterioration of credit quality. Assets - InterBay does not verify an applicant’s assets unless the circumstances of the loan, in the judgment of the underwriter, warrant verification of assets. Applications should have sufficient assets to complete the transaction requested in the application. Employment – InterBay does a verbal verification of employment prior to closing. All self-employed borrowers must have a verifiable business in existence at the time of closing. Licenses – InterBay requires all commercial borrowers and self-employed borrowers to submit copies of current business licenses. Special licenses for automotive properties are required, as well as, properties containing underground tanks. Verification of Mortgage - Verification of mortgage payment history is required in instances where the mortgage is not reported in the tri-merged credit report. In these instances InterBay requires 12 months cancelled checks, bank statements or, if applicable, a completed verification of mortgage. Verification of Rent – Verification of rent may be required based on credit history and loan circumstances. The form of verification must be 12 months cancelled checks. A rental verification form can only be utilized in instances where a management company or institution is collecting the rents. Rent Rolls – Rent rolls are required on all properties that contain 5 or more units and any commercial property that is not 100% owner occupied. The rent roll must be certified by the applicant as to authenticity and properly signed and dated. Estoppel Certificates – Estoppel certificates are required for non-residential properties ( 9+ units & mixed-use are excluded) where one or more tenants each occupy 40% or more of the square footage of the subject property. The tenant executes the estoppel certificate and its purpose is to state the tenant’s understanding of the terms and conditions of the lease. In addition, the estoppel certifies to InterBay that the tenant’s rights of ownership are subordinate to InterBay’s rights as the mortgagee. Surveys – InterBay does not require surveys unless the title underwriter will not remove the survey exception for the title report without a survey. Title Insurance – InterBay reserves the right to accept the title insurer. Title insurers must generally be approved and in good standing with FannieMae and Freddie Mac. county cuyahoga home loan columbus equity home loan ohio columbus ohio mortgage loan ohio purchase mortgage loan interest only loan ohio ohio small business loan ohio construction loan purchase loan ohio non conforming loan ohio commercial loan ohio home loan toledo ohio ohio loan officer ohio business loan mortgage lender columbus ohio mortgage lender cleveland ohio  mortgage lender toledo ohio mortgage lender akron ohio columbus equity home loan ohio mortgage company columbus ohio mortgage broker cleveland ohio  mortgage lender cleveland ohio ohio purchase mortgage loan eastern ohio mortgage  company local mortgage ohio internet mortgage ohio mortgage broker akron ohio mortgage toledo ohio mortgage company toledo ohio mortgage lender toledo ohio east ohio mortgage mortgage company akron ohio mortgage broker toledo ohio  ohio state mortgage company dayton mortgage broker dayton mortgage dayton mortgage south mortgage lender youngstown  mortgage company youngstown mortgage broker youngstown mortgage company cincinnati  mortgage lender commercial loan commercial loan officer commercial florida loan mortgage florida commercial mortgage broker commercial construction loan florida florida commercial lender  florida construction loan  florida purchase mortgage loan florida loan sba florida va home loan  florida stated income loan central florida home loan florida loan mortgage sarasota tampa florida mortgage loan  commercial florida loan mortgage construction loan in florida florida mortgage loan debt consolidation equity florida home in loan orlando home equity loan tampa florida new home buyer loan florida  south florida mortgage lender florida commercial lender  mortgage lender in south florida south florida mortgage lender miami mortgage program central florida home equity commercial loan miami miami online home loan estate loan orlando real mortgage company in jacksonville florida mortgage broker jacksonville florida refinance key west florida loan mortgage sarasota mortgage broker sarasota tampa florida mortgage loan home equity loan tampa florida commercial mortgage tampa company florida mortgage tampa tampa florida mortgage broker mortgage san jose california broker california home loan mortgage mortgage company san jose california mortgage lender san jose california first time home mortgage california california home loan ventura commercial mortgage broker california california commercial lender No Hassles No Junk Fees No Application Fees No Better Time to Refinance Call Loan Originator, Monica Cobbeldick at 440-808-8926 today! Home of the No Hassle Loan   HERE IS THE EXPLANATION OF THE 1003 FORM'S SECTIONS FOR YOU: I. Type of Mortgage and Terms of Loan Use the fields in this section to describe the basic type of loan you are looking for. II. Property Information and Purpose of Loan This section allows you to describe the property that this loan will be used to buy. III. Borrower Information This section specifies the personal information of the borrower and the co-borrower (if any). This section must be as complete as possible and specifically include the Social Security Number as most financial records are keyed to this number. IV. Employment Information This section allows you to tell us where you work and whom we may contact to verify employment. V. Monthly Income and Combined Housing Expense Information This worksheet section allows us to calculate how much of your monthly expenses will be tied to your mortgage payments. Each loan program has certain limits within which you must fall to qualify. VI. Assets and Liabilities Use this section to list all of your assets and outstanding debts. This section is fairly important. Your past performance in paying your debts will be major factor in what kind of loan you can qualify for. VII. Details of the Transaction You may leave section blank because it contains information that is not known until the loan is approved and all the fees are finalized. VIII. Declarations This section gives us some other background information on your financial situation that may have a bearing on the transaction. IX. Acknowledgement and Agreement You and the co-borrower (if any) must sign this section.  Your signature(s) verify that the information provided in this application is true and correct as of the date of application. X. Information for Government Monitoring Purposes Information on race and sex is voluntary.  Please read carefully and check the appropriate box. Commercial Underwriting Guidelines Commercial Financing is underwritten on a case by case basis. Every loan application is unique and evaluated on its own merits, but there are a few common criteria lenders look for in commercial loan packages. Financial Analysis A key component in making an underwriting evaluation is the debt coverage ratio. The DCR is defined as the monthly debt compared to the net monthly income of the investment property in question. Using a DCR of 1:1.10 a lender is saying that they are looking for a $1.10 in net income for each $1.00 mortgage payment. Typically they will determine the DCR ratio based on monthly figures, the monthly mortgage payment compared to the monthly net income. The higher the DCR ratio the more conservative the lender. Most lenders will never go below a 1:1 ratio ( a dollar of debt payment per dollar of income generated). Anything less then a 1:1 ratio will result in a negative cash flow situation raising the risk of the loan for the lender. DCR's are set by property type and what a lender perceives the risk to be. Today, apartment properties are considered to be the least risky category of investment lending. As such, lenders are more inclined to use smaller DCR's when evaluating a loan request. Make sure that you are familiar with a lender's DCR policy prior to spending money on an application. Ask them to give you a preliminary review of the investment property that you want to purchase. Information is free, mistakes are not. Loan to Value Unlike residential lending, commercial investment properties are viewed more conservatively. Most lenders will require a minimum of 20% of the purchase price to be paid by the buyer. The remaining 80% can be in the form of a mortgage provided by either bank or mortgage company. Some commercial mortgage lenders will require more than 20% contribution towards the purchase from the buyer. What a bank/lender will do is subject to their appetite and the quality of the buyer and the property. Loan to value is the percentage calculation of the loan amount divided by purchase price. If you know what a lender's LTV requirements are, you can also calculate the loan amount by multiplying the purchase price by the LTV percentage. Keep in mind that the purchase price must also be supported by an appraisal. In the event that the appraisal shows a value less then the purchase price, the lender will use the lower of the two numbers to determine the loan that will be made. Credit Worthiness For businesses less than three years old, personal credit of principals will be evaluated. This may hold true for longer periods of time for tightly held companies. For corporations, business performance and credit ratings will be evaluated with a proven track record. Property Analysis Fair Market Value and Fair Market Rent will be analyzed. Special use property may require additional underwriting. Age, appearance, local market, location, and accessibility are some other factors considered. Commercial LTV Ratio The loan-to-value (LTV) ratio is probably the most important of the 3 underwriting ratios. The loan-to-value ratio is defined as: LTV Ratio = Total Loan Balances (1st mtg+2nd mtg +3rd mtg) / Fair Market Value of the Property First let's look at the numerator. If the borrower is only applying for a first mortgage, and there will be no other loans on the property, then the beginning balance of the new loan requested should be inserted in the numerator. However, if the borrower is applying for a second mortgage, then the "underwriter" (the person who determines whether or not the loan qualifies) should insert the sum of the first and second mortgages in the numerator. Similiarly, if the borrower is applying for a third mortgage, then the underwriter should insert the sum of the first, second and third mortgages into the numerator. When the borrower is applying for a second or third mortgage, the loan-to-value ratio is often known as the combined loan-to-value ratio (CLTV ratio). Now let's look at the denominator. Generally the fair market value of a property is determined by an appraisal. There is one important exception, however. When the proceeds of a mortgage loan are used to buy the same property that is securing the loan, then that mortgage is known as a "purchase money loan." If the appraisal comes in lower than the purchase price in a "purchase money" transaction, then the lender will use the LOWER of the purchase price or appraisal. Mortgage brokers are often asked by real estate agents and buyers to base their loan on the appraised value rather than the purchase price. Their claim is that they have negotiated a super deal and that the property is worth much more than what they are paying for it. This may be so (although generally untrue), but lenders always base their maximum loan on the lower of purchase price or appraisal. The lender's argument (its their money, so there is really very little argument) is that an appraisal is really no more than an estimate of fair market value, no matter how competent or conscientious the appraiser may be. The only true indicator of value is the marketplace in which "a willing buyer and a willing seller, each in full knowledge of the salient facts, and neither under undue pressure, agree upon terms." If the property sells for "X," then it is probably only worth "X." Debt Ratios When analyzing the personal budget of a borrower, lenders use two different debt ratios to determine if the borrower can afford his obligations. These two debt ratios are: Top Debt Ratio Bottom Debt Ratio The "top" debt ratio is defined as: Top Debt Ratio = Monthly Housing Expense/Gross Monthly Income By "monthly housing expense" we mean either the borrower's monthly rent payments, or if she owns her own home, the total of the following - Monthly Housing Expense 1st mortgage payment on home plus Real estate taxes (annual cost/12) plus Fire insurance (annual cost/12) plus Homeowner's association dues(if home is a condo or townhouse) plus Second mortgage payment (if any) plus Third mortgage payment (if any). You will often hear the term P.I.T.I. It refers to (P)rincipal, (I)nterest, (T)axes and (I)nsurance. While P.I.T.I. is not exactly the same as Monthly Housing Expense because it does not include homeowner's association dues, the two terms are often used interchangeably. Lenders have learned over the years that a borrower's "top" debt ratio should not exceed 25%. In other words, a person's housing expense should not exceed 1/4 of his income. While lenders will often stretch this number to as high as 28%, traditional lending theory maintains that anyone with a debt ratio in excess of 25% stands a good chance of developing budget problems. The second ratio that lenders use to determine if a borrower can afford her obligations is the "bottom" debt ratio. It is defined as follows: Bottom Debt Ratio = (Total Housing Expense + Debt Payments)/Gross Monthly Income The only difference between the two ratios is the inclusion in the numerator of "debt payments." Debt payments include the following: Debt Payments Car payments Charge card payments Payments on installment loans, for example - a payment on a washer & dryer that the borrower purchased. Payments on personal loans, for example - a signature loan from the borrower's bank. What is not included in "debt payments" is Utilities such as PG&E, water or telephone and payments on real estate loans. Real estate loans are usually offset first by the net rental income from the property. If the borrower has a net positive cash flow from all his rentals, then the net income is usually added to his "gross monthly income." If the borrower has a net negative cash flow from all of his rental properties, then the amount of the negative cash flow is usually added to the numerator of the "bottom" debt ratio as if it were a monthly debt obligation, like a car payment. Traditional lending theory maintains that a borrower's "bottom" debt ratio should not exceed 33 1/3%. In other words, the total of the borrower's housing expense and debt obligations should not exceed 1/3 of his income. Lenders often will stretch on this ratio to as high as 36%, and some have even been known to stretch as high as 40% or more. Obviously a loan with a debt ratio of 40% is a far more risky loan than a loan with a debt ratio of 32%. Debt Service Coverage Ratio (DSCR) The most important ratio to understand when making income property loans is the debt service coverage ratio. It is defined as: DSCR = Net Operating Income (NOI) / Total Debt Service To understand the ratio it is first necessary to understand the numerator and the denominator. Let's take a look at net operating income (NOI) first. Net operating income is the income from a rental property left over after paying all of the operating expenses: Gross Scheduled Rents $100,000 Less 5% Vacancy & Collection Loss $5,000 ________ Effective Gross Income: $95,000 Less Operating Expenses Real Estate Taxes Insurance Repairs & Maintenance Utilities Management Reserves for Replacement Total Operating Expenses: $30,000 Net Operating Income (NOI) $65,000 Please note that lenders always insist on some sort of vacancy factor regardless of the actual vacancy rate in an area to cover collection loss. In addition lenders always insist on using a management factor of 3-6% of effective gross income, even if the property is owner-managed. Their logic is that they would have to pay for management if they took back the property. Finally, NOTE THAT WE HAVE NOT INCLUDED LOAN PAYMENTS AS AN OPERATING EXPENSE. Next let's look at the denominator, Total Debt Service. This includes the principal and interest payments of all loans on the property, not just the first mortgage. NOTE THAT WE HAVE NOT INCLUDED TAXES AND INSURANCE. They were already accounted for above when we arrived at net operating income (NOI). To calculate the debt service coverage ratio, simply divide the net operating income (NOI) by the mortgage payment(s). For the sake of simplicity, let us assume that there is only one mortgage on the property: $500,000 First Mortgage 11% Interest, 30 years amortized Annual Payment (Debt Service) = $57,139 Then: DSCR = Net Operating Income (NOI) = $65,000 Total Debt Service $57,139 DSCR = 1.14 Obviously the higher the DSCR, the more net operating income is available to service the debt. From a lender's viewpoint it should be clear that they want as high a DSCR as possible. The borrower, on the other hand, wants as large a loan as possible. The larger the loan, the higher the debt service (mortgage payments). If the net operating income stays the same, and the loan size and therefore the debt service increases, then the lower the DSCR will be. Life insurance companies are very conservative and generally require a 1.25 or 1.35 DSCR. This means that their loan-to-value ratios are low. Savings and loans (S&L's) generally only require a 1.20 DSCR, and sometimes will accept a DSCR as low as 1.10. A DSCR of 1.0 is called a break even cash flow. That is because the net operating income (NOI) is just enough to cover the mortgage payments (debt service). A DSCR of less than 1.0 would be a situation where there would actually be a negative cash flow. A DSCR of say .95 would mean that there is only enough net operating income (NOI) to cover 95% of the mortgage payment. This would mean that the borrower would have to come up with cash out of his personal budget every month to keep the project afloat. Generally lenders frown on a negative cash flow. Some lenders will allow a negative cash flow if the loan-to-value ratio is less than around 65%, the borrower has strong outside income such as an electronic engineer, and the size of the negative is small. Lenders rarely allow negative cash flows on loans over $200,000.   The bulk of the energy spent "processing" a loan is merely an attempt to verify the numbers that go into the numerator and denominator of the above 3 ratios. The Loan-To-Value Ratio (LTVR) is defined as follows: Loan-To-Value= Total loan balances (1st mtg+2nd mtg+3rd mtg) / Fair market value (as determined by appraisal) Loan-To-Value Ratios seldom exceed 80% because the lender always want some extra protection against default. The second ratio that lenders use when underwriting a loan is the Debt Ratio. The Debt Ratio compares the amount of bills that the borrower must pay each month to the amount of monthly income he earns. More precisely, the Debt Ratio is defined as: Debt Ratio = Monthly Debt Obligations / Monthly Income Obviously someone whose Debt Ratio is 150% is in trouble. A Debt Ratio of 150% would mean that a borrower's obligations are one and a half times his income. Debt Ratios seldom are allowed to exceed 40% in practice. The final ratio used in lending is the Debt Service Coverage Ratio (DSCR). The Debt Service Coverage Ratio is a sophisticated ratio only used for large loans on income producing properties. It is defined as: Debt Service Coverage Ratio = Net Operating Income / Debt Service Net Operating Income is the income from a rental property after deducting for real estate taxes, fire insurance, repairs, and all other operating expenses; and Debt Service is the mortgage payment on the property. Most lenders insist that this ratio exceed 1.0. A debt service coverage ratio of less than 1.0 would mean that the property did not produce enough net rental income for the owner to make the mortgage payments without supplementing the property from his personal budget. Interest Rate Survey Prequalification Wizard Secure Application Market Snapshot Mortgage Calculators Tax Benefits Calculator Payment Calculator Mortgage Commercial Property Types Listed below is a partial list of properties that require commercial financing.     Multi family     Retail    Garden Apartments Hi-Rise Apartments Mid-Rise Apartments Low/Mod Income Student Apartments Senior Apartments Underlying Coop Regional Enclosed Strip Center Outlet Mall Free Standing Single Tenant Regional Unenclosed     Office     Health Care   Single Tenant Hi-Rise Tower Mid-Rise Office Office Over Retail Congregate Living Nursing Home Rehabilitation Ambulatory Care   Office        Heavy Manufacturing Light Manufacturing Warehouse/Distribution Owner Occupied Multi-Tenant Self Storage Special Purpose Facts on Commercial Lending... (Things my competitors don't want you to know!!!) Typically, to arrange and structure a commercial real estate debt is a complicated procedure especially in the commercial lending area. Traditional Lenders offer high LTV's and comparative rate, but require: • Full documentation (personal taxes and financials) • Large down payment usually 25 to 30% • Strong credit and experience. • Seller carrying a 2nd T.D. are not allowed. • Most loan programs are balloon payments due in 5,7,10 yrs. • Most transactions take from 90 to 120 days to close. • Property requires strong D.S.C.R's . • Environmental studies may be needed (Phase I & II) • Also be prepared for up front fees and others... Hard Money Lenders: • Will finance your property fast • Providing that you pay interest rates between 14 to 16%. • Points from 7 to 10%. • Low LTV's and very short terms typically 1 to 2 years. BUT WE have the Perfect Formula: • Streamline documentation. • Flexible underwriting guidelines. • Comparative rates and terms. • Faster closings.   InterBay Funding Pre-approval Underwriting (We also have 9 additional lenders and investors!) Have the following items available when you apply: Name and address of your employer(s) and copies of your two most recent pay stubs. Copies of your W-2 forms for the past TWO years. If you have income in addition to your salary, and you wish to have it considered, have copies of your federal tax returns for the past two years. If you are self-employed, have copies of your federal tax returns for the past two years, and copies of your company's year-to-date profit & loss statement, along with a balance sheet prepared and signed by an accountant. Name and address of any financial institution(s) where you have accounts, and copies of your three most recent statements. If you already own property, have the name and address of any institution(s) that holds your mortgage(s) on that property, and copies of your recent statements. A signed copy of your deposit receipt or purchase agreement for your new home. An estimate of your outstanding debt, along with account numbers for your credit cards, outstanding loans, mortgages and bank accounts. Any other information that might give a clear picture of your financial situation. During the loan process, you may be required to provide additional information not mentioned above to speed the approval process of your application. Bay Portal Companies, Inc. POC: Monica Cobbeldick Fax your docs to: 440.250.8889 26509 Russell Rd., Bay Village, OH 44140   InterBay Funding Pre-approval Underwriting (We also have 9 additional lenders and investors!) PROGRAM:                       *FULL DOC LOANS   ·          Loan Purpose : Permanent first mortgage loans for Acquisition financings and  refinancing.   ·          Financing Size:  $100,000 – Minimum - can go to 25M!!!                                                                                     $3,000,000 – Maximum                                                                                                 Now go up to              $ 3,000,000 Max CLTV 85%   ·          Terms:             6 Months Adj., 2,3,7,15,20 & 30 Yrs   ·          Amortization:                15, 20 & 30 Years   ·          Loan to Value Ratio:     Up to 80% - Multifamily, Mixed-Use Up to 75%- Office, Retail, Warehouse, Self-storage and Mobile Home Parks.                                      95% CLTV Available   ·          Interest Rate:                Fixed from 2,3,7,15,20 & 30 Years                                                                                     Rates starting at 5.500% Rate Locks Available on all  programs.   ·          Collateral:                     First Mortgage, recourse loans.   ·          Prepayment:               Prepayment Penalty waived after two                                                                                                       years if sold   ·          Funding:                       30 to 45 business days following                                                                                                         execution of Application.   ·          Submission:                  The following documents are                                                     required for our initial review:                               1) MetWest submission form. 2) Credit Report (Minimum FICO of 640)   3) Completed 1003 plus Loan Supplement. 4) Rent Roll, 2 yrs Income & Expense  Statements                                Proposals will be quoted within 72 hours.   Financing Options Credit Lines Under a credit line agreement, the lender supplies a business with funds intended to fill temporary shortages in cash that are brought about by timing differences between outlays and collections. Typically used to finance inventories, receivables, project or contract related work. Short-Term Loans Used for seasonal build-ups of inventory and receivables. Generally re payed in a lump sum at maturity, made on a secured basis and are for a term of a year of less. Asset Based Loans Lender advances funds based on a percentage of your current assets. The loan is used as source of funds for working capital needs. Lender typically takes a security position in the assets owned by the business. Contract Financing Funds are advanced to you as work is performed. Payments by the contracting party are generally made directly to the lender. Factoring Factors actually buy your receivables and rely on their own credit and collection expertise. Essentially, your customers become their customers. Factoring is used by firms who are unable to obtain bank financing. The cost of financing is usually higher than other forms of S-T financing. Term Loans Used to finance your permanent working capital, new equipment, buildings, expansion, refinancing, and acquisitions. Commercial banks are the major source of funding. The term of the loan is based on the useful life of the assets being financed or collaterized. Your projected profitability and cash flow are two key factors lenders consider when making term loans. Equipment and Real Estate Loans Loans are fully secured by the equipment being purchased. Typically banks loan 60-80% of the value of the equipment and is repaid over the life of the equipment. Lenders make long term loans secured by commercial and industrial real estate. The loan is usually made up to 75% of the value of the real estate to be financed. Repayment terms range from 10 to 20 years. Lenders also make second mortgages on real estate. The amount of the second mortgage is based on the appraised market value and the amount of the first mortgage. Leasing Can be accomplished through a bank, leasing or finance company. Your business will be subject to the same type of review as when seeking a loan, specifically cash flow of company, value of lease object and useful life. Lease terms range from 3 to 5 years. At the end of the lease, there are generally 3 options: purchase, renew and return. 3-15 YR Balloon loans Balloon loans offer interest rates that are fixed for a period of years. Typically these loans are pegged to a treasury index. Terms are for 3, 5,7,10 or 15 years. The amortization schedules are generally for 20 or 25 years. When a balloon loan matures at the end of the agreed term, the remaining principle balance outstanding is due at that time. The borrower can pay off the loan by either selling the property or refinancing. Investment property is typically owned for a previously defined period of time. Analyze your investment strategy before securing a balloon. Having to redo a loan is expensive. Adjustable rate loans An Adjustable rate loan will typically fully amortize with no balloon features. These loans may or may not have adjustment caps. The rate is determined by an index plus a margin. The indices used are generally U.S. treasury bond rates. Rates are adjusted at a certain point in time using either the current rate of the index in question or the average of the index for the prior year. In either event, the index used will correspond to the adjustment term. If the loan is a three year adjustable, then the index used should be the three year treasury index. Some adjustable rate loans are fixed for an initial period of years and then will adjust after that period. For example a 5/1 adjustable is fixed for the first five years and there after will adjust each year. The index used will be the one year treasury rate. Please note that commercial lending is not standardized as it relates to programs and to guidelines. Banks must meet certain federal standards, but the index, margin, amortization, term and fees are components that are controlled by the investor based on their risk profit analysis. Remember that this mortgage will be the greatest expense your investment property will be responsible for. As such we recommend that you consult your real estate agent and your loan officer to assist in providing you with all the information needed to make a complete and accurate choice.   Questions to Ask Yourself Are you and your business credit worthy? -Your personal and business credit ratings will be analyzed. What kind of money do you require? -Short, long, intermediate term money or equity capital. How much money do your need? -Present exactly what you need and what it is for. Do you have sufficient collateral? -Your collateral must equal the loan amount at a minimum. What are the Lender's rules? -Ask about Loan to Value's and Debt Coverage Ratios. What kinds of limitations will be set by you? -Know your comfort level with rate, payment, and term. Proposed Loan Proceeds Disbursement Refinance P/O Mtg   Purchase Purchase Price     P/O Taxes     Down Payment     Closing Costs     Seller Financing     Cash Out     Loan Amount     Other     Other     LOAN TOTAL     LOAN TOTAL               Proposed Loan Terms Rate     Am Term     LTV     Type     Prepay     Lockout                     Proposed Collateral Year built   Address   # of Buildings:   Sq. footage:   Lot size:   Occupancy %   O/O%   # of Units in subject property   # of Units O/O   # of Units Non-O/O   Urban or Rural   Describe specific use of subject property:     Describe all businesses that occupy subject property (ie. shoe store, boutique, dry cleaners, etc.).     Orig. Purchase Price Date Income Expense NOI Real Estate Value Source Date Summary (Explain purpose, history, relevant property info)         FOR OFFICE USE ONLY FICO EXP TYPE LTV DSCR DTI Company Name ____________________ Ph: ______________ Fax _____________ ANNUAL INCOME                                                                                                               LAST 12 MONTHS RENTAL INCOME COLLECTED   OTHER INCOME             TOTAL INCOME COLLECTED     ANNUAL EXPENSES                                                                                                                                    LAST 12 MONTHS TAXES   INSURANCE   GAS   ELECTRICITY   WATER/SEWER       PEST CONTROL   SECURITY   GARDENER   RESIDENT MANAGER   OFFSITE MANAGEMENT   SUPPLIES   POOL SERVICE   CLEANING SERVICE   ADVERTISING   TELEPHONE   BUILDING MAINTENANCE & REPAIR   PAINTING & DECORATING   OTHER        TOTAL EXPENSES            NET OPERATING INCOME     RENT ROLL     Tenant Name Unit # Sq Ft Lease Start Lease End Base Rent Expense Arrangements                                                                                     100 commercial loan, 100 commercial mortgage, 100 financing commercial loan, 100 ltv commercial loan, acquire commercial lender mortgage, advance cash commercial loan, affiliate commercial mortgage program, American commercial mortgage, amortization commercial loan schedule, apartment commercial loan, apartment construction lender, apartment loans, apartment mortgage, application commercial form loan, bad credit commercial loan, bank commercial Europe gmac mortgage, bank commercial fleet mortgage, bank commercial loan, become broker commercial mortgage, best commercial mortgage, best commercial mortgage rate, broker commercial loan mortgage, business commercial finance mortgage, buyer of commercial mortgage note, calculate commercial mortgage payment, calculator commercial loan mortgage, commercial balloon loan, commercial boat loan, commercial bridge loan, commercial building loan, commercial business loan, commercial company federal mortgage, commercial company loan, commercial construction estate loan real, commercial construction loan, commercial construction loan company, commercial doc loan no, commercial equity loan commercial down loan money no, commercial estate loan real small, commercial fargo loan well, commercial fargo mortgage well, commercial federal loan savings, commercial federal mortgage, commercial federal mortgage corp., commercial federal mortgage corporation, commercial fixed rate mortgage, commercial form loan, commercial hard money loan, commercial hard money mortgage, commercial hotel loan, commercial income loan stated, commercial income mortgage stated, commercial industrial loan, commercial information loan, commercial insight mortgage, commercial insurance lender mortgage, commercial investment mortgage, commercial land loan, commercial lenders, Commercial loan, commercial loan amortization, commercial loan application, commercial loan broker, commercial loan calculator, commercial loan document, commercial loan documentation, commercial loan financing, commercial loan for a church, commercial loan interest rate, commercial loan lead, commercial loan lender, commercial loan mortgage originator, commercial loan mutual Washington, commercial loan officer, commercial loan pricing, commercial loan process, commercial loan rate, commercial loan rates, commercial loan refinancing, commercial loan underwritings commercial loan, commercial loan wholesale, commercial loans, commercial mortgage, commercial mortgage alert, commercial mortgage backed securities, commercial mortgage bank, commercial mortgage banker, commercial mortgage banking, commercial mortgage broker, commercial mortgage calculator, commercial mortgage company, commercial mortgage direct lender, commercial mortgage finance, commercial mortgage financing, commercial mortgage interest rate, commercial mortgage lead, commercial mortgage lender, commercial mortgage lenders., commercial mortgage lending, commercial mortgage loan, commercial mortgage loan online, commercial mortgage loan rate, commercial mortgage loans, commercial mortgage non recourse rate, commercial mortgage program, commercial mortgage property rate, commercial mortgage provider, commercial mortgage quote, commercial mortgage rate, commercial mortgage rates, commercial mortgage refinance, commercial mortgage request form, commercial mortgage residential, commercial mortgage securities association, commercial mortgage training, commercial mortgage underwriting, commercial mortgage wholesale, commercial mortgages, commercial property loan, commercial property loan rate, commercial property loans, commercial property mortgage, commercial real estate loan, commercial real estate loan rate, commercial real estate loans, commercial real estate mortgage, commercial real estate mortgage broker, commercial real estate mortgage rate, commercial second mortgage, construction loan, current commercial mortgage rate, debt coverage ratio commercial mortgage, first commercial mortgage, fixed commercial loan rate, franchise commercial loan, gmac commercial mortgage, gmac commercial mortgage corp, gmac commercial mortgage corporation, interest only commercial loan, interest only commercial mortgage, international commercial loan, key commercial mortgage, large balance commercial loan, large commercial loan, mortgage lender commercial loan, mortgage loans, mortgage rates, mortgages, refinance commercial loan, small balance commercial loan, small business commercial loan, small commercial loan, small commercial mortgage, to be contacted by a commercial mortgage loan officer, unsecured commercial loan, wholesale mortgage lender commercial,    Some of the common loan types associated with Commercial Real Estate Loans Acquire or Expand a Business, Acquisition and Development Project, Adult Care, Apartment Complexes, Apartments 5+ Units, Asset Financing, Asset Leasing, Automotive Repair Shop, Bars, Bed and Breakfast Inn, Boutique Hotel, Boutique Motel, Bridge and Private Money, Cocktail Lounge, Equipment Financing, Equipment Leasing, Gas Station, Hard Money Financing Programs, Large Balance Commercial, Mezzanine Financing Programs, Mobile Home Park, Motel, Multi Family Units, Nursing Home, Office Complex Funding, Office Financing Programs, Purchase, Restaurant, Self Storage Unit, Small Balance Commercial, Special Use Hotel, Stated Assets., Stated Income Financing!   Interbay Funding Commercial Loans Interbay Commercial Mortgages Interbay Funding Ohio Residential Mortgages USA Commercial Loans Ohio Mortgages for Purchases Ohio Mortgages for Refinancing Mortgage Protection Insurance Ohio Mortgage Pre-approval Ohio Free Loan Consultations Ohio Bankruptcy Ohio Less Than Perfect Credit Mortgages Ohio Construction Loans Ohio Apartment Building Mortgages Ohio Low Mortgage Interest Rates InterBay Funding Lender Met-West Lender Velocity Commercial Lender Interest Only Loans JUMBO Loans Super JUMBO Loans LIBOR Investment Property Commercial Real Estate Commercial Real Estate Loans Bay Portal Companies FSBO Bruce Cobbeldick Underwriting Fast Pre-Approvals Appraisals Home Inspections Property Managers Landlords Residential Conventional Adjustable Rate Mortages ARM Fixed Rate Mortgages For Sale By Owner Ohio Lending Solutions LendingLogic.net

The bulk of the energy spent "processing" a loan is merely an attempt to verify the numbers that go into the numerator and denominator of the above 3 ratios. The Loan-To-Value Ratio (LTVR) is defined as follows: Loan-To-Value= Total loan balances (1st mtg+2nd mtg+3rd mtg) / Fair market value (as determined by appraisal) Loan-To-Value Ratios seldom exceed 80% because the lender always want some extra protection against default. The second ratio that lenders use when underwriting a loan is the Debt Ratio. The Debt Ratio compares the amount of bills that the borrower must pay each month to the amount of monthly income he earns. More precisely, the Debt Ratio is defined as: Debt Ratio = Monthly Debt Obligations / Monthly Income Obviously someone whose Debt Ratio is 150% is in trouble. A Debt Ratio of 150% would mean that a borrower's obligations are one and a half times his income. Debt Ratios seldom are allowed to exceed 40% in practice. The final ratio used in lending is the Debt Service Coverage Ratio (DSCR). The Debt Service Coverage Ratio is a sophisticated ratio only used for large loans on income producing properties. It is defined as: Debt Service Coverage Ratio = Net Operating Income / Debt Service Net Operating Income is the income from a rental property after deducting for real estate taxes, fire insurance, repairs, and all other operating expenses; and Debt Service is the mortgage payment on the property. Most lenders insist that this ratio exceed 1.0. A debt service coverage ratio of less than 1.0 would mean that the property did not produce enough net rental income for the owner to make the mortgage payments without supplementing the property from his personal budget.

Our Service Level Agreement (SLA) stipulates these expectations: At Bay Portal Companies, we are serious about being easily accessible throughout the week. We answer your call - be it a weekday or the weekend!  We realize that most real estate transactions take place after working hours and on Saturday or Sunday!  So, while some loan officers are content with letting their Purchase Leads or Refi Applications sit in their Voice-Mail for two or three days, we realize your need for speed! We understand TIME TO VALUE and the cost of missed opportunity, so we have a policy of  returning all phone calls within 30 minutes or less, 12 hours a day, 7 days a week. Period. As a senior mortgage planner with a major brokerage with offices in Ohio, and South Carolina, our size and technological savvy allows our team of mortgage professionals to assist you by putting you in a better financial position. I understand that cash-flow is important to all my clients. Call me if you have any problems or concerns!  Our team has been selected and trained to offer top-shelf service!   We specialize in SBA, Commercial Business Loans, and Hard Money Loans. As an informed and savvy team of mortgage professionals, we can ensure rapid approval decisions combined with the industry's lowest rates. This ensures we issue Pre-Approvals quickly (we know real estate agents HAVE THE NEED FOR SPEED!) and that our customers can take advantage of the lowest possible mortgage payments available - - - we focus on fast fundings and saving clients the kind of money that pays us the highest compliments possible - referrals!  CALL 440-636-3662 TODAY!   WE ARE AN INTERBAY PREFERRED PARTNER AS A LENDER WE OFFER OUR OWN WAREHOUSE LINE PLUS WE HAVE WHOLESALE BROKER MATRIX PRICING WITH $30 MILLION IN OUR PIPELINE, OUR RATES ARE LOW! We are committed to seeing to it that our loan officers are trained professionals, accessible and committed to quality service. Contact me if you have any concerns or delays. My direct phone line is 440-636-3662 We specialize in Commercial/Business/SBA/Hard Money loans. Our team approach means that each loan officer has a staff of caring associates, who help us deliver speedy Pre-Approval Letters and F-A-S-T Fundings. Get a lender who listens and gets it right the first time! Our FREE Fax-Back Loan Quote Program lets borrowers send us their Good Faith Estimate from our competition via fax, and within four (4) hours or less, we send our proposal, circling the line items where our rates, fees and/or closing costs are lower than the competition. We offer everything from 30 year Fixed Programs and Interest Only products to Hard Money and Flex-Pay loans. Be it residential, business, commercial, vacation, second home or investment property, we are revolutionizing the real estate finance world! Ask us about our Talking Loan Officer Signs, FSBO Sales Kits and Flat Fee Closing Costs. We believe that Thought Leadership, genuine helpfulness and hi-tech access to our people and processes sets us apart. We take the mystery out of mortgages! Get the low-cost loan you deserve. Contact Bruce Cobbeldick's team of mortgage bankers today, and sidestep the middle man. We feature: NO BROKERS FEES. NO DELAYS. NO JUNK FEES, AND NO HASSLES! Surf Our Commercial Loan Division's Information: "Where America's Entrepreneurs go for a low-cost loan!" Phone: 440.636.3662 We can do loans in all 50 states and are open Mon - Sun 9-9. We answer your call !!! RESIDENTIAL LOAN OFFICERS, LAWYERS, CPA'S, INSURANCE AGENTS: YOU CAN CO-BROKER OR COLLECT FINDER FEES WITH US! Here is what you need to submit your scenario if you are a co-broker or a borrower... Form 1003 - FNMA loan application Tri-Merge Credit Report - ALL THREE BUREAUS Certification and Authorization Form Bio/Resume reflecting investor experience / industry experience Environmental disclosure Copy of current rent roll - copy of leases Copy of most recent title insurance policy Copy of purchase agreement (where applicable) Copy of hazzard insurance policy Copy of survey .JPEG images of property/land/buildings (compilation of exterior and interior) Copy of most recent real estate tax bill Executive Summary stating what does this scenario make good strategic sense to pursue Personal and Business Financial Statements Check for $350 for Underwriting and Admin Fees (once RATE/TERMS/FEES accepted by borrower) OUR MISSION As mortgage bankers who can also broker out loans and do Hard Money, SBA and secure Wall Street investors funding, we maintain and strengthen interaction with the Nation's top conduits and lending sources, leveraging Private Money, regional and local Banking entities on a daily basis. Our current list of lending resources, including over 450 Lenders nationwide, allowing us to identify which lender and programs BEST satisfy our CLIENT'S NEEDS. We are not tied to any lender's specific program, but are instead committed to matching the client's specific, unique requirement with the BEST financing program we can identify. By knowing what deal types our resource lenders prefer, we help create a favorable outcome for both the lender and borrower in just about any loan transaction. OUR STRATEGY While Carteret's team of  and processors and mortgage professionals not being tied to any Lender's "charter" or programs or quotas, we make every effort to understand what loan types different Underwriters and Investors like, and what part of their programs best benefit our clients strategy. We strive to answer our clients calls and avoid lengthy delays. We make every effort to answer our phones and do not hide behind voice mail or offer excuses when it comes to our Commercial Division. We understand that every loan is somebody's dream, someone's livelihood and so we take great pride in being accessible 7 days a week, 12 hours a day, every single day of the year except Thanksgiving, Christmas, Easter and New Year's Day. Our mortgage originators, processors and marketing team goes thru extensive training and keeps their saws sharp, aware of the latest trends, legislation and products. Our objective is to quickly, and competently satisfy the borrower's financing question "Given my requirements - Based on the merits of the Commercial Property and its Debt Service Ratio - How much debt will my project support - and can you do that deal - Within my stated time frame?" No other team gives out their home phone numbers, cell phone numbers or personal e-mail accounts like we do. We make a point of being available to our real estate agents, borrowers and investors, and we have business processes and technologies in place that reflect our vision and commitment to speedy service! The vast array of loan products available in the marketplace, both fixed and variable, are the result of different institutional objectives on behalf of the players - the Lenders/Investors. Lenders will look more favorably on project structures consistent with their 'hold' charter; i.e., for example, if they like short term hold loans, we match them with borrowers that need that type of financing structure to maximizes their project's return. Long term holders might be better served with a Lender that satisfies that model with a different product. We try to match the borrower & lender to the benefit of both.     Our information gathering process on the front end, from both the borrower and the marketplace, lets us perform a desk-top underwriting to determine both the potential loan structure and those current, available sources that might service those requirements. As a part of our packaging the loan for lender review, we engage the process with the borrower for submitting a package we know is in a form acceptable to a particular lender's underwriting requirements. This helps reduce the time necessary to get to funding. Finally, we coordinate the due-diligence efforts of Lender with the borrower and their advisors to close the loan as quickly as possible. We have created far more than a website. We offer professionals, vendors, customers and agents in the real estate and financial services arena the chance to improve their income and offer the kind of networking and business development support that helps our associates to tap their potential. Ask about our Sales And Leadership Training, Talking Loan Officer Signs or FSBO Sales And Marketing Kits. No one helps landlords, investors or first-time borrowers like we do! Whether you are a seasoned investor or just launching your real estate investment endeavors, look to us for Thought Leadership and resources that will save you time and money! Call 440-668-0887 today. We have the knowledge and expertise to properly underwrite and package a loan proposal which generally provides a more cost-effective solution than a Borrower can obtain on their own. We provide access to Loans, Capital (both Equity and Venture), as well as Hard Money from over 1000 lenders to help you get the best financing for your situation. We provide Internet value by using an easy way to apply for and track loan progress. We know and understand your local market and know when its best to use a neighborhood lender or national one. We are a professional organization that is accountable to you to get the job done. InterBay Funding Preferred Partner Status CONTACT US TODAY AT 440.636.3662 Look to Bay Portal Companies for your loan needs... Email us today at bayportalcompanies@gmail.com Need a Stated Program? We Are an InterBay Preferred Partner!!! KEYWORD FOR BAY PORTAL COMPANIES INC: county cuyahoga home loan columbus equity home loan ohio columbus ohio mortgage loan ohio purchase mortgage loan interest only loan ohio ohio small business loan ohio construction loan purchase loan ohio non conforming loan ohio commercial loan ohio home loan toledo ohio ohio loan officer ohio business loan mortgage lender columbus ohio mortgage lender cleveland ohio  mortgage lender toledo ohio mortgage lender akron ohio columbus equity home loan ohio mortgage company columbus ohio mortgage broker cleveland ohio  mortgage lender cleveland ohio ohio purchase mortgage loan eastern ohio mortgage  company local mortgage ohio internet mortgage ohio mortgage broker akron ohio mortgage toledo ohio mortgage company toledo ohio mortgage lender toledo ohio east ohio mortgage mortgage company akron ohio mortgage broker toledo ohio  ohio state mortgage company dayton mortgage broker dayton mortgage dayton mortgage south mortgage lender youngstown  mortgage company youngstown mortgage broker youngstown mortgage company cincinnati  mortgage lender commercial loan commercial loan officer commercial florida loan mortgage florida commercial mortgage broker commercial construction loan florida florida commercial lender  florida construction loan  florida purchase mortgage loan florida loan sba florida va home loan  florida stated income loan central florida home loan florida loan mortgage sarasota tampa florida mortgage loan  commercial florida loan mortgage construction loan in florida florida mortgage loan debt consolidation equity florida home in loan orlando home equity loan tampa florida new home buyer loan florida  south florida mortgage lender florida commercial lender  mortgage lender in south florida south florida mortgage lender miami mortgage program central florida home equity commercial loan miami miami online home loan estate loan orlando real mortgage company in jacksonville florida mortgage broker jacksonville florida refinance key west florida loan mortgage sarasota mortgage broker sarasota tampa florida mortgage loan home equity loan tampa florida commercial mortgage tampa company florida mortgage tampa tampa florida mortgage broker mortgage san jose california broker california home loan mortgage mortgage company san jose california mortgage lender san jose california first time home mortgage california california home loan ventura commercial mortgage broker california california commercial lender Ohio Residential Mortgages USA Commercial Loans Ohio Mortgages for Purchases Ohio Mortgages for Refinancing Mortgage Protection Insurance Ohio Mortgage Pre-approval Ohio Free Loan Consultations Ohio Bankruptcy Ohio Less Than Perfect Credit Mortgages Ohio Construction Loans Ohio Apartment Building Mortgages Ohio Low Mortgage Interest Rates InterBay Funding Lender Met-West Lender Velocity Commercial Lender Interest Only Loans JUMBO Loans Super JUMBO Loans LIBOR Investment Property Commercial Real Estate Commercial Real Estate Loans Bay Portal Companies FSBO Bruce Cobbeldick Underwriting Fast Pre-Approvals Appraisals Home Inspections Property Managers Landlords Residential Conventional Adjustable Rate Mortages ARM Fixed Rate Mortgages For Sale By Owner AKRON, OH AMHERST, OH AUBURN TWP, OH AURORA, OH AVON, OH AVON LAKE, OH BARB, OH BATH, OH BAY VILLAGE, OH BEACHWOOD, OH BEDFORD, OH BEDFORD HEIGHTS, OH BENTLEYVILLE, OH BEREA, OH BERLIN HEIGHTS, OH BEULAH BEACH, OH BIRMINGHAM, OH BLAKE, OH BRADY LAKE, OH BRATENAHL, OH BRECKSVILLE, OH BRIARWOOD BEACH, OH BRIGGS, OH BROADVIEW HEIGHTS, OH BRONSON, OH BROOK PARK, OH BROOKLYN, OH BROOKLYN HEIGHTS, OH BRUNSWICK, OH CEYLON, OH CHATHAM, OH CHESTERLAND, OH CLARKSFIELD, OH CLEVELAND, OH COLLINS, OH COLUMBIA STA, OH CONCORD TWP, OH CUYAHOGA FALLS, OH EASTLAKE, OH ELYRIA, OH EVERETT, OH FITCHVILLE, OH GATES MILLS, OH GRAFTON, OH GRAND RIVER, OH GREENWICH, OH HINCKLEY, OH HOMERVILLE, OH HUDSON, OH KENT, OH KIPTON, OH KIRTLAND, OH LAGRANGE, OH LAKEMORE, OH LITCHFIELD, OH LODI, OH LORAIN, OH MACEDONIA, OH MEDINA, OH MENTOR, OH MILAN, OH MOGADORE, OH MUNROE FALLS, OH NORTH FAIRFIELD, OH NORTH OLMSTED, OH NOVA, OH NOVELTY, OH RICHFIELD, OH RIVER CORNERS, OH ROCHESTER, OH SHARON CENTER, OH STREETSBORO, OH SULLIVAN, OH TALLMADGE, OH TWINSBURG, OH VALLEY CITY, OH WADSWORTH, OH WESTFIELD CENTER, OH WICKLIFFE, OH WILLOUGHBY, OH   We have a wide array of products and a fleet of experts to design home financing solutions to meet your specific needs. Click on the product below to learn more:   100% Home Financing Program 3% Solution® Program Adjustable-Rate Mortgage Easy-to-OwnSM 3% Down Program FHA Mortgage First- and Second-Mortgage Combination Fixed-Rate Mortgage FLEX/FIXED® Program Home Asset ManagementSM Account Interest-Only Feature Intermediate ARMs Jumbo Mortgage Lender Paid Mortgage Insurance (LPMI) Mortgage Express® No Money Down PlusSM Program VA Mortgage Due to various federal, state and local requirements, certain products may not be available in all areas. Other restrictions may apply.               100% Home Financing Program 100% home financing can help you build a lifetime of home-centered financial security without a down payment.. As a first-time homebuyer or a savvy move-up buyer, you may enjoy the financial flexibility of our 100% home financing programs. Our programs are designed to accommodate homebuyers with limited personal savings or who choose not to deplete their personal savings as well as those who have a less-than-perfect credit history. You may be able to buy a home after all. We offer a variety of options to meet your needs and preferences. Best for people who: Don’t want to wait to accumulate a large down payment. Don’t want to deplete personal savings, cash in investments, or use home sale proceeds to fund a down payment. Have past credit problems and little or no cash for a down payment. With 100% home financing programs, the wait for your new home is over!     Return to Top           The 3% Solution® Loan Need greater purchasing power? Strapped for down payment cash? The 3% Solution Loan offers: Increased home affordability By putting only 3% down, you can obtain a larger mortgage. A larger mortgage could translate into a better or bigger home! 3% down payment A low 3% down payment is often associated with "affordable" low- to -moderate income programs. But the 3% Solution loan program doesn't have any income restrictions or first-time homebuyer requirements. Flexible qualifying guidelines Down payment funds can come from personal savings and gifts, as well as loans from sources such as a relative, employer or non-profit organization. Best for: Those with strong current income but not a lot of savings First-time homebuyers whose high rents left them strapped for cash Move-up buyers looking to purchase a larger home without large cash reserves People with higher yielding investments they don't want to liquidate for a down payment Middle-to-high income borrowers who want to benefit from a low down-payment mortgage feature Our 3% Solution loan offers homebuyers an opportunity to purchase a primary residence with a down payment of only 3% of the purchase price. With the 3% Solution loan, you benefit from flexible qualifying guidelines and can use a gift, grant or unsecured loan for down payment and closing costs.   Return to Top           Adjustable-Rate Mortgages Need extra borrowing power? Plan to move or refinance in a few years? Adjustable-Rate Mortgages: Assist borrowers in obtaining a larger loan amount This is possible because qualifications are at a lower interest rate. Save money in the early years Lower initial interest rate than a traditional fixed-rate loan Have a variety of adjustment periods (See Intermediate ARMS) Best for people who: Need extra borrowing power Want to save money in the first few years Plan to move or refinance in a few years Are purchasing or refinancing at a time when interest rates are comparatively high Adjustable-Rate Mortgages (also called ARMs) feature an interest rate that periodically adjusts with changing market rates. ARMs are available in government, conforming and jumbo loan amounts. The ARM allows you to take advantage of lower interest rates in a falling rate environment, and you'll benefit from lower monthly payments. The initial interest rate on an ARM is usually lower than the lifetime interest rate on a fixed-rate mortgage (FRM). ARM interest rates and the degree to which they fluctuate at the end of every adjustment period, are determined by: Index: Published economic indices such as U.S. Treasury Securities or London Inter-Bank Offered Rate (LIBOR) that are used to direct the adjustment. Margin: A fixed percentage (usually two to three percent) that is added to the index at each adjustment period Rate Cap: Typically the maximum amount your rate can increase or decrease per adjustment period (2%) and over the life of the loan (6%). This protects you in case of volatile market swings. * Due to various federal, state and local requirements, certain products may not be available in all areas. Other restrictions may apply. ** For adjustable-rate transactions, rates are subject to increase over the life of the loan.   Return to Top           Easy-to-OwnSM 3% Down Program Need assistance with down payment and closing costs? Need help qualifying for the home you desire? The Easy-to-Own 3% Down program offers: A low down payment of only 3% Down payment assistance programs: funding to help overcome the obstacles faced by low-to-moderate income borrowers Easy qualifying terms: flexible credit guidelines may make it easier for you to qualify to buy a home Best for: First-time homebuyers having trouble saving for the out-of-pocket expenses associated with purchasing a home Borrowers who fall within the HUD median income limits - high cost area exceptions apply Move-up buyers with little equity We are dedicated to increasing homeownership among the nation's low- and moderate-income.   Return to Top           FHA Mortgage Worried about not qualifying for a mortgage loan? Concerned about not having enough of a down payment for a new home? FHA Mortgages offer: Low down payments Minimal cash is needed up front Easy qualifying terms The FHA Home Loan uses relaxed underwriting criteria to evaluate debt and income. These flexible credit guidelines may enable more applicants to qualify for financing. Authorization to get help with costs FHA guidelines allow homebuyers to receive some or all of their down payment and loan fees from relatives. Best for: Homebuyers who have limited savings and/or moderate incomes First-time homebuyers who are concerned about not having enough funds for down payment and closing costs on a new home FHA Mortgages help low-to-moderate-income homebuyers purchase homes with low down payments (approximately 3%) and flexible qualifying guidelines. These loans are insured by the Federal Housing Administration (FHA), which sets loan limits that vary by area. With an FHA mortgage, you can use a gift or unsecured loan for down payment and closing costs. FHA mortgages are available in fixed-rate and adjustable-rate mortgage options. Also, these loans are usually assumable (along with the current interest rate) by the next owner when you sell your home. This is seen as a strong benefit in certain rate environments.   Return to Top           First- and Second-Mortgage Combination Want to avoid the added cost of mortgage insurance? Interested in sidestepping higher jumbo interest rates? Combining a first mortgage plus a home equity loan offers: Cost effective down payment strategy: bypass the added expense of mortgage insurance while making a down payment as low as 5%. Lower interest rate: purchase a larger home with a smaller first mortgage, avoiding the higher interest rate of a jumbo loan. Build equity faster: the home equity loan has a shorter term allowing you to pay it off quicker. Simplicity: one application, one closing, one set of closing costs equals a two-in-one process saving time and reducing fees. Best for: First-time homebuyers trying to save for a large down payment. Move-up buyers with high-yielding investments who would rather use a home equity loan as a down payment instead of liquidating their assets. People delaying the purchase of a home because they are expecting to use a bonus, commission check or inheritance funds toward the down payment. We are all about choices on combining your mortgage and home equity loan.   First Mortgage Home Equity Loan Down payment 80% 10% 10% 80% 15% 5% 75% 20% 5% These combinations are the most popular; however, the first mortgage and home equity product can be used with various combinations in conjunction with a wide array of ARM, Fixed-Rate and Balloon loans. Let us assess your needs and help you choose a loan program that answers your individual needs.   Return to Top           Fixed-Rate Mortgage Do you prefer regular mortgage payments with no surprises? Plan on staying in your home for a long time? Fixed-Rate Mortgages offer: Predictable payments There are fixed monthly payments for the life of the loan. Protection from rising interest rates For the life of the loan-- no matter how high market interest rates go up-- your rate remains the same. Faster equity growth In comparison to other mortgage options such as ARMs and Balloon Mortgages Best for people who: Prefer regular payments with no surprises Are on limited or fixed incomes Plan to stay in their homes a long time Are purchasing or refinancing at a time when interest rates are comparatively low Fixed-rate mortgages (also known as FRMs) offer the same interest rate, monthly principal and interest payment throughout the entire term of the loan. We offer a variety of terms in both government conforming and jumbo loan amounts. The longer the term, the lower the monthly payments and the more cash you'll have for other expenses. With a shorter term, you'll have higher monthly payments and you'll qualify for a smaller loan amount, but you'll save on interest costs over the life of the loan and build your equity faster. The fixed-rate mortgage loan is the "traditional" choice and is still the most popular because it offers stability and predictable monthly payments.   Return to Top           FLEX/FIXED® Program Do you need more purchasing power? Looking to ease into higher monthly payments? The FLEX/FIXED Program offers: Low start rates FLEX/FIXED is a unique program that "buys down" the start rate of the loan, as low as 3% below the established fixed rate. Flexibility More than 1,700 buy-down options at costs less than most other lenders. Options can be used with many mortgage products including FHA/VA and most conventional ARM, balloon and fixed-rate loans. Peace of mind Limits rate adjustments to no more than 1% each year and 3% over the life of the loan. This allows homebuyers to plan ahead and grow into the slight increases in payments over the first few years of the loan. Best for: First-time homebuyers Homebuyers trading up that want to ease into higher monthly payments Those who anticipate increases in future income Sellers or builders who need a tool to move properties (making it easier for potential buyers to qualify) without reducing prices With a FLEX/FIXED mortgage, a homebuyer can benefit from the low start rates associated with Adjustable Rate Mortgage (ARM), and the predictable monthly payments of a Fixed-Rate Mortgage (FRM). The borrower using their own funds or seller contributions "buys down" the interest rate of the loan, reducing the initial interest rate as much as three percent below the established fixed rate. This allows first-time homebuyers and borrowers with high debt-to-income ratios, to start at a low, affordable interest rate.   Return to Top           Home Asset ManagementSM Account Want to manage your home like the asset it is? Want ongoing access to your growing home equity? The Home Asset Management Account allows you to: Access funds with card or checks as needed after closing Get an EquityLine® Platinum card or use the ready-to-write convenience checks you automatically receive. Work with your growing asset without applying for additional loans Increases are regularly reflected in your credit line based on mortgage principal payments and increases in your home value. Set guidelines that suit your needs and your comfort level You can choose to decline - or limit the amount of - any increase to your line of credit. Plan for life events and make informed financial choices Detailed quarterly reports track your current equity; annual reports define and illustrate any increase in your home asset position. Factor potential savings into your financial plan Unlike credit cards or other installment loans, the interest you pay on your home equity line is usually tax-deductible*. Convert all or part of your available equity to a fixed-rate loan You pick the right time. You decide on the amount. And you pick a pay-off schedule that fits your monthly budget and is in line with your goals. Best for people who: Desire the financial control and flexibility that comes with ongoing access to home equity. Want a credit line that regularly reflects equity increases, giving them access to their home equity as it grows. Prefer to finance major expenses using a tax-smart alternative to installment loans.* The Wells Fargo Home Asset Management Account combines a first mortgage with a home equity line, allowing you to manage your personal finances like never before. Part or all of your down payment - equity, if you're refinancing - is used to establish an available line of credit that changes as you build equity in your home. As you pay your mortgage, and as your home's estimated value appreciates, the equity increases are reflected in your credit line, as long as you've maintained good credit and made timely mortgage payments. You can access your equity line whenever you need it, without the hassle of applying for additional loans. Contact me for details. *Consult your tax advisor regarding the deductibility of interest. Home equity loans and home equity lines of credit are available through Wells Fargo Home Equity, a division of Wells Fargo Bank, N.A. Home equity loans and lines of credit are not offered on property located in Texas.   Return to Top           Interest-Only Feature Rather invest your money in high-yield and tax-deferred savings? Need extra cash to pay off high-interest, non-tax-deductible consumer debt? The Interest-Only feature offers: Reduced monthly payments With our Interest-Only feature, your monthly payment consists of interest alone for the first five or seven years. This increases your cash flow — making homeownership more affordable. Financial diversity Redirect your cash flow to supplement your savings or investment funds, maximize your contributions to 401k or other tax-deferred retirement accounts, or pay off any higher-cost, non-tax-deductible debt. It's your money to use as you see fit. Greater tax deductions Because payments are interest-only, you may benefit from larger interest deductions during the interest only period.* Flexibility You are welcome to make principal payments during the "interest only" period, but are not required to do so. Best for people who: Are very focused on money management Want to reduce their monthly mortgage payment Do not intend to be in their homes more than a few years With our 5/1 and 7/1 Interest-Only Adjustable Rate Mortgages** (ARMs), your monthly payment consists of interest alone, with no principal, for the first five or seven years. Lower payments mean increased cash flow each month. So you can enjoy the benefits of homeownership today, while still funding your plans for tomorrow.   * Consult your tax advisor regarding the deductibility of interest. ** Fixed rate for the first five or seven years, then becomes a one-year ARM.   Return to Top           Intermediate ARMs Plan on being in your home 10 years or less? Need a lower rate to qualify for the house you desire? Intermediate ARMs offer: Low introductory rate Net substantial savings with attractively priced 3/1, 5/1, 7/1 and 10/1 ARM options. Predictable monthly payments Intermediate ARM options are offered at a low introductory rate that remains fixed for the first three, five, seven or ten years. Low down payment Less up-front cash is needed, because our 3/1, 5/1, 7/1 and 10/1 ARM options have down payment requirements as low as 5%. Best for people who: Plan to stay in their homes for a limited time. Need lower initial payments to buy a home they might not otherwise be able to afford. Are confident their future incomes will rise enough to handle potentially higher monthly payments. Intermediate ARMs offer the low introductory rate of an adjustable rate mortgage combined with the security of a fixed-rate mortgage for a defined number of years. We offer several intermediate ARMs with down payment options as low as 5% and competitive rates that could help borrowers save thousands of dollars over the life of the loan. Also, the intermediate ARM is available in both conforming and non-conforming loan amounts. * Due to various federal, state and local requirements, certain products may not be available in all areas. Other restrictions may apply. ** For adjustable-rate transactions, rates are subject to increase over the life of the loan.   Return to Top           Jumbo Mortgage Do you need to borrow more than $359,650? Interested in leveraging your assets more effectively? Jumbo Mortgages offer: Larger loan amounts to purchase more expensive homes Loan amounts as high as $1 million and down payments as low as 5% Jumbo Mortgages facilitate high-end purchases of: Primary residences Second or vacation homes Investment properties Best for people who: Want to finance larger and/or more expensive properties and can handle larger monthly payments Investment-minded buyers who want to leverage their assets more effectively Currently a jumbo mortgage is a purchase or refinance loan that exceeds $359,650 for a single-family home.* It is also called a non-conforming loan because it does not conform to the loan limits set by Fannie Mae (The Federal National Mortgage Association or FNMA) or Freddie Mac (The Federal Home Loan Mortgage Corp. or FHMLC). Jumbo financing options include fixed-rate and adjustable-rate mortgages, with a range of terms to accommodate immediate and long-range financial plans. *Except in Hawaii and Alaska, where the limit is $539,475 for a single-family home.   Return to Top           Lender Paid Mortgage Insurance (LPMI) Interested in avoiding mortgage insurance, even if your down payment is less than 20%? Curious about how you can reduce your monthly payments? Lender Paid Mortgage Insurance offers: Lower monthly payment It's cheaper each month than traditional mortgage insurance Larger tax deduction* Gives borrowers a bigger tax-deduction* because of the slightly higher interest rate (more savings) Best for people who: Have a down payment or equity of less than 15% Have a 20-, 25- or 30-year term mortgage Will most likely move or refinance in 10 years or less Want to reduce their monthly payments Want the largest tax deduction possible* Mortgage insurance is necessary if you put down less than 20% on a home. With Lender Paid Mortgage Insurance (LPMI), the cost of the mortgage insurance is included in the interest rate. Although the interest rate is slightly higher with LPMI, this option usually results in a lower monthly payment and a larger tax deduction.* This adds up to considerable savings when compared to other mortgage insurance options. * Only a tax professional can offer advice on the extent to which interest on a loan with LPMI is deductible.   Return to Top           Mortgage Express® You've built a strong credit rating. Now you can reap the rewards of your demonstrated financial responsibility with convenient, streamlined financing from Mortgage Express, our reduced-paperwork option. Mortgage Express offers: Convenience. There's no need to hunt for tax returns, bank statements or pay stubs. Simply state your income and assets on your application. Speed. Your application won't be delayed by paperwork and, in most cases, we can provide an immeidate decision. Simiplicity. You'll be in your home faster with a reduced paperwork process. Flexibility. This home financing option is available for purchase, refinance, or new construction of single-family, owner-occupied properties with a wide range of fixed and adjustable-rate mortgage products. Security. You'll have the peace of mind of knowing that your home financing needs have been met. Best for: Customers with good to excellent credit ratings.* Self-employed and commissioned customers with a proven ability to manage personal credit. If you have steady income and a proven ability to manage credit, Mortgage Express could be the home financing solution for you. Spend your time shopping for a home, not applying for financing! *Since this loan does not require the information and documents traditionally used for mortgage qualification, you may have a higher Annual Percentage Rate or interest rate than a traditional mortgage program, depending on the details of your loan.   Return to Top           No Money Down PlusSM Program Interested in buying a house with no down payment? No Money Down Plus offers: 103% Financing Finance the entire purchase price of the property, plus closing costs and prepaids. Financing Options Choose from fixed- and adjustable-rate financing options. Special Qualification Guidelines There are no maximum income restrictions and additional costs can come from a gift or other source. Best for people who: Have good credit but not a lot of savings Are first-time homebuyers having trouble saving for a down payment Are move-up buyers looking to purchase a larger home without large cash reserves Have higher-return investments they don't want to deplete for a down payment The No Money Down Plus loan allows borrowers with good credit to finance 100% of the purchase price (or appraised value, whichever is lower) of a new home with no money down up to a maximum of $485,437. Plus, you can use your mortgage to finance closing costs, up to a maximum loan amount of $500,000 and a maximum loan-to-value ration of 103%. It's a smart choice for buyers whose savings are limited or for those who prefer to invest their money in other assets. With a No Money Down Plus loan, the wait for your new home is over!   Return to Top           VA Mortgage Are you a Veteran? Do you have limited funds for down payment and closing costs? The VA Mortgage offers: No down payment Easy qualification with regard to credit and income Out of pocket expenses can come from a gift No monthly insurance requirement Best for people who are: Qualified veterans, reservists, active servicemen and women and their spouses (check with your regional VA office to see if you are eligible) Eligible borrowers who have limited funds for down payment and closing costs VA mortgages offer the opportunity to buy a home up to a specified amount with no down payment. These loans are administered by the Department of Veterans Affairs. VA loans are assumable and have more flexible requirements than either FHA or conventional (not government insured) home loans. Available in fixed-rate mortgage options. We do full-doc commercial loans through a host of different lenders including Bayview: <see below> CALL US AT (440) 668-0887 FOR FULL DOC AND STATED PROGRAMS!   Bayview Financial is a full-service real estate investment and mortgage finance company that specializes in meeting the needs of real estate investors, mortgage companies, banks, savings institutions, and loan and securities brokers. We provide our customers with a wide array of products and services, including the origination of small-balance commercial real estate loans, the purchase of residential and commercial real estate loans, the investment in and development of commercial real estate, and the delivery of 1031 exchange services to real estate investors. We source our business through a network of thousands of financial institutions, mortgage companies, third-party brokers and advisors throughout the country. We are a privately held firm, headquartered in Miami and owned by our management and the Allstate Insurance Company. We believe that our status as a private company gives us both business flexibility and long-term focus traits that help to drive our success. What's more, since we are dedicated to using our own capital to make long-term investments for our portfolios, we employ a highly disciplined approach to underwriting, quality control and loss mitigation. For more than 20 years, we have demonstrated the value of these characteristics by differentiating Bayview Financial in a crowded marketplace and generating tangible benefits for our clients. REALTORS AND BORROWERS, CLICK HERETO INQUIRE ABOUT YOUR LOAN'S STATUS  AS COMMERCIAL MORTGAGE BANKERS, LICENSED RESIDENTIAL LOAN OFFICERS, WE OFFER WALL STREET MONEY, BANK LOANS AND HARD MONEY LOANS NATIONWIDE! LOOK TO US FOR THE KIND OF SERVICE, RATES AND FEES THAT MAKE SENSE AND SAVE YOU REAL MONEY! AS THE SENIOR MORTGAGE PLANNER HERE, I GUARANTEE RETURNED PHONE CALLS WITHIN THE HOUR, LOW FEES AND NO DELAYS! CALL US WITH YOUR SCENARIO AT 440-668-0887. *TO PROCESS YOUR APP, WE NEED TO RUN YOUR CREDIT AND REVIEW YOUR 1003 FORM. You can create the 1003 Application by printing it out or filling out our online web-based form! Email Loan Officer, Bruce Cobbeldick CLICK HERE Email Loan Officer, Ken Tonegato CLICK HERE We process Commercial Loans, Residential Loans and Hard Money Loans Nationwide. Whether you need Stated or Full-Doc, Balloon or Fully Amoritized!Our Service Level Agreements Are Revolutionizing Real Estate Finance! We offer innovative ways to get the information and LOAN you need F-A-S-T! E-mail your scenario to cobbeldick@comcast.netFax your application to 440-250-8889. Open 7 days a week, WE ANSWER YOUR CALL! Loan To Value Ratio (LTV) The loan-to-value (LTV) ratio is probably the most important of the 3 underwriting ratios. The loan-to-value ratio is defined as: LTV Ratio = Total Loan Balances (1st mtg+2nd mtg +3rd mtg) / Fair Market Value of the Property First let's look at the numerator. If the borrower is only applying for a first mortgage, and there will be no other loans on the property, then the beginning balance of the new loan requested should be inserted in the numerator. However, if the borrower is applying for a second mortgage, then the "underwriter" (the person who determines whether or not the loan qualifies) should insert the sum of the first and second mortgages in the numerator. Similiarly, if the borrower is applying for a third mortgage, then the underwriter should insert the sum of the first, second and third mortgages into the numerator. When the borrower is applying for a second or third mortgage, the loan-to-value ratio is often known as the combined loan-to-value ratio (CLTV ratio). Now let's look at the denominator. Generally the fair market value of a property is determined by an appraisal. There is one important exception, however. When the proceeds of a mortgage loan are used to buy the same property that is securing the loan, then that mortgage is known as a "purchase money loan." If the appraisal comes in lower than the purchase price in a "purchase money" transaction, then the lender will use the LOWER of the purchase price or appraisal. Mortgage brokers are often asked by real estate agents and buyers to base their loan on the appraised value rather than the purchase price. Their claim is that they have negotiated a super deal and that the property is worth much more than what they are paying for it. This may be so (although generally untrue), but lenders always base their maximum loan on the lower of purchase price or appraisal. The lender's argument (its their money, so there is really very little argument) is that an appraisal is really no more than an estimate of fair market value, no matter how competent or conscientious the appraiser may be. The only true indicator of value is the marketplace in which "a willing buyer and a willing seller, each in full knowledge of the salient facts, and neither under undue pressure, agree upon terms." If the property sells for "X," then it is probably only worth "X." Debt Ratios When analyzing the personal budget of a borrower, lenders use two different debt ratios to determine if the borrower can afford his obligations. These two debt ratios are: Top Debt Ratio Bottom Debt Ratio The "top" debt ratio is defined as: Top Debt Ratio = Monthly Housing Expense/Gross Monthly Income By "monthly housing expense" we mean either the borrower's monthly rent payments, or if she owns her own home, the total of the following - Monthly Housing Expense 1st mortgage payment on home plus Real estate taxes (annual cost/12) plus Fire insurance (annual cost/12) plus Homeowner's association dues(if home is a condo or townhouse) plus Second mortgage payment (if any) plus Third mortgage payment (if any). You will often hear the term P.I.T.I. It refers to (P)rincipal, (I)nterest, (T)axes and (I)nsurance. While P.I.T.I. is not exactly the same as Monthly Housing Expense because it does not include homeowner's association dues, the two terms are often used interchangably. Lenders have learned over the years that a borrower's "top" debt ratio should not exceed 25%. In other words, a person's housing expense should not exceed 1/4 of his income. While lenders will often stretch this number to as high as 28%, traditional lending theory maintains that anyone with a debt ratio in excess of 25% stands a good chance of developing budget problems. The second ratio that lenders use to determine if a borrower can afford her obligations is the "bottom" debt ratio. It is defined as follows: Bottom Debt Ratio = (Total Housing Expense + Debt Payments)/Gross Monthly Income The only difference between the two ratios is the inclusion in the numerator of "debt payments." Debt payments include the following: Debt Payments Car payments Charge card payments Payments on installment loans, for example - a payment on a washer & dryer that the borrower purchased. Payments on personal loans, for example - a signature loan from the borrower's bank. What is not included in "debt payments" is Utilities such as PG&E, water or telephone and payments on real estate loans. Real estate loans are usually offset first by the net rental income from the property. If the borrower has a net positive cash flow from all his rentals, then the net income is usually added to his "gross monthly income." If the borrower has a net negative cash flow from all of his rental properties, then the amount of the negative cash flow is usually added to the numerator of the "bottom" debt ratio as if it were a monthly debt obligation, like a car payment. Traditional lending theory maintains that a borrower's "bottom" debt ratio should not exceed 33 1/3%. In other words, the total of the borrower's housing expense and debt obligations should not exceed 1/3 of his income. Lenders often will stretch on this ratio to as high as 36%, and some have even been known to stretch as high as 40% or more. Obviously a loan with a debt ratio of 40% is a far more risky loan than a loan with a debt ratio of 32%. VENTURE CAPITAL REAL ESTATE VENTURE CAPITAL START-UP BUSINESS LOAN LOAN FOR STARTING A BUSINESS FIRST TIME BUSINESS LOAN COMMERCIAL PROPERTY LOAN BUSINESS LOAN ACQUISITION FINANCING BRIDGE LOANS (REAL ESTATE) REVOLVING CREDIT LINES CASH-FLOW SALES INVENTORY LOANS CONSTRUCTION FINANCING LETTER OF CREDIT FINANCING UNSECURED COMMERCIAL LOANS GOVERNMENT (SBA) LOANS MEZZANINE FINANCING ACCOUNTS RECEIVABLE FACTORING ACCOUNTS RECEIVABLE FINANCING SALE-LEASEBACK FINANCING ASSET-BASED FINANCING PURCHASE ORDER FINANCING EQUIPMENT LEASING ANGEL INVESTORS/EQUITY PARTICIPATION DIP and EXIT FINANCING

Interbay Funding Bayview Financial FAQ Q: Which of my clients should I consider for an InterBay loan? Q: What type of income verification do you require? Q: Can you finance environmentally sensitive property types such as auto repair shops and dry cleaners? Q: What is the InterBay “borrower’s profile?” Q: Who is my primary contact at InterBay? Q: Which of my clients should I consider for an InterBay loan? A. Perfect candidates for an InterBay loan are those who need financing for an income-producing or commercial property, but are unable to qualify for traditional bank financing because they’re unable or unwilling to verify income or assets. Here are clients you should consider: Business owners who want to take cash out of their property Entrepreneurs and self-employed people who want to purchase a site for their business Real estate investors who wish to put as little as 10% down (InterBay allows CLTVs up to 90%) Q: What type of income verification do you require? A. Unlike banks and other conventional lenders that verify the borrower’s personal income, we can pre-approve your clients with a completed application that simply states the borrower’s income and assets. The only income verification required is on the property being financed. We require rent rolls and leases on properties with more than four units certified by the borrower. Our easy stated income/stated asset process allows your self-employed clients who cannot verify all of their income to qualify for financing through InterBay. Q: Can you finance environmentally sensitive property types such as auto repair shops? A. Yes, but the owner may need to complete an environmental questionnaire that must be submitted with the loan package. The information is reviewed by an insurance company in order to determine whether or not the property poses an environmental risk. The cost of the premium varies depending on the loan amount and property type. The cost is approximately the same as a typical Phase I environmental report. By offering this environmental screening process, InterBay can finance riskier properties that many other lenders will not. Q: What is the InterBay “borrower’s profile?” A. One common denominator among all our borrowers is that they have a large amount of real estate equity and an immediate need for short-term capital. They cannot or will not go through the strenuous and time-consuming underwriting process required by conventional lenders. Q: Who is my primary contact at InterBay? A. Although you have a team of people working to help you close your loans, your primary contact is your InterBay loan officer. If you don’t know who your loan officer is, call 440-636-3662.

Mixed use (Apartments & stores) Apartment Buildings (Multi-family) Warehouses Mobile Home Parks Dry Cleaners Self Storage Facilities Retail Strip Malls Light Industrial Automotive Retail Automobile Service New Car Dealerships Hotels and Motels Bed & Breakfast Rooming Houses Assisted Living Facilities Funeral Homes Gas Stations and Service Facilities Car Wash Hard eEquity - Bridge Loans - Short Term Funding Medical and Health Properties Westlake Commercial Loans Avon Lake Commercial Loans Bay Village Commercial Loans Rocky River Commercial Loans North Olmsted Commercial Loans Fairview Park Commercial Loans Cleveland Commercial Loans Vermillion Commercial Loans Amherst Commercial Loans Lorain Commercial Loans Lakewood Commercial Loans Bayview Financial Interbay Funding

Browsing around for that perfect commercial real estate loan? Look no further!  We focus on commercial real estate loans. We can help you find the loan program you need to suit your specific situation.  If you would like to find out more about what Bay Portal Companies can do for you and your business, please click here  Have a great day!  Commercial Real Estate loans in Ohio Bay Portal Companies will help get you a Commercial Real Estate Loan in Ohio - find your county ... Adams, Allen, Ashland, Ashtabula, Athens, Auglaize, Belmont, Brown, Butler, Carroll, Champaign, Clark, Clermont, Clinton, Columbiana, Coshocton, Crawford, Cuyahoga, Darke, Defiance, Delaware, Erie, Fairfield, Fayette, Franklin, Fulton, Gallia, Geauga, Greene, Guernsey, Hamilton, Hancock, Hardin, Harrison, Henry, Highland, Hocking, Holmes, Huron, Jackson, Jefferson, Knox, Lake, Lawrence, Licking, Logan, Lorain, Lucas, Madison, Mahoning, Marion, Medina, Meigs, Mercer, Miami, Monroe, Montgomery, Morgan, Morrow, Muskingum, Noble, Ottawa, Paulding, Perry, Pickaway, Pike, Portage, Preble, Putnam, Richland, Ross, Sandusky, Scioto, Seneca, Shelby, Stark, Summit, Trumbull, Tuscarawas, Union, Van Wert, Vinton, Warren, Washington, Wayne, Williams, Wood, Wyandot,    Bay Portal can help get you a Commercial Real Estate Loan in Ohio - find your city  ... Akron, Alliance, Amelia, Amherst, Archbold, Ashland, Ashtabula, Athens, Aurora, Avon, Avon Lake, Barberton, Barnesville, Batavia, Beachwood, Bedford, Bellaire, Bellbrook, Bellefontaine, Bellevue, Belpre, Berea, Bowling Green, Brecksville, Broadview Heights, Brookville, Brunswick, Bryan, Bucyrus, Burton, Cadiz, Cambridge, Canal Fulton, Canal Winchester, Canfield, Canton, Carrollton, Celina, Chagrin Falls, Chardon, Chesterland, Chillicothe, Cincinnati, Circleville, Cleveland, Cleves, Clyde, Columbia Station, Columbiana, Columbus, Conneaut, Cortland, Coshocton, Cuyahoga Falls, Dayton, Defiance, Delaware, Delphos, Dover, Dublin, East Liverpool, Eaton, Elyria, Englewood, Fairborn, Fairfield, Findlay, Fostoria, Franklin, Fremont, Galion, Gallipolis, Galloway, Geneva, Georgetown, Germantown, Girard, Goshen, Grafton, Granville, Greenfield, Greenville, Grove City, Groveport, Hamilton, Harrison, Hartville, Heath, Hebron, Hilliard, Hillsboro, Holland, Hubbard, Hudson, Huron, Independence, Ironton, Jackson, Jefferson, Johnstown, Kent, Kenton, Lancaster, Lebanon, Lewis Center, Lima, Lisbon, Lockbourne, Logan, London, Lorain, Louisville, Loveland, Madison, Mansfield, Maple Heights, Marietta, Marion, Martins Ferry, Marysville, Mason, Massillon, Maumee, Medina, Mentor, Miamisburg, Middlefield, Middletown, Milford, Millersburg, Minerva, Mogadore, Monroe, Mount Gilead, Mount Vernon, Napoleon, New Albany, New Carlisle, New Lexington, New Philadelphia, Newark, Newton Falls, Niles, North Lima, North Olmsted, North Royalton, Northfield, Norwalk, Novelty, Oak Harbor, Oberlin, Olmsted Falls, Oregon, Orrville, Ottawa, Oxford, Painesville, Pataskala, Paulding, Perrysburg, Pickerington, Piqua, Plain City, Pomeroy, Port Clinton, Portsmouth, Powell, Ravenna, Reynoldsburg, Richfield, Saint Clairsville, Saint Marys, Salem, Sandusky, Shelby, Sidney, Solon, Springboro, Springfield, Steubenville, Stow, Streetsboro, Strongsville, Sunbury, Swanton, Sylvania, Tallmadge, Tiffin, Tipp City, Toledo, Toronto, Troy, Twinsburg, Uhrichsville, Uniontown, Upper Sandusky, Urbana, Van Wert, Vandalia, Vermilion, Wadsworth, Wapakoneta, Warren, Washington Court House, Wauseon, Waverly, Waynesville, Wellington, West Chester, West Union, Westerville, Westlake, Wheelersburg, Wickliffe, Willard, Willoughby, Wilmington, Wooster, Xenia, Yellow Springs, Youngstown, Zanesville,    These are some of the common business types can we do Commercial Real Estate Loans for  ... Auto Rental Yards, Auto Service, Bed and Breakfast, Building and Construction Loans, Car Wash, Church Buildings, Combination of Commercial and Residential, Day Care, Funeral Homes, Hotel and Motel, Light Industrial, Mobile Home Park, Multi-Family 5+ Units, Non allowed building types, Office, Restaurant, Retail Sales, Self Storage, Warehouse,    Some of the common keywords associated with Commercial Real Estate Loans   100 commercial loan, 100 commercial mortgage, 100 financing commercial loan, 100 ltv commercial loan, acquire commercial lender mortgage, advance cash commercial loan, affiliate commercial mortgage program, American commercial mortgage, amortization commercial loan schedule, apartment commercial loan, apartment construction lender, apartment loans, apartment mortgage, application commercial form loan, bad credit commercial loan, bank commercial Europe gmac mortgage, bank commercial fleet mortgage, bank commercial loan, become broker commercial mortgage, best commercial mortgage, best commercial mortgage rate, broker commercial loan mortgage, business commercial finance mortgage, buyer of commercial mortgage note, calculate commercial mortgage payment, calculator commercial loan mortgage, commercial balloon loan, commercial boat loan, commercial bridge loan, commercial building loan, commercial business loan, commercial company federal mortgage, commercial company loan, commercial construction estate loan real, commercial construction loan, commercial construction loan company, commercial doc loan no, commercial equity loan commercial down loan money no, commercial estate loan real small, commercial fargo loan well, commercial fargo mortgage well, commercial federal loan savings, commercial federal mortgage, commercial federal mortgage corp., commercial federal mortgage corporation, commercial fixed rate mortgage, commercial form loan, commercial hard money loan, commercial hard money mortgage, commercial hotel loan, commercial income loan stated, commercial income mortgage stated, commercial industrial loan, commercial information loan, commercial insight mortgage, commercial insurance lender mortgage, commercial investment mortgage, commercial land loan, commercial lenders, Commercial loan, commercial loan amortization, commercial loan application, commercial loan broker, commercial loan calculator, commercial loan document, commercial loan documentation, commercial loan financing, commercial loan for a church, commercial loan interest rate, commercial loan lead, commercial loan lender, commercial loan mortgage originator, commercial loan mutual Washington, commercial loan officer, commercial loan pricing, commercial loan process, commercial loan rate, commercial loan rates, commercial loan refinancing, commercial loan underwritings commercial loan, commercial loan wholesale, commercial loans, commercial mortgage, commercial mortgage alert, commercial mortgage backed securities, commercial mortgage bank, commercial mortgage banker, commercial mortgage banking, commercial mortgage broker, commercial mortgage calculator, commercial mortgage company, commercial mortgage direct lender, commercial mortgage finance, commercial mortgage financing, commercial mortgage interest rate, commercial mortgage lead, commercial mortgage lender, commercial mortgage lenders., commercial mortgage lending, commercial mortgage loan, commercial mortgage loan online, commercial mortgage loan rate, commercial mortgage loans, commercial mortgage non recourse rate, commercial mortgage program, commercial mortgage property rate, commercial mortgage provider, commercial mortgage quote, commercial mortgage rate, commercial mortgage rates, commercial mortgage refinance, commercial mortgage request form, commercial mortgage residential, commercial mortgage securities association, commercial mortgage training, commercial mortgage underwriting, commercial mortgage wholesale, commercial mortgages, commercial property loan, commercial property loan rate, commercial property loans, commercial property mortgage, commercial real estate loan, commercial real estate loan rate, commercial real estate loans, commercial real estate mortgage, commercial real estate mortgage broker, commercial real estate mortgage rate, commercial second mortgage, construction loan, current commercial mortgage rate, debt coverage ratio commercial mortgage, first commercial mortgage, fixed commercial loan rate, franchise commercial loan, gmac commercial mortgage, gmac commercial mortgage corp, gmac commercial mortgage corporation, interest only commercial loan, interest only commercial mortgage, international commercial loan, key commercial mortgage, large balance commercial loan, large commercial loan, mortgage lender commercial loan, mortgage loans, mortgage rates, mortgages, refinance commercial loan, small balance commercial loan, small business commercial loan, small commercial loan, small commercial mortgage, to be contacted by a commercial mortgage loan officer, unsecured commercial loan, wholesale mortgage lender commercial,    Some of the common loan types associated with Commercial Real Estate Loans Acquire or Expand a Business, Acquisition and Development Project, Adult Care, Apartment Complexes, Apartments 5+ Units, Asset Financing, Asset Leasing, Automotive Repair Shop, Bars, Bed and Breakfast Inn, Boutique Hotel, Boutique Motel, Bridge and Private Money, Cocktail Lounge, Equipment Financing, Equipment Leasing, Gas Station, Hard Money Financing Programs, Large Balance Commercial, Mezzanine Financing Programs, Mobile Home Park, Motel, Multi Family Units, Nursing Home, Office Complex Funding, Office Financing Programs, Purchase, Restaurant, Self Storage Unit, Small Balance Commercial, Special Use Hotel, Stated Assets., Stated Income Financing

LET US FUND YOUR LOAN F-A-S-T.  CALL US TODAY!   RENTING vs. OWNING... Should You Rent or Buy a Home? The advantages of buying a home compared to renting a home are abundant: Owning a house, as opposed to renting, is not only benefitting financially, but it also gives you a place to really call home. Obviously, it presents you with the responsibility to maintain your own property, but it also gives you the freedom to do as you wish with the property. In most cases, the money a landlord spends on rent can deferentiate depending upon the amount a homeowner spends on a mortgage. However these elements seem incomparable when you consider tax deductions, the many benefits you receive when owning your own home, and the real savings offered. A monthly mortgage payment in many cases is fixed during the life of the loan, while your monthly rent may increase at your landlords will or at minimum along with inflation. New home buyers should also consider appreciation (the dollar value increases your home value over time). Over the life of your home ownership, your new home may appreciate tens of thousands of dollars which will eventually become yours when you sell it! Landlords take a percentage of your monthly rent payment to pay for their own mortgage along with the other expenses that they incur while maintaining the rental. Don't forget they rent the property in order to make a profit, including eventual property appreciation they will gain when they resell the home or apartment. If you purchase a home you pay the expenses incurred to maintain your home, and also gain the in tax savings and property appreciation. Whether to rent or to buy a home is a difficult question. The rewards are more benefitting if you are ready to own your own home. The Internal Revenue Service allows home owners to deduct mortgage interests, property taxes and some of the other expenses incurred in owning your home when filling out their annual tax returns. Home owners also have a tax benefit when they sell their homes: the current tax law allows, in certain cases, the exclusion from taxable income of up to $250,000/person in capital gained from the sale or exchange of the property used as a primary residence. If you currently own a home you should consider selling it first. When you get to the negotiating table for your new home you will be in a stronger position if the new purchase is not contingent on the sale of your current home. Relocating your residency may become stressful, and in order to avoid the pressure and the rush of having to purchase a home you may want to consider renting for a short period of time. Know were your down payment will be coming from. Savings account, sale of current home, or a gift as a source of payment. Don't forget that conventional lenders will only allow you to use 5% of the down payment from a gift. Lenders verify the aging of your deposits to insure that your down payment is not composed of more than 5% gift funding. Finally, consider getting yourself pre-approved for a mortgage. Most home sellers will take an offer more seriously if they know you have already been pre-approved for a mortgage. In fact many realtors won't begin to show you homes until you have a pre-qualification letter from a lender. Have a Question? Click here! return to top of page Finding a Real Estate Agent Real estate agents can offer considerable amount of advantages to your home search. They have access to the Multiple Listing Service (MLS) which lists all of the homes for sale in your area. They may also have some homes available in their agency which have not yet been added to the MLS. With time and money a factor, a real estate agent's experience should be valuable to both. Real estate agents knowing the local market values of other homes that have been recently sold in the area, and the advantages and disadvantages of the home you're selecting will improve your position when negotiating. And at no cost to you the real estate agents commission is built in to the price of the home and paid for from the eventual sale. In the event that you search for a home without an agent, in most cases, you will not save the cost of the agents commission as normally since it's built in to the selling price of the home. Mistakes can be costly and having your own real estate agent can prevent them! There are three types of real estate agents: 1. Seller's Agents - who represent the seller 2. Buyer's Agents - who represent the buyer 3. Dual Agents - represent both buyer and seller Usually real estate commissions range between 5% and 7% and perhaps higher for raw land and commercial properties. Take some time in selecting your real estate agent. Visiting open houses or, asking your friends and relatives if they know of someone they would refer you to are all ways to seek a suitable agent. If you have already selected the area you prefer, you may find that one realtor has a stronger presence in this area compared to another realtor. Once you have targeted a specific agent, ask the real estate agent what area of town they specialize in? How much experience do they have? How many homes they have sold in the last year in your price range? Are they a Realtor? Realtors are members of the National Association of Realtors and have agreed to conform to their code of ethics. Try to find someone you can be open with, as you will need to tell them all of your likes and dislikes when viewing prospective homes. Have a Question? Click here! return to top of page When & Where To Search for Your New Home Homes look their best in the spring and summer therefore prices may be a bit higher. However in the fall and winter when leaves have fallen and gardens are no longer in bloom sellers are generally more flexible when negotiating since they know they will have to wait until spring for their home to look its best. Some think they should wait for mortgage interest rates to drop. However, this plan doesn't always work because home sellers also follow the interest rates and may ask a higher price when they know the lending market is advantageous to the buyer. Remember the more open you are to the areas and plans in a given town this will better your chances to find what you're looking for. Have your agent research the Multiple Listing Service (MLS) based on the specifications you've outlined for your new home. Take a look in real estate books found at the supermarket, the classified ads of the local newspaper, and the internet as many realtors list homes for sale on their websites. Have a Question? Click here! return to top of page   House Hunting Strategy Get a map and select your preferred area of town you're interested in. Look in these areas first and then expand these areas in the event you don't find what you want. Save time by speaking to your agent or the seller before visiting prospective homes. Simple conversation may save you a visit to an inappropriate home. Have your agent give you the addresses of the prospective homes they have found on the MLS and do a drive by. A visual is worth a thousand words and you may save time once you've seen the outside. Viewing the outside may decide whether you are interested enough to tour the inside along with your real estate agent. Express your likes and dislikes to your real estate agent that way they can focus better on your real desires before going forward. If you pay multiple visits to the same home try to go at different times of the day. Things may seem different in the daylight then they would in the evening and vise versa. Try to visit during the week and again on the weekend to see the changing character of the neighborhood. Pay particular attention to noise in the area and don't forget traffic on the street front.   Have a Question? Click here! return to top of page Before And After Negotiating Before beginning negotiations you need to know the local market. Know the selling price for every comparable home in the area over the preceding year, and ask your realtor to prepare a list for you. Don't tell the seller more than you have to! Why you're looking and when you need to move in by can be big negotiating advantages to the seller. This information can be easily given away to the seller by casual friendly conversation. Find out why the home is for sale. How long has it been on the market? How long has the current owner owned the home? How much did they pay for the home? Have they made any improvements? How much does the current owner owe on their mortgage? Who built the home and what is their reputation? Make note of any flaws the home may have and have your realtor insure that they will be remedied. Once the purchase process begins appraisers will visit the home and may point out anything that you may have missed which the seller must remedy prior to the actual sale. Have a Question? Click here! return to top of page Price of The Home Housing prices are different from prices of almost everything else. Many things are factored into the eventual selling price, and the final price is determined by the home seller and buyer. Appraisers can give an estimate of a homes value however, the final price can only be determined by you and the seller. The sellers asking price may not be a good indicator of a homes real value. Some sellers are realistic about the value of their homes and others are not. Some need to sell quickly while others can wait You can make a low offer if you think the selling price is out of line, however you should be prepared to site examples of similar homes which sold for the price you're offering to support your bid. On the other hand if the home is priced low, move quickly before another buyer has an opportunity to put a sales agreement in place. Once you have a sales contract for the home in place the seller is legally bound to sell you the property for the contracted price. However, you aren't bound to pay this price until all of the contract contingencies have been removed. The seller isn't obligated to reduce the price if problems are found during subsequent inspections but you are free to walk away from the deal. Have as many professional inspections done as reasonably possible. The cost of inspections is relatively inexpensive when compared to the savings you may realize by having problems corrected prior to the sale or by reducing the selling price. Have a Question? Click here! return to top of page Factors Beyond Price When buying a home you can negotiate more than just the price. You can include any conditions you consider important, these conditions are called contingencies. Be careful to be reasonable. If your not, the seller may decide not to sell you the home. In your offer you should specify exactly what is being purchased, the home, the fixtures, and the appliances should all be documented in the offer. Specify the amount of your deposit, which is normally refundable if your conditions are not met and the sale does not go through. A financing contingency must be included if you will be getting a loan. Also you should specify that you have the right to perform all reasonable inspections and finally the closing date. A liquidated damages clause allows the seller to keep your deposit in the event you default on the purchase agreement. It doesn't mean the seller can keep your deposit in the event inspections find something that you want corrected, but the seller is unwilling to pay for the correction. The duration of your offer should be for one day maximum two. This prevents the seller from shopping your offer to other potential buyers. Include a home warranty in order to cover any problems you may find after the fact. It's worth the money so you can sleep soundly. Avoid unusual conditions that make your offer less attractive. Often sellers will be accepting of your conditions in the beginning of negotiations, however after the agreement is made they tend to fight over small issue. Have a Question? Click here! return to top of page Tactics for Negotiating with the Seller Buying your home will exercise your patience and will often payoff if you can muster it. If you sense the seller needs to move quickly don't rush. Allow the house to be on the market for a while. The longer the home goes unsold the more pleased the seller will be to finally receive an offer. Be aware though if the house is a great deal it may not stay on the market long and you risk potentially losing the home to another buyer. You can also make your offer immediately. If you move quickly the seller may not have been made other offers that they would consider in conjunction with yours. Your negotiating strength lies in how long the home has been on the market, how quickly the seller needs to sell, and how willing you are to walk away from the home if your offer is not accepted. Don't forget that the seller may likely make a counter offer to your offer if they consider it unacceptable. You can always challenge their counter offer with what you think would be another suitable price. For example, you could ask to have some appliances included if you accept their new price. Have a signed agreement prior to performing any of your inspections in order to avoid spending money on a house you may never purchase. Have a Question? Click here! return to top of page The Basics of Financing a New Home The funds used to purchase a home come from two sources, you and your lender Conventional lenders have two limits on the amount of money they will provide. Loan-To-Value (LTV) limit. This is the amount of money the investor will lend expressed as a percentage of the house's value. LTV varies depending on your credit and employment history, the loan program. Loan Amount Limit. Conforming loans can not be higher than $417,000. Loans higher than this amount are called Jumbo loans and have different programs available than conforming loans. Conforming loans are favored by lenders as they are easily sold on the secondary mortgage market. Mortgage interest rates usually follow the bond market and you should not find large variances in interest rates between one lender and another. Variances appear in the total cost of the loan which includes all of the fees added to the closing cost of the loan. Fees like origination fees, document review fees, and processing fees may vary widely from one lender to the next. In order to properly compare one loan offer to another you will need to have "Good Faith Estimates" from both lenders. This is the only way to compare apples to apples. Lenders prefer borrowers that have a large down payment, income sufficient to make the monthly mortgage payments, a good credit history and credit score, and sufficient cash reserves in the event you fall on hard times. Lenders use two ratios to evaluate your borrowing power. Your front end ratio and your back end ratio. Your front end ratio is the percentage of your income to be used for housing expenses. Your back end ratio is the percentage of your income used to pay all of you monthly reoccurring debts (like car loans, credit cards) including housing expenses. Every lender has different ratios which they consider acceptable. Conforming loans have the guidelines of 28% front end ratio and 36% back end ratio. These ratios are only exceeded when the individual lender considers other factors which may outweigh the exceeded ratio and they believe the loan will be able to be sold on the secondary mortgage market. Lenders can make money from borrowers in three different ways. Origination fees are fees lenders charge to setup the loan. Interest rate spread is the difference between the interest rate the lender offers you, the borrower, and the actual cost of the funds. The lender may also service the loan, in which case they earn a fixed monthly fee for sending notices and collecting payments related to the mortgage. With many lenders you may be able to negotiate on the origination fee and interest rate spread. For example, you may be able get a loan with a 6% interest rate and pay one percentage point origination fee or get a 5.5% loan for two percentage points origination fee. Have a Question? Click here! return to top of page HARD MONEY LOANS Our hard money loans can solve your immediate needs now, even if you've been turned down elsewhere. We know TIME IS OF THE ESSENCE when you need cash fast. Our funding sources can do these loans very quickly. To get started fast you will need to provide an Executive Summary that includes the following information: Complete Contact information Complete description of the Property and the Project Value of Property or Project Amount you wish to borrow Amount of cash or equity you have in the project Additional collateral that you can pledge Complete description of how you plan on using the loan Complete discussion on how you plan on paying off the loan Describe documentation available such as Appraisal, Title Report, Environmental Reports, Financial Statements,Tax returns, Color photos, Pro Formas "Do's & Don'ts for Working with Hard Money Lenders" -The Mortgage Press, February, 1999 Recent economic events internationally and on Wall Street have created a sudden shortage of capital to finance many worthwhile commercial real estate transactions. This has resulted in many borrowers seeking financing from lenders with privately raised and administered capital – sometimes called "hard-money lenders." These lenders fund a wide range of transactions – from local to national; loans from under a million dollars to under $100 million; construction loans to refinancing loans; and more. Most have one major theme in common – we are very busy (particularly lately). We need to review prospective projects quickly; and then speedily but carefully price, quote, finalize and close transactions. The following are some do’s and don’t’s to think about as you undertake a loan with a hard-money lender. DON’T send the lender an enormous pile of disorganized papers. Prepare a short deal synopsis, not more than two pages, which addresses the project and the loan requirements. Back this up with brief financial analyses, a map, photos, information on the borrower, and other supporting documents. Imagine a neat 6 page submission as compared to a 40 page disorganized pile of papers. Which do you think will receive the most attention the quickest? DO describe the transaction: type of real estate project; location of real estate; type of loan; loan amount; equity available and source; term of loan; exit strategy; amount and types of debt that exist on the property; payoff situation; description of the borrower. DON’T ignore or try to hide the "hair" on the deal. This will come out through the due diligence carried out by your lender, and will cast a negative shadow over the deal. If there is "hair" on the deal, a brief overview of the "story," or the events leading up to the story should be included. DON’T tell the story of your life and the project’s entire life at the outset of your submission. Rather, start with the conclusion, the "therefore", (project, loan amount, purpose and term), and then support the "therefore" with the supplemental information you will provide. The details of the "story" will probably come out during a telephone conversation at a later date. DON’T expect your lender to be willing to do your deal unless there is an exit strategy in place. You should identify the exit plan in your initial submission, and be prepared to defend the strategy. Two exit plans are better than one. Your lender is not likely to be interested in not being able to be repaid when your loan matures. DO provide last year’s profit and loss statement showing Net Operating Income (NOI), as well as this year’s year-to-date profit and loss statement. DON’T include mortgage interest and depreciation in the financial or P&L statements. NOI before depreciation and debt service is what the lender will want to see. Don’t make your lender do the arithmetic. DO show actual vacancy information clearly, as well as management fees, reserves for replacement, etc. in the budgets. Assuming there will be no requirement for a management fee since the project is self managed is not useful. In the event of a default, the lender will most likely call in a professional management firm, and the cash flow must allow for this contingency. DO provide a detailed rent roll, (and list each vacancy), list every tenant, lease term, rental rate, passthroughs, etc. Be sure that the numbers are all totaled and add correctly. DO make certain that the total square feet of the rent roll is equal to the total square feet of the building; or the number of units and the number of tenants plus vacancies, are equal, etc. DON’T send a complete appraisal report with the preliminary submission. Rather, copy and send the "Opinion of Value" or "Value Reconciliation" page, (be sure it includes the date) and perhaps the 2 or 3 pages of worksheets that explain how the value was determined. At this point in the deal evaluation, your lender has little interest in the neighborhood characteristics of the town or the largest employers where the property is situated! DO include a page or two from the phase I environmental assessment (including the date), if available. The section showing "Conclusions" is sufficient, plus the cover page or letter of transmittal, showing the name of the firm that carried out the study and the date of the report. DON’T hire an environmental assessment firm or an appraiser, if you don’t already have the reports on file. You will expect your lender to automatically accept your selected third party consultant. Routinely, the lender will prefer to engage one of their own selection, later, if they elect to pursue the deal. DO send along a copy of the local town’s vote(s) on zoning, permits, and other approvals, only if a to-be-built or expansion project, as applicable. Don’t send the entire package of minutes; extract the vote and note clearly the purpose of the particular document. DO include a few select color photographs. Obviously, a picture is worth many words, as well as a locator map, and 81/2 x 11 site plan. DON’T send a full set of architectural and working drawings with your preliminary submission. What do you think your lender will do with another 5 pounds of paper? DON’T send the lender originals. A busy, successful lender, (your preferred source of capital), probably receives dozens of deals every week. Keeping track of them is challenge enough, without being concerned about protecting your valuable originals. Also, returning them, if required, is time consuming and an unnecessary expense to your lender. Finally, you should be aware that it is your risk to send originals with your first submission. DON’T package up a number of different properties into one deal analysis. Each property must be evaluated and stand alone. A consolidated financial analysis and spread sheet will not help the lender to identify and study each property separately. Even if the properties must be consolidated so that the "losing" property is supported by a "winner", each will require its own underwriting. DON’T, at the outset, demand that the lender make a site visit. The lender’s time is of prime importance, and a site visit will not influence the lender to make a loan that is of little interest based on the documents. If the numbers and documents are a fit, the site visit will likely cement the deal, but not until then. DON’T rely solely on your mortgage broker to make the deal. Shortly into the evaluation of the deal, the lender will probably want a direct conversation with the borrower. Offer a 3-way conference call including the lender, borrower and broker fairly early in the transaction based on your lender’s preference, to permit the lender and borrower to evaluate each other’s interest, style and objectives. DON’T permit the mortgage broker to reply to questions directed by the lender to the borrower during telephone conference calls. The lender usually has a specific purpose in inquiring of the borrower, and is expecting the borrower to respond. Failure, or inability, to respond, is as powerful a reply as a timely and detailed response. The broker’s input is valuable when he/she is called upon during such a telephone call, and also to follow-up when appropriate, perhaps later, as the deal develops. DON’T arrange to do a deal with a selected lender until you have completed your initial due diligence on the lender, including the lender’s interests, experience, qualifications, and references. If, after a week or two of negotiations, you then suddenly determine that you are uncomfortable with the selected hard money lender, you have wasted a great deal of time for each of you as well as your borrower, and the lender will not be pleased with this sudden revelation. If the lender resists providing evidence of their ability to make the loan being contemplated fairly early, move on to another who is more cooperative. DON’T expect anyone to provide 100% financing. DO expect to invest between 15% and 25% in cash (or legitimate equity in the property’s value if the property has already been acquired.) You have heard, often enough, that there are no more no-cash deals. DO rely on this rule, particularly in the recent economic climate. DON’T expect the lender to accept the difference between the price you actually paid for a recent acquisition and the appraised value if higher, as your share of equity. From the lender’s perspective, the price you paid in an arms length transaction is the market value, You may believe that you "stole" the property for substantially less than the appraised value. Your lender will probably congratulate you for your accomplishment, but the purchase price will nevertheless be the demonstrated market value. DO expect the lender to recognize an appraised value that is significantly higher than the price you have recently paid for a property, if, and only if, you have successfully completed a significant number of bureaucratic accomplishments since the purchase date (such as obtaining full entitlement), have newly negotiated signed leases, or have physically improved the property, and you can prove it. DON’T expect your lender to lend you operating capital. One of the best ways to demonstrate your capabilities as a developer/operator is to invest your own capital into the project to underwrite startup expenses. And what is the collateral for a business startup? Unless your lender is also your business partner, why should you be loaned the startup money for your own business? DON’T expect your lender to rely solely on your enthusiasm for your deal as the only reason why your project will be a success. DO generate pre-leasing, pre-sales, or other demonstration of marketability. Market studies alone are seldom sufficient. Real prospects will ensure that your lender has serious interest in your project. Akron : Alliance : Amherst : Ashland : Ashtabula : Athens : Austintown : Avon Lake : Barberton : Bay Village : Beachwood : Beavercreek : Bedford : Bedford Heights : Bellefontaine : Berea : Bexley : Blacklick Estates : Blue Ash : Boardman : Bowling Green : Brecksville : Bridgetown North : Broadview Heights : Brooklyn : Brook Park : Brunswick : Bucyrus : Cambridge : Campbell : Canton : Centerville : Chillicothe : Cincinnati : Circleville : Cleveland : Cleveland Heights : Columbus : Conneaut : Coshocton : Cuyahoga Falls : Dayton : Defiance : Delaware : Dover : Dublin : East Cleveland : Eastlake : East Liverpool : Elyria : Englewood : Euclid : Fairborn : Fairfield : Fairview Park : Findlay : Finneytown : Forest Park : Fostoria : Franklin : Fremont : Gahanna : Galion : Garfield Heights : Girard : Greenville : Grove City : Hamilton : Hilliard : Huber Heights : Ironton : Kent : Kettering : Lakewood : Lancaster : Lebanon : Lima : Lorain : Lyndhurst : Mansfield : Maple Heights : Marietta : Marion : Mason : Massillon : Maumee : Mayfield Heights : Medina : Mentor : Miamisburg : Middleburg Heights : Middletown : Mount Vernon : Newark : New Philadelphia : Niles : Northbrook : North Canton : North College Hill : North Olmsted : North Ridgeville : North Royalton : Northview : Norton : Norwalk : Norwood : Oregon : Overlook : Oxford : Painesville : Parma : Parma Heights : Perrysburg : Piqua : Portage Lakes : Portsmouth : Ravenna : Reading : Reynoldsburg : Rocky River : Salem : Sandusky : Seven Hills : Shaker Heights : Sharonville : Shiloh : Sidney : Solon : South Euclid : Springdale : Springfield : Steubenville : Stow : Strongsville : Struthers : Sylvania : Tallmadge : Tiffin : Toledo : Troy : University Heights : Upper Arlington : Urbana : Vandalia : Van Wert : Vermilion : Wadsworth : Warren : Warrensville Heights : Washington : West Carrollton City : Westerville : Westlake : Whitehall : White Oak : Wickliffe : Willoughby : Willowick : Wilmington : Wooster : Worthington : Xenia : Youngstown : Zanesville :

CALL US FOR FULL DOC AND STATED PROGRAMS! Bayview Financial is a full-service real estate investment and mortgage finance company that specializes in meeting the needs of real estate investors, mortgage companies, banks, savings institutions, and loan and securities brokers. We provide our customers with a wide array of products and services, including the origination of small-balance commercial real estate loans, the purchase of residential and commercial real estate loans, the investment in and development of commercial real estate, and the delivery of 1031 exchange services to real estate investors. We source our business through a network of thousands of financial institutions, mortgage companies, third-party brokers and advisors throughout the country. We are a privately held firm, headquartered in Miami and owned by our management and the Allstate Insurance Company. We believe that our status as a private company gives us both business flexibility and long-term focus traits that help to drive our success. What's more, since we are dedicated to using our own capital to make long-term investments for our portfolios, we employ a highly disciplined approach to underwriting, quality control and loss mitigation. For more than 20 years, we have demonstrated the value of these characteristics by differentiating Bayview Financial in a crowded marketplace and generating tangible benefits for our clients. REALTORS AND BORROWERS, CLICK HERETO INQUIRE ABOUT YOUR LOAN'S STATUS  AS COMMERCIAL MORTGAGE BANKERS, LICENSED RESIDENTIAL LOAN OFFICERS, WE OFFER WALL STREET MONEY, BANK LOANS AND HARD MONEY LOANS NATIONWIDE! LOOK TO US FOR THE KIND OF SERVICE, RATES AND FEES THAT MAKE SENSE AND SAVE YOU REAL MONEY! AS THE SENIOR MORTGAGE PLANNER HERE, I GUARANTEE RETURNED PHONE CALLS WITHIN THE HOUR, LOW FEES AND NO DELAYS! CALL US WITH YOUR SCENARIO AT 440-668-0887. *TO PROCESS YOUR APP, WE NEED TO RUN YOUR CREDIT AND REVIEW YOUR 1003 FORM. You can create the 1003 Application by printing it out or filling out our online web-based form! Email Loan Officer, Bruce Cobbeldick CLICK HERE Email Loan Officer, Ken Tonegato CLICK HERE We process Commercial Loans, Residential Loans and Hard Money Loans Nationwide. Whether you need Stated or Full-Doc, Balloon or Fully Amoritized!Our Service Level Agreements Are Revolutionizing Real Estate Finance! We offer innovative ways to get the information and LOAN you need F-A-S-T! Open 7 days a week, WE ANSWER YOUR CALL!   Recent Projects 3.5M Mixed Use 500M Golf Course Community 8M Ford Dealership 3M Apartment Building 8M Strip Mall 40M Development in China We do loans 200k and up... No deal too large! 400+ NATIONWIDE SOURCES POISED AND READY FOR FAST FUNDINGS!!!

Where America's entrepreneurs, investors and finance pro's go for SBA, Commercial Loans, Factoring and Business Loans! FAX YOUR SCENARIO AND DOCS TO 440-250-8889 GET A INTERBAY FUNDING PREFERRED PARTNER WHO ALSO HAS A STABLE OF 9 DIFFERENT COMMERCIAL LENDERS READY TO ASSIST YOU GET PRE-APPROVED AND FUNDED! "Commercial Loans ARE what WE DO!" "Serving Investors, Co-brokers & Borrowers NATIONWIDE Since 2001" *WE CO-BROKER C-LOANS FOR RESIDENTIAL BROKERS! Get pre-approved with just a few clicks of your mouse! This is the easiest Commercial Mortgage Portal you will EVER find. Simply send 3 items... 1003 Form Tri-Merge Loan Submission Form Via Fax or e-mail, we understand TIME TO VALUE! Send your scenario to us via e-mail at cobbeldick@comcast.net TODAY! CALL BRUCE COBBELDICK @  (440)668-0887 InterBay Funding Stated Loans Done Here Also: SBA, Hard Money, Full-Doc, & Factoring too! Why Settle for one funding source that may say, NO? ...Let us work your scenario and offer you OPTIONS!!! *Ask for Bruce Cobbeldick and get a lender who cares about PEOPLE! HELPFUL TIPS FOR YOUR COMMERCIAL LOAN: Begin gathering standard documentation including: rent rolls, financial statements, tax returns, leases,  corporate papers, any recent appraisals, survey, and title policy for the subject property. Update rent roll and leases.  Review leases and rent roll for accurate rental income, dates, unit numbers, etc. Update and bring current interim financial statements. Remember DO NOT ORDER YOUR OWN appraisal. Today's investors and Commercial Lenders mandate ordering their own appraisals as a rule! Choosing the right appraiser is critical. Don't waste your time or money! Submit requested documents in a timely manner. Give accurate descriptions and representations of subject property. Provide any 3rd party documentation early in the loan process such as title policy, insurances, survey, environmental, etc. If the borrowing entity is a corporation, make sure the corporation is active and in good standing, we will check this before we close on any loan. Again, whether you are a co-broker of ours OR a borrower, don't, under any circumstance, engage your own appraiser. our lenders will not except an appraisal that a borrower ordered on their own behalf. We must engage the appraiser. We originate loans through a wide variety of capital market sources and bring a high level of experience and service to every transaction.  We are a full service commercial mortgage wholesaler. Our combination of market knowledge, proven transaction processes, and vast lending resources provides a unique market advantage for our clients. Our loan officers are dedicated to working hand in hand with you, the client, until your request is complete and funded.  We can quickly assess if the loan you are looking for can be done with us. We are an InterBay Funding Preferred Partner! *Get preferred pricing on Stated Program Loans! By combining our streamlined process and the best of Wall Street, we provide clients access to commercial mortgage financing with speed, certainty and efficiency.  Bay Portal Companies works to secure financing for qualified income-producing properties. Bay Portal Companies (BPC) provides a quality analysis relating a borrowers needs to the financing options available in the marketplace today.  We invite you to become better acquainted with who we are and how we conduct our Commercial Mortgage Lending business.  Complete our online loan application or contact one of our loan officers to quickly describe your request. If a loan officer determines your loan request can be met, you will be asked to complete a one page Executive Summary form and an Income and Expense form. If you have completed an online loan application this step may not be necessary. Once we receive the necessary forms, our internal underwriters will review your request and respond with an outline of proposed terms and our fee agreement. By providing our underwriters with a few pieces of key information about your deal we are able to provide you with an outline of proposed terms, often in less than 24 hours. Get started now by completing our online loan application or contacting us. WE DO BUSINESS NATIONWIDE IN ALL 50 STATES! Minimized documentation requirements for f-a-s-t fundings 48-hour pre-approvals, so there is no long wait time Simplified loan approval process via the web or fax Fast closings as compared to banks and other commercial real estate lending alternatives Low fees (no junk fees - our processing fee is just $620)   Fax Just 3 Simple Things to: 440-250-8889 1003 ~ Tri-Merge Credit ~ Loan Submission Form Co-brokering Commercial deals nationwide since 2002. Ask for Monica! Financial Readiness Checklist The following list will help you identify the types of information a banker will need to make an informed decision about your business. Three years income tax and financial statements Year-To-Date Profit & Loss and Balance Statement Personal Finance Statements Projected Cash Flow Statements for next 12 Months Pro Forma for next 12 Months/Length of Loan Federal and State Taxes Information Collateral Sheet Well Written Business Plan *Ask about our New Loan Pipeline Tracking Tool Track the progress of your deals via the web 24/7!  Great for Our Co-brokers and Realtors Nationwide!!! Our real estate department utilizes the appraisal report to assist in the determination of the property value. However, InterBay Real Estate Analysts arrive at a valuation based on their review of the appraisal report and it is the InterBay valuation that is utilized to compute the LTV. All InterBay Funding appraisals are subject to review by InterBay's real estate department. All appraisals are desk reviewed, others are rejected as inadequate. In cases where there are questions concerning the appraisal report, the InterBay real estate department will contact the appraiser for clarification. In many cases, appraisers are able to supply additional information to support their opinion of value, however, it is important to note that this process always delays the review process. InterBay reserves the right to determine that a submitted appraisal is unacceptable. It is important that InterBay Funding appraisers be engaged by InterBay so that they are aware of InterBay's appraisal requirements before the appraisal is started in order to avoid any misunderstandings. Also, appraisers need to make themselves available to the InterBay staff appraisers in order to avoid delays in the appraisal review process. Complete details about our process and requirements will be made available to the appraiser via our Engagement Letter and our Valuation Guidelines. Commercial Appraisal Review Process Appraisal Formats and Contents Appropriate formats and the required contents of each appraisal will be provided to the appraiser via the Engagement Letter and Valuation Guidelines. Some "form" reports are acceptable for specific property types, but Complete Summary narrative reports are more appropriate for most property types. Any questions regarding the format or content of a report will be discussed with InterBay's real estate department before the appraisal process begins. An executed Engagement Letter must be included with each InterBay Funding appraisal, so the appraiser will be aware of our requirements before the assignment is started. Supporting Documents The appraisal should be accompanied by appropriate documentation (i.e. agreement of sale, rent roll, commercial lease, etc.) as described on the Engagement Letter and our Valuation Guidelines. The lack of relevant documents will delay the review process. Effective Dates The effective date of an appraisal must be within six (6) months of the date of closing. Selection of an Appraiser Effective June 1, 2004: InterBay utilizes Mercury Real Estate Services, LLC to select an appraiser for all new assignments from a database of existing appraisers, or by researching an appropriate appraiser. For information on the Engagement Process, a broker should rely on the InterBay Loan Officer or Real Estate Analyst; the Loan Officer has constant access to the Real Estate department. Loan Processing Because InterBay programs are stated income / stated asset, InterBay can close a loan as quickly as an appraisal and title report can be submitted and accepted by InterBay. Generally, InterBay closes loans within 4 weeks of submission. The process depends on the status of the appraisal and title report. The initial submission for pre-approval requires only a completed 1003, broker’s tri-merged credit report with credit scores and the InterBay loan request form. Pre-approvals are generally issued within 48 hours of receipt. The pre-approval is a conditional commitment to fund a loan based solely on the information supplied by the broker and the requirements stipulated in the pre-approval. InterBay utilizes the credit report submitted by the broker to evaluate the applicant’s credit and grade the loan as to price and permitted LTV ratio. InterBay does not run its credit report until the property appraisal has been reviewed and accepted by InterBay. Therefore, any changes in the borrower’s credit standing as reflected by the credit score may result in a change in price and LTV, as well as, denial of the loan. Additional supporting documentation or stipulations contained in the pre-approval must be submitted for underwriting review and acceptance prior to closing. Requests to waive pre-approval stipulations can only be authorized by an underwriter issuing a revised pre-approval form. No oral waiver of stipulations is allowed by any InterBay employee and will not be honored by InterBay under any circumstances. Brokers and applicants need to be aware that InterBay staff appraisers review all appraisals. We recommend that you reference the section on our Appraisal Process for more information. Mortgagor title commitments should be ordered once the appraisal has been approved. InterBay requires that all exceptions contained in Schedule BII of the title report be removed as of the time of closing. No loan can close with exceptions on section BII of the title report without the approval of InterBay’s legal department. Underwriting Process InterBay Funding Pre-approval Underwriting (We also have 9 additional lenders and investors!) Generally, a pre-approval contains all of the conditions necessary to have a loan approved for closing. A completed 1003, tri-merged credit report, and the completed Loan Request Form are required in order to be submitted to underwriting for pre-approval. Income – All InterBay programs are stated income, but the income must be stated by the applicant and included in section VZ of the 1003. No application can be considered complete with this section left blank. No InterBay employee is allowed to complete this section of the 1003 for any reason. InterBay does not verify an applicant’s income and relies solely on the applicant’s statements contained in the 1003 application. Credit – The primary borrower is the applicant stating the highest monthly income on the 1003. InterBay utilizes the credit report submitted by the broker to price and grade the loan for pre-approval. All loans are subject to a credit report ordered by InterBay prior to closing. Any change in the applicant’s credit status as determined by a change in the credit score may cause the loan to be re-priced and the LTV lowered. The loan may also be denied for a serious deterioration of credit quality. Assets - InterBay does not verify an applicant’s assets unless the circumstances of the loan, in the judgment of the underwriter, warrant verification of assets. Applications should have sufficient assets to complete the transaction requested in the application. Employment – InterBay does a verbal verification of employment prior to closing. All self-employed borrowers must have a verifiable business in existence at the time of closing. Licenses – InterBay requires all commercial borrowers and self-employed borrowers to submit copies of current business licenses. Special licenses for automotive properties are required, as well as, properties containing underground tanks. Verification of Mortgage - Verification of mortgage payment history is required in instances where the mortgage is not reported in the tri-merged credit report. In these instances InterBay requires 12 months cancelled checks, bank statements or, if applicable, a completed verification of mortgage. Verification of Rent – Verification of rent may be required based on credit history and loan circumstances. The form of verification must be 12 months cancelled checks. A rental verification form can only be utilized in instances where a management company or institution is collecting the rents. Rent Rolls – Rent rolls are required on all properties that contain 5 or more units and any commercial property that is not 100% owner occupied. The rent roll must be certified by the applicant as to authenticity and properly signed and dated. Estoppel Certificates – Estoppel certificates are required for non-residential properties ( 9+ units & mixed-use are excluded) where one or more tenants each occupy 40% or more of the square footage of the subject property. The tenant executes the estoppel certificate and its purpose is to state the tenant’s understanding of the terms and conditions of the lease. In addition, the estoppel certifies to InterBay that the tenant’s rights of ownership are subordinate to InterBay’s rights as the mortgagee. Surveys – InterBay does not require surveys unless the title underwriter will not remove the survey exception for the title report without a survey. Title Insurance – InterBay reserves the right to accept the title insurer. Title insurers must generally be approved and in good standing with FannieMae and Freddie Mac. Choose between Stated or Full-Doc Commercial Loans. Get bought F-A-S-T Want a full-doc loan? No problem. We go up to 25 million! We work with a host of different Commercial lenders!   Contact: Monica Cobbeldick, Commercial Division, Bay Portal Companies "For small commercial loans, from 100k - 25 million dollars, we reign supreme. I enjoy working with my network of co-brokers and while I keep my stable of Underwriters close to my vest, I enjoy long-term relationships because I know that turnaround time is key, AND I DELIVER!  Because we specialize in Commercial Real Estate we can help when you need to get your loan bought with no delays and no headaches!" - Monica Cobbeldick  To learn more about Monica Cobbeldick,  click here. No one is more personible and we get your loan paperwork processed fast and we use 7 different traditional money sources, Wall Street investors, Hard Money, SBA and even Factoring Sources I keep close to my vest to get you bought F-A-S-T! Get a loan - not lip service! Browse this webpage and find out why Monica Cobbeldick has the reputation of being a valuable resource and Rainmaker in Commercial Real Estate Financing. Contact us today and get your loan bought F-A-S-T with no headaches, no delays and no junk fees! "No Junk Fees. No Delays. No Headaches!" Here are the four (4)  things we need to get your pre-approval signed by an underwriter in just two (2) - three  (3) business days: Tri-Merge Credit Report Commercial Loan Registeration Form 1003 Narrative or Executive Summary (3-4 paragraph overview of your loan) OR YOU CAN FAX YOUR 1003 TO (440) 250-8889 or cobbeldick@comcast.net We offer unique equity financing options for multi-family and commercial properties, specifically for non-traditional borrowers. Our primary focus is to help Investors, Mortgage Brokers and Realtors achieve their financial goals. Our reputation has been built upon obtaining the necessary funding and effectuating successful closings for Commercial Properties presenting a lower and/or higher degree of difficulty. If you are looking for Commercial Mortgage Capital and a Company that is creative, flexible, reliable and with a service oriented structure, look to Bruce Cobbeldick for a mortgage that makes sense and saves you money AND TIME! Small Commercial is our expertise. Savings In addition to saving you hundreds of dollars potentially each month in payments, our loan programs pricing and fees are affordably priced for low closing costs! Selection Hundreds of Loan Programs available to ensure your satisfaction. Speed By using the very latest technology, we can approve our customers for their loan programs within 72 hours. That means faster access to monthly savings. Examples of some of our programs... Our Specialty: Loans from $500,000 to $3.0 Million Focus on "A" borrowers and "A" properties in major metropolitan areas nationwide. Loan Types: Purchase Refinance Cash-out refinance Property Types: Class I: Multifamily & Mixed-use Class II: Office, Retail, Warehouse, Self-storage, Mobile Home Parks DCR: 1.20 for Multifamily 1.25 for Mixed-use 1.30 for Commercial Loan Amount: $500,000 to $3,000,000 Only LTV: Up to 75%. Subordinate financing NOT allowed. Interest Rates: 3 Year and 5 Year Fixed Rate, 6 Month Adjustable available Points: PAR Term: Class I: 30 Year Amortization due in 10 Years Class II: 25 Year Amortization due in 10 Years Program Information: Simple loan documentation Brokers protected No single-tenant or owner occupied properties Minimum FICO score 675 Maximum DTI ratio of 55% TRADITIONAL PROGRAM Our Specialty: Loans from $100,000 to $3.0 Million Nationwide lender Loan Types: Purchase Refinance Cash-Out refinance Property Types: Class I: Multifamily & Mixed-use Class II: Office, Retail, Warehouse, Self-storage, Mobile Home Parks Class III: Light Industrial, Automotive Services (must clear environmental risk parameters) DCR: 1.20 for Multifamily 1.25 for Mixe-use 1.30+ for Commercial Loan Amount: $100,000 to $3,000,000 LTV: Up to 80% Interest Rates: 3, 5, 7 & 10 Year Fixed Rate Points: PAR Term: 30 Year Fully Amortization Program Information: Simple loan documents Brokers protected Will consider other property types on a case-by-case basis Increased Underwriting Flexibility Minimum FICO Score - 600 STATED PROGRAM Our Specialty: Stated Income Loans Up to $3.0 Million Focus on credit score, no tax returns or personal income verification required. Loan Types: Purchase Refinance Cash-out refinance Property Types: Most Property Types Considered Nationwide DCR: 1.20 for Multifamily 1.25 for Mixed-use 1.30+ for Commercial Loan Amount: $100,000 to $3,000,000 LTV: Up to 80% Interest Rates: 3, 5, 7 & 10 Year Fixed Rate options available Points: PAR Term: 15, 20, 25 and 30 year, fully amortizing Program Information: Simple loan documents Brokers protected Impounds required for Taxes & Insurance BRIDGE PROGRAM Our Specialty: Quick close, Private Financing Non-institutional and non-regulated capital More flexible than institutional debt Loan Types: Quick close opportunities Rehab/repositioning Building acquisitions Turnarounds Foreclosures Bankruptcies/workouts Equity cash-out Creative financing Property Types: Most property types in California considered Speed: Closing in 10 days, faster if necessary Loan Amount: $200,000 to $3,000,000 LTV: Up to 75% of reasonable property value Interest rate: Starting at 10% (loans based on WSJ PRIME) Points: Starting at 2% fee Term: Typically one year, extensions available Easy Process: Simple loan documentation No up-front fees Appraisal not always required Brokers protected Need a Stated Income Program? We're InterBay Funding Preferred Partner! Monica Cobbeldick, Commercial Real Estate Specialist InterBay Funding Pre-approval Underwriting (We also have 9 additional lenders and investors!) We offer Stated Income - Stated Asset - No Doc Loans Lending in the Name of Corporations, Trusts or LLC Seller Seconds to 90% CLTV Gifts of Equity No Employment Seasoning No IRS 4506 Requirements Unlimited Cash Out Refinance Inherited Properties with Cash Out Blanket Mortgages FULL DOC CHECKLIST: Three years income tax and financial statements Year-To-Date Profit & Loss and Balance Statement Personal Finance Statements Projected Cash Flow Statements for next 12 Months Pro Forma for next 12 Months/Length of Loan Federal and State Taxes informationrmation Collateral Sheet Well Written Business Plan The second, of my nine lenders makes it simple. Check out this matrix and tell me what product you prefer! Characteristics Express Platinum Platinum Plus C-Source Type of Borrower: A+, A, A- & B Credit "A" Credit Only (640 Min. Fico) "A" Credit Only (680 Min. Fico) Coming Soon  Loan Amounts: From 100k to 1 Million From 100k to 1 Million From 1 Million to 3 Million   Documentation: Stated Income / Stated Asset Flex-Doc's Flex-Doc's Property Types: Multifamily, Mixed-Use, Retail, Offices, Warehouse, Self Store, Mobil Home Park Unique Properties, Hotels, Motels, Restaurants, Taverns, Auto Mechanic Shops, Dry Cleaners, Funeral Homes, Car wash Multifamily, Mixed-Use, Retail, Offices, Warehouse, Self Store, Mobil Home Park Multifamily, Mixed-Use, Retail, Offices, Warehouse, Self Store, Mobil Home Park     InterBay Funding Pre-approval Underwriting (We also have 9 additional lenders and investors!) -Property Types -• Retail, Offices, Warehouses, Self-storage -• 5 Units & Up (Apartments) -• Commercial - Mixed use properties -• Restaurants, Taverns, Hotels, Motels -• Special Purpose/Unique Properties -• Most commercial properties considered! -Program Features -• Seller Seconds -• Gifts of Equity -• No Employment Seasoning -• No IRS 4506 Requirements -• Investor Stated Income-Stated Asset -• Lending in the Name of Corporations, Trusts, or LLC -Credit, Income or Other Challenges -• Bankruptcy or Foreclosure -• Liens, Judgments, Collections (may be waived if not on title) -• Cross Collateralization -Loan Types -• Loan Amounts less than 1,000,000* -• Purchase or Refinance -*Loans amounts over $400,000 may require addtional documentation -Interest Rates and Terms -• Fixed or Adjustable Rates -• 15– to 20– Year Amortization   InterBay Funding Stated Programs AND Full-Doc, Hard Money Loans... Monica Cobbeldick, Bay Village resident, commercial loan originator Our real estate department utilizes the appraisal report to assist in the determination of the property value. However, InterBay Real Estate Analysts arrive at a valuation based on their review of the appraisal report and it is the InterBay valuation that is utilized to compute the LTV. All appraisals are subject to review by InterBay's real estate department. All appraisals are desk reviewed, others are rejected as inadequate. In cases where there are questions concerning the appraisal report, the InterBay real estate department will contact the appraiser for clarification. In many cases, appraisers are able to supply additional information to support their opinion of value, however, it is important to note that this process always delays the review process. InterBay reserves the right to determine that a submitted appraisal is unacceptable. It is important that appraisers be engaged by InterBay so that they are aware of InterBay's appraisal requirements before the appraisal is started in order to avoid any misunderstandings. Also, appraisers need to make themselves available to the InterBay staff appraisers in order to avoid delays in the appraisal review process. Complete details about our process and requirements will be made available to the appraiser via our Engagement Letter and our Valuation Guidelines. Commercial Appraisal Review Process Appraisal Formats and Contents Appropriate formats and the required contents of each appraisal will be provided to the appraiser via the Engagement Letter and Valuation Guidelines. Some "form" reports are acceptable for specific property types, but Complete Summary narrative reports are more appropriate for most property types. Any questions regarding the format or content of a report will be discussed with InterBay's real estate department before the appraisal process begins. An executed Engagement Letter must be included with each appraisal, so the appraiser will be aware of our requirements before the assignment is started. Supporting Documents The appraisal should be accompanied by appropriate documentation (i.e. agreement of sale, rent roll, commercial lease, etc.) as described on the Engagement Letter and our Valuation Guidelines. The lack of relevant documents will delay the review process. Effective Dates The effective date of an appraisal must be within six (6) months of the date of closing. Selection of an Appraiser Effective June 1, 2004: InterBay utilizes Mercury Real Estate Services, LLC to select an appraiser for all new assignments from a database of existing appraisers, or by researching an appropriate appraiser. For information on the Engagement Process, a broker should rely on the InterBay Loan Officer or Real Estate Analyst; the Loan Officer has constant access to the Real Estate department. Loan Processing Because InterBay programs are stated income / stated asset, InterBay can close a loan as quickly as an appraisal and title report can be submitted and accepted by InterBay. Generally, InterBay closes loans within 4 weeks of submission. The process depends on the status of the appraisal and title report. The initial submission for pre-approval requires only a completed 1003, broker’s tri-merged credit report with credit scores and the InterBay loan request form. Pre-approvals are generally issued within 48 hours of receipt. The pre-approval is a conditional commitment to fund a loan based solely on the information supplied by the broker and the requirements stipulated in the pre-approval. InterBay utilizes the credit report submitted by the broker to evaluate the applicant’s credit and grade the loan as to price and permitted LTV ratio. InterBay does not run its credit report until the property appraisal has been reviewed and accepted by InterBay. Therefore, any changes in the borrower’s credit standing as reflected by the credit score may result in a change in price and LTV, as well as, denial of the loan. Additional supporting documentation or stipulations contained in the pre-approval must be submitted for underwriting review and acceptance prior to closing. Requests to waive pre-approval stipulations can only be authorized by an underwriter issuing a revised pre-approval form. No oral waiver of stipulations is allowed by any InterBay employee and will not be honored by InterBay under any circumstances. Brokers and applicants need to be aware that InterBay staff appraisers review all appraisals. We recommend that you reference the section on our Appraisal Process for more information. Mortgagor title commitments should be ordered once the appraisal has been approved. InterBay requires that all exceptions contained in Schedule BII of the title report be removed as of the time of closing. No loan can close with exceptions on section BII of the title report without the approval of InterBay’s legal department. Underwriting Process Pre-approval Underwriting Generally, a pre-approval contains all of the conditions necessary to have a loan approved for closing. A completed 1003, tri-merged credit report, and the completed Loan Request Form are required in order to be submitted to underwriting for pre-approval. Income – All InterBay programs are stated income, but the income must be stated by the applicant and included in section VZ of the 1003. No application can be considered complete with this section left blank. No InterBay employee is allowed to complete this section of the 1003 for any reason. InterBay does not verify an applicant’s income and relies solely on the applicant’s statements contained in the 1003 application. Credit – The primary borrower is the applicant stating the highest monthly income on the 1003. InterBay utilizes the credit report submitted by the broker to price and grade the loan for pre-approval. All loans are subject to a credit report ordered by InterBay prior to closing. Any change in the applicant’s credit status as determined by a change in the credit score may cause the loan to be re-priced and the LTV lowered. The loan may also be denied for a serious deterioration of credit quality. Assets - InterBay does not verify an applicant’s assets unless the circumstances of the loan, in the judgment of the underwriter, warrant verification of assets. Applications should have sufficient assets to complete the transaction requested in the application. Employment – InterBay does a verbal verification of employment prior to closing. All self-employed borrowers must have a verifiable business in existence at the time of closing. Licenses – InterBay requires all commercial borrowers and self-employed borrowers to submit copies of current business licenses. Special licenses for automotive properties are required, as well as, properties containing underground tanks. Verification of Mortgage - Verification of mortgage payment history is required in instances where the mortgage is not reported in the tri-merged credit report. In these instances InterBay requires 12 months cancelled checks, bank statements or, if applicable, a completed verification of mortgage. Verification of Rent – Verification of rent may be required based on credit history and loan circumstances. The form of verification must be 12 months cancelled checks. A rental verification form can only be utilized in instances where a management company or institution is collecting the rents. Rent Rolls – Rent rolls are required on all properties that contain 5 or more units and any commercial property that is not 100% owner occupied. The rent roll must be certified by the applicant as to authenticity and properly signed and dated. Estoppel Certificates – Estoppel certificates are required for non-residential properties ( 9+ units & mixed-use are excluded) where one or more tenants each occupy 40% or more of the square footage of the subject property. The tenant executes the estoppel certificate and its purpose is to state the tenant’s understanding of the terms and conditions of the lease. In addition, the estoppel certifies to InterBay that the tenant’s rights of ownership are subordinate to InterBay’s rights as the mortgagee. Surveys – InterBay does not require surveys unless the title underwriter will not remove the survey exception for the title report without a survey. Title Insurance – InterBay reserves the right to accept the title insurer. Title insurers must generally be approved and in good standing with FannieMae and Freddie Mac. county cuyahoga home loan columbus equity home loan ohio columbus ohio mortgage loan ohio purchase mortgage loan interest only loan ohio ohio small business loan ohio construction loan purchase loan ohio non conforming loan ohio commercial loan ohio home loan toledo ohio ohio loan officer ohio business loan mortgage lender columbus ohio mortgage lender cleveland ohio  mortgage lender toledo ohio mortgage lender akron ohio columbus equity home loan ohio mortgage company columbus ohio mortgage broker cleveland ohio  mortgage lender cleveland ohio ohio purchase mortgage loan eastern ohio mortgage  company local mortgage ohio internet mortgage ohio mortgage broker akron ohio mortgage toledo ohio mortgage company toledo ohio mortgage lender toledo ohio east ohio mortgage mortgage company akron ohio mortgage broker toledo ohio  ohio state mortgage company dayton mortgage broker dayton mortgage dayton mortgage south mortgage lender youngstown  mortgage company youngstown mortgage broker youngstown mortgage company cincinnati  mortgage lender commercial loan commercial loan officer commercial florida loan mortgage florida commercial mortgage broker commercial construction loan florida florida commercial lender  florida construction loan  florida purchase mortgage loan florida loan sba florida va home loan  florida stated income loan central florida home loan florida loan mortgage sarasota tampa florida mortgage loan  commercial florida loan mortgage construction loan in florida florida mortgage loan debt consolidation equity florida home in loan orlando home equity loan tampa florida new home buyer loan florida  south florida mortgage lender florida commercial lender  mortgage lender in south florida south florida mortgage lender miami mortgage program central florida home equity commercial loan miami miami online home loan estate loan orlando real mortgage company in jacksonville florida mortgage broker jacksonville florida refinance key west florida loan mortgage sarasota mortgage broker sarasota tampa florida mortgage loan home equity loan tampa florida commercial mortgage tampa company florida mortgage tampa tampa florida mortgage broker mortgage san jose california broker california home loan mortgage mortgage company san jose california mortgage lender san jose california first time home mortgage california california home loan ventura commercial mortgage broker california california commercial lender InterBay Funding Pre-approval Underwriting (We also have 9 additional lenders and investors!) Ohio Residential Mortgages USA Commercial Loans Ohio Mortgages for Purchases Ohio Mortgages for Refinancing Mortgage Protection Insurance Ohio Mortgage Pre-approval Ohio Free Loan Consultations Ohio Bankruptcy Ohio Less Than Perfect Credit Mortgages Ohio Construction Loans Ohio Apartment Building Mortgages Ohio Low Mortgage Interest Rates InterBay Funding Lender Met-West Lender Velocity Commercial Lender Interest Only Loans JUMBO Loans Super JUMBO Loans LIBOR Investment Property Commercial Real Estate Commercial Real Estate Loans Bay Portal Companies FSBO Bruce Cobbeldick Underwriting Fast Pre-Approvals Appraisals Home Inspections Property Managers Landlords Residential Conventional Adjustable Rate Mortages ARM Fixed Rate Mortgages For Sale By Owner No Hassles No Junk Fees No Application Fees No Better Time to Refinance Call Loan Originator, Monica Cobbeldick at 440-808-8926 today! Home of the No Hassle Loan YOU CAN CLICK, CALL OR FAX US YOUR APPLICATION! HERE IS THE EXPLANATION OF THE 1003 FORM'S SECTIONS FOR YOU: I. Type of Mortgage and Terms of Loan Use the fields in this section to describe the basic type of loan you are looking for. II. Property Information and Purpose of Loan This section allows you to describe the property that this loan will be used to buy. III. Borrower Information This section specifies the personal information of the borrower and the co-borrower (if any). This section must be as complete as possible and specifically include the Social Security Number as most financial records are keyed to this number. IV. Employment Information This section allows you to tell us where you work and whom we may contact to verify employment. V. Monthly Income and Combined Housing Expense Information This worksheet section allows us to calculate how much of your monthly expenses will be tied to your mortgage payments. Each loan program has certain limits within which you must fall to qualify. VI. Assets and Liabilities Use this section to list all of your assets and outstanding debts. This section is fairly important. Your past performance in paying your debts will be major factor in what kind of loan you can qualify for. VII. Details of the Transaction You may leave section blank because it contains information that is not known until the loan is approved and all the fees are finalized. VIII. Declarations This section gives us some other background information on your financial situation that may have a bearing on the transaction. IX. Acknowledgement and Agreement You and the co-borrower (if any) must sign this section.  Your signature(s) verify that the information provided in this application is true and correct as of the date of application. X. Information for Government Monitoring Purposes Information on race and sex is voluntary.  Please read carefully and check the appropriate box. Commercial Underwriting Guidelines Commercial Financing is underwritten on a case by case basis. Every loan application is unique and evaluated on its own merits, but there are a few common criteria lenders look for in commercial loan packages. Financial Analysis A key component in making an underwriting evaluation is the debt coverage ratio. The DCR is defined as the monthly debt compared to the net monthly income of the investment property in question. Using a DCR of 1:1.10 a lender is saying that they are looking for a $1.10 in net income for each $1.00 mortgage payment. Typically they will determine the DCR ratio based on monthly figures, the monthly mortgage payment compared to the monthly net income. The higher the DCR ratio the more conservative the lender. Most lenders will never go below a 1:1 ratio ( a dollar of debt payment per dollar of income generated). Anything less then a 1:1 ratio will result in a negative cash flow situation raising the risk of the loan for the lender. DCR's are set by property type and what a lender perceives the risk to be. Today, apartment properties are considered to be the least risky category of investment lending. As such, lenders are more inclined to use smaller DCR's when evaluating a loan request. Make sure that you are familiar with a lender's DCR policy prior to spending money on an application. Ask them to give you a preliminary review of the investment property that you want to purchase. Information is free, mistakes are not. Loan to Value Unlike residential lending, commercial investment properties are viewed more conservatively. Most lenders will require a minimum of 20% of the purchase price to be paid by the buyer. The remaining 80% can be in the form of a mortgage provided by either bank or mortgage company. Some commercial mortgage lenders will require more than 20% contribution towards the purchase from the buyer. What a bank/lender will do is subject to their appetite and the quality of the buyer and the property. Loan to value is the percentage calculation of the loan amount divided by purchase price. If you know what a lender's LTV requirements are, you can also calculate the loan amount by multiplying the purchase price by the LTV percentage. Keep in mind that the purchase price must also be supported by an appraisal. In the event that the appraisal shows a value less then the purchase price, the lender will use the lower of the two numbers to determine the loan that will be made. Credit Worthiness For businesses less than three years old, personal credit of principals will be evaluated. This may hold true for longer periods of time for tightly held companies. For corporations, business performance and credit ratings will be evaluated with a proven track record. Property Analysis Fair Market Value and Fair Market Rent will be analyzed. Special use property may require additional underwriting. Age, appearance, local market, location, and accessibility are some other factors considered. Commercial LTV Ratio The loan-to-value (LTV) ratio is probably the most important of the 3 underwriting ratios. The loan-to-value ratio is defined as: LTV Ratio = Total Loan Balances (1st mtg+2nd mtg +3rd mtg) / Fair Market Value of the Property First let's look at the numerator. If the borrower is only applying for a first mortgage, and there will be no other loans on the property, then the beginning balance of the new loan requested should be inserted in the numerator. However, if the borrower is applying for a second mortgage, then the "underwriter" (the person who determines whether or not the loan qualifies) should insert the sum of the first and second mortgages in the numerator. Similiarly, if the borrower is applying for a third mortgage, then the underwriter should insert the sum of the first, second and third mortgages into the numerator. When the borrower is applying for a second or third mortgage, the loan-to-value ratio is often known as the combined loan-to-value ratio (CLTV ratio). Now let's look at the denominator. Generally the fair market value of a property is determined by an appraisal. There is one important exception, however. When the proceeds of a mortgage loan are used to buy the same property that is securing the loan, then that mortgage is known as a "purchase money loan." If the appraisal comes in lower than the purchase price in a "purchase money" transaction, then the lender will use the LOWER of the purchase price or appraisal. Mortgage brokers are often asked by real estate agents and buyers to base their loan on the appraised value rather than the purchase price. Their claim is that they have negotiated a super deal and that the property is worth much more than what they are paying for it. This may be so (although generally untrue), but lenders always base their maximum loan on the lower of purchase price or appraisal. The lender's argument (its their money, so there is really very little argument) is that an appraisal is really no more than an estimate of fair market value, no matter how competent or conscientious the appraiser may be. The only true indicator of value is the marketplace in which "a willing buyer and a willing seller, each in full knowledge of the salient facts, and neither under undue pressure, agree upon terms." If the property sells for "X," then it is probably only worth "X." Debt Ratios When analyzing the personal budget of a borrower, lenders use two different debt ratios to determine if the borrower can afford his obligations. These two debt ratios are: Top Debt Ratio Bottom Debt Ratio The "top" debt ratio is defined as: Top Debt Ratio = Monthly Housing Expense/Gross Monthly Income By "monthly housing expense" we mean either the borrower's monthly rent payments, or if she owns her own home, the total of the following - Monthly Housing Expense 1st mortgage payment on home plus Real estate taxes (annual cost/12) plus Fire insurance (annual cost/12) plus Homeowner's association dues(if home is a condo or townhouse) plus Second mortgage payment (if any) plus Third mortgage payment (if any). You will often hear the term P.I.T.I. It refers to (P)rincipal, (I)nterest, (T)axes and (I)nsurance. While P.I.T.I. is not exactly the same as Monthly Housing Expense because it does not include homeowner's association dues, the two terms are often used interchangeably. Lenders have learned over the years that a borrower's "top" debt ratio should not exceed 25%. In other words, a person's housing expense should not exceed 1/4 of his income. While lenders will often stretch this number to as high as 28%, traditional lending theory maintains that anyone with a debt ratio in excess of 25% stands a good chance of developing budget problems. The second ratio that lenders use to determine if a borrower can afford her obligations is the "bottom" debt ratio. It is defined as follows: Bottom Debt Ratio = (Total Housing Expense + Debt Payments)/Gross Monthly Income The only difference between the two ratios is the inclusion in the numerator of "debt payments." Debt payments include the following: Debt Payments Car payments Charge card payments Payments on installment loans, for example - a payment on a washer & dryer that the borrower purchased. Payments on personal loans, for example - a signature loan from the borrower's bank. What is not included in "debt payments" is Utilities such as PG&E, water or telephone and payments on real estate loans. Real estate loans are usually offset first by the net rental income from the property. If the borrower has a net positive cash flow from all his rentals, then the net income is usually added to his "gross monthly income." If the borrower has a net negative cash flow from all of his rental properties, then the amount of the negative cash flow is usually added to the numerator of the "bottom" debt ratio as if it were a monthly debt obligation, like a car payment. Traditional lending theory maintains that a borrower's "bottom" debt ratio should not exceed 33 1/3%. In other words, the total of the borrower's housing expense and debt obligations should not exceed 1/3 of his income. Lenders often will stretch on this ratio to as high as 36%, and some have even been known to stretch as high as 40% or more. Obviously a loan with a debt ratio of 40% is a far more risky loan than a loan with a debt ratio of 32%. Debt Service Coverage Ratio (DSCR) The most important ratio to understand when making income property loans is the debt service coverage ratio. It is defined as: DSCR = Net Operating Income (NOI) / Total Debt Service To understand the ratio it is first necessary to understand the numerator and the denominator. Let's take a look at net operating income (NOI) first. Net operating income is the income from a rental property left over after paying all of the operating expenses: Gross Scheduled Rents $100,000 Less 5% Vacancy & Collection Loss $5,000 ________ Effective Gross Income: $95,000 Less Operating Expenses Real Estate Taxes Insurance Repairs & Maintenance Utilities Management Reserves for Replacement Total Operating Expenses: $30,000 Net Operating Income (NOI) $65,000 Please note that lenders always insist on some sort of vacancy factor regardless of the actual vacancy rate in an area to cover collection loss. In addition lenders always insist on using a management factor of 3-6% of effective gross income, even if the property is owner-managed. Their logic is that they would have to pay for management if they took back the property. Finally, NOTE THAT WE HAVE NOT INCLUDED LOAN PAYMENTS AS AN OPERATING EXPENSE. Next let's look at the denominator, Total Debt Service. This includes the principal and interest payments of all loans on the property, not just the first mortgage. NOTE THAT WE HAVE NOT INCLUDED TAXES AND INSURANCE. They were already accounted for above when we arrived at net operating income (NOI). To calculate the debt service coverage ratio, simply divide the net operating income (NOI) by the mortgage payment(s). For the sake of simplicity, let us assume that there is only one mortgage on the property: $500,000 First Mortgage 11% Interest, 30 years amortized Annual Payment (Debt Service) = $57,139 Then: DSCR = Net Operating Income (NOI) = $65,000 Total Debt Service $57,139 DSCR = 1.14 Obviously the higher the DSCR, the more net operating income is available to service the debt. From a lender's viewpoint it should be clear that they want as high a DSCR as possible. The borrower, on the other hand, wants as large a loan as possible. The larger the loan, the higher the debt service (mortgage payments). If the net operating income stays the same, and the loan size and therefore the debt service increases, then the lower the DSCR will be. Life insurance companies are very conservative and generally require a 1.25 or 1.35 DSCR. This means that their loan-to-value ratios are low. Savings and loans (S&L's) generally only require a 1.20 DSCR, and sometimes will accept a DSCR as low as 1.10. A DSCR of 1.0 is called a break even cash flow. That is because the net operating income (NOI) is just enough to cover the mortgage payments (debt service). A DSCR of less than 1.0 would be a situation where there would actually be a negative cash flow. A DSCR of say .95 would mean that there is only enough net operating income (NOI) to cover 95% of the mortgage payment. This would mean that the borrower would have to come up with cash out of his personal budget every month to keep the project afloat. Generally lenders frown on a negative cash flow. Some lenders will allow a negative cash flow if the loan-to-value ratio is less than around 65%, the borrower has strong outside income such as an electronic engineer, and the size of the negative is small. Lenders rarely allow negative cash flows on loans over $200,000.   The bulk of the energy spent "processing" a loan is merely an attempt to verify the numbers that go into the numerator and denominator of the above 3 ratios. The Loan-To-Value Ratio (LTVR) is defined as follows: Loan-To-Value= Total loan balances (1st mtg+2nd mtg+3rd mtg) / Fair market value (as determined by appraisal) Loan-To-Value Ratios seldom exceed 80% because the lender always want some extra protection against default. The second ratio that lenders use when underwriting a loan is the Debt Ratio. The Debt Ratio compares the amount of bills that the borrower must pay each month to the amount of monthly income he earns. More precisely, the Debt Ratio is defined as: Debt Ratio = Monthly Debt Obligations / Monthly Income Obviously someone whose Debt Ratio is 150% is in trouble. A Debt Ratio of 150% would mean that a borrower's obligations are one and a half times his income. Debt Ratios seldom are allowed to exceed 40% in practice. The final ratio used in lending is the Debt Service Coverage Ratio (DSCR). The Debt Service Coverage Ratio is a sophisticated ratio only used for large loans on income producing properties. It is defined as: Debt Service Coverage Ratio = Net Operating Income / Debt Service Net Operating Income is the income from a rental property after deducting for real estate taxes, fire insurance, repairs, and all other operating expenses; and Debt Service is the mortgage payment on the property. Most lenders insist that this ratio exceed 1.0. A debt service coverage ratio of less than 1.0 would mean that the property did not produce enough net rental income for the owner to make the mortgage payments without supplementing the property from his personal budget. Interest Rate Survey Prequalification Wizard Secure Application Market Snapshot Mortgage Calculators Tax Benefits Calculator Payment Calculator Mortgage Commercial Property Types Listed below is a partial list of properties that require commercial financing.     Multi family     Retail    Garden Apartments Hi-Rise Apartments Mid-Rise Apartments Low/Mod Income Student Apartments Senior Apartments Underlying Coop Regional Enclosed Strip Center Outlet Mall Free Standing Single Tenant Regional Unenclosed     Office     Health Care   Single Tenant Hi-Rise Tower Mid-Rise Office Office Over Retail Congregate Living Nursing Home Rehabilitation Ambulatory Care   Office        Heavy Manufacturing Light Manufacturing Warehouse/Distribution Owner Occupied Multi-Tenant Self Storage Special Purpose Facts on Commercial Lending... (Things my competitors don't want you to know!!!) Typically, to arrange and structure a commercial real estate debt is a complicated procedure especially in the commercial lending area. Traditional Lenders offer high LTV's and comparative rate, but require: • Full documentation (personal taxes and financials) • Large down payment usually 25 to 30% • Strong credit and experience. • Seller carrying a 2nd T.D. are not allowed. • Most loan programs are balloon payments due in 5,7,10 yrs. • Most transactions take from 90 to 120 days to close. • Property requires strong D.S.C.R's . • Environmental studies may be needed (Phase I & II) • Also be prepared for up front fees and others... Hard Money Lenders: • Will finance your property fast • Providing that you pay interest rates between 14 to 16%. • Points from 7 to 10%. • Low LTV's and very short terms typically 1 to 2 years. BUT WE have the Perfect Formula: • Streamline documentation. • Flexible underwriting guidelines. • Comparative rates and terms. • Faster closings.   InterBay Funding Pre-approval Underwriting (We also have 9 additional lenders and investors!) Have the following items available when you apply: Name and address of your employer(s) and copies of your two most recent pay stubs. Copies of your W-2 forms for the past TWO years. If you have income in addition to your salary, and you wish to have it considered, have copies of your federal tax returns for the past two years. If you are self-employed, have copies of your federal tax returns for the past two years, and copies of your company's year-to-date profit & loss statement, along with a balance sheet prepared and signed by an accountant. Name and address of any financial institution(s) where you have accounts, and copies of your three most recent statements. If you already own property, have the name and address of any institution(s) that holds your mortgage(s) on that property, and copies of your recent statements. A signed copy of your deposit receipt or purchase agreement for your new home. An estimate of your outstanding debt, along with account numbers for your credit cards, outstanding loans, mortgages and bank accounts. Any other information that might give a clear picture of your financial situation. During the loan process, you may be required to provide additional information not mentioned above to speed the approval process of your application. Bay Portal Companies, Inc. POC: Monica Cobbeldick Fax your docs to: 440.250.8889 26509 Russell Rd., Bay Village, OH 44140   InterBay Funding Pre-approval Underwriting (We also have 9 additional lenders and investors!) PROGRAM:                       *FULL DOC LOANS   ·          Loan Purpose : Permanent first mortgage loans for Acquisition financings and  refinancing.   ·          Financing Size:  $100,000 – Minimum - can go to 25M!!!                                                                                     $3,000,000 – Maximum                                                                                                 Now go up to              $ 3,000,000 Max CLTV 85%   ·          Terms:             6 Months Adj., 2,3,7,15,20 & 30 Yrs   ·          Amortization:                15, 20 & 30 Years   ·          Loan to Value Ratio:     Up to 80% - Multifamily, Mixed-Use Up to 75%- Office, Retail, Warehouse, Self-storage and Mobile Home Parks.                                      95% CLTV Available   ·          Interest Rate:                Fixed from 2,3,7,15,20 & 30 Years                                                                                     Rates starting at 5.500% Rate Locks Available on all  programs.   ·          Collateral:                     First Mortgage, recourse loans.   ·          Prepayment:               Prepayment Penalty waived after two                                                                                                       years if sold   ·          Funding:                       30 to 45 business days following                                                                                                         execution of Application.   ·          Submission:                  The following documents are                                                     required for our initial review:                               1) MetWest submission form. 2) Credit Report (Minimum FICO of 640)   3) Completed 1003 plus Loan Supplement. 4) Rent Roll, 2 yrs Income & Expense  Statements                                Proposals will be quoted within 72 hours.   Financing Options Credit Lines Under a credit line agreement, the lender supplies a business with funds intended to fill temporary shortages in cash that are brought about by timing differences between outlays and collections. Typically used to finance inventories, receivables, project or contract related work. Short-Term Loans Used for seasonal build-ups of inventory and receivables. Generally re payed in a lump sum at maturity, made on a secured basis and are for a term of a year of less. Asset Based Loans Lender advances funds based on a percentage of your current assets. The loan is used as source of funds for working capital needs. Lender typically takes a security position in the assets owned by the business. Contract Financing Funds are advanced to you as work is performed. Payments by the contracting party are generally made directly to the lender. Factoring Factors actually buy your receivables and rely on their own credit and collection expertise. Essentially, your customers become their customers. Factoring is used by firms who are unable to obtain bank financing. The cost of financing is usually higher than other forms of S-T financing. Term Loans Used to finance your permanent working capital, new equipment, buildings, expansion, refinancing, and acquisitions. Commercial banks are the major source of funding. The term of the loan is based on the useful life of the assets being financed or collaterized. Your projected profitability and cash flow are two key factors lenders consider when making term loans. Equipment and Real Estate Loans Loans are fully secured by the equipment being purchased. Typically banks loan 60-80% of the value of the equipment and is repaid over the life of the equipment. Lenders make long term loans secured by commercial and industrial real estate. The loan is usually made up to 75% of the value of the real estate to be financed. Repayment terms range from 10 to 20 years. Lenders also make second mortgages on real estate. The amount of the second mortgage is based on the appraised market value and the amount of the first mortgage. Leasing Can be accomplished through a bank, leasing or finance company. Your business will be subject to the same type of review as when seeking a loan, specifically cash flow of company, value of lease object and useful life. Lease terms range from 3 to 5 years. At the end of the lease, there are generally 3 options: purchase, renew and return. 3-15 YR Balloon loans Balloon loans offer interest rates that are fixed for a period of years. Typically these loans are pegged to a treasury index. Terms are for 3, 5,7,10 or 15 years. The amortization schedules are generally for 20 or 25 years. When a balloon loan matures at the end of the agreed term, the remaining principle balance outstanding is due at that time. The borrower can pay off the loan by either selling the property or refinancing. Investment property is typically owned for a previously defined period of time. Analyze your investment strategy before securing a balloon. Having to redo a loan is expensive. Adjustable rate loans An Adjustable rate loan will typically fully amortize with no balloon features. These loans may or may not have adjustment caps. The rate is determined by an index plus a margin. The indices used are generally U.S. treasury bond rates. Rates are adjusted at a certain point in time using either the current rate of the index in question or the average of the index for the prior year. In either event, the index used will correspond to the adjustment term. If the loan is a three year adjustable, then the index used should be the three year treasury index. Some adjustable rate loans are fixed for an initial period of years and then will adjust after that period. For example a 5/1 adjustable is fixed for the first five years and there after will adjust each year. The index used will be the one year treasury rate. Please note that commercial lending is not standardized as it relates to programs and to guidelines. Banks must meet certain federal standards, but the index, margin, amortization, term and fees are components that are controlled by the investor based on their risk profit analysis. Remember that this mortgage will be the greatest expense your investment property will be responsible for. As such we recommend that you consult your real estate agent and your loan officer to assist in providing you with all the information needed to make a complete and accurate choice.   Questions to Ask Yourself Are you and your business credit worthy? -Your personal and business credit ratings will be analyzed. What kind of money do you require? -Short, long, intermediate term money or equity capital. How much money do your need? -Present exactly what you need and what it is for. Do you have sufficient collateral? -Your collateral must equal the loan amount at a minimum. What are the Lender's rules? -Ask about Loan to Value's and Debt Coverage Ratios. What kinds of limitations will be set by you? -Know your comfort level with rate, payment, and term. Proposed Loan Proceeds Disbursement Refinance P/O Mtg   Purchase Purchase Price     P/O Taxes     Down Payment     Closing Costs     Seller Financing     Cash Out     Loan Amount     Other     Other     LOAN TOTAL     LOAN TOTAL               Proposed Loan Terms Rate     Am Term     LTV     Type     Prepay     Lockout                     Proposed Collateral Year built   Address   # of Buildings:   Sq. footage:   Lot size:   Occupancy %   O/O%   # of Units in subject property   # of Units O/O   # of Units Non-O/O   Urban or Rural   Describe specific use of subject property:     Describe all businesses that occupy subject property (ie. shoe store, boutique, dry cleaners, etc.).     Orig. Purchase Price Date Income Expense NOI Real Estate Value Source Date Summary (Explain purpose, history, relevant property info)         FOR OFFICE USE ONLY FICO EXP TYPE LTV DSCR DTI Company Name ____________________ Ph: ______________ Fax _____________ ANNUAL INCOME                                                                                                               LAST 12 MONTHS RENTAL INCOME COLLECTED   OTHER INCOME             TOTAL INCOME COLLECTED     ANNUAL EXPENSES                                                                                                                                    LAST 12 MONTHS TAXES   INSURANCE   GAS   ELECTRICITY   WATER/SEWER       PEST CONTROL   SECURITY   GARDENER   RESIDENT MANAGER   OFFSITE MANAGEMENT   SUPPLIES   POOL SERVICE   CLEANING SERVICE