Dax Dickson

I am proud to Present Tim Jochim as the newest member of The Commercial Finance Store!

Tim comes to us with years of finance experience. He will be taking over the Rehab Construction Financing and Consulting.

Below is the program Tim is now in charge of.


LIST OF ITEMS REQUIRED TO UNDERWRITE A REHAB CONSTRUCTION LOAN

Required Documentation:

- A PERSONAL FINANCIAL STATEMENT (PFS) FOR EACH PARTNER with an interest of 20% or more.

- BANK STATEMENTS and ASSET STATEMENTS for any and all accounts listed on the PFS

- LAST 3 YEARS' TAX RETURNS (business & personal) for each partner with an interest of 20% or more in the project.

- COPY OF FULLY EXECUTED PURCHASE CONTRACT.

- SWORN CONSTRUCTION STATEMENT including hard and soft costs.

- BACKGROUND/BIO ON EACH PARTNER emphasizing development/construction/renovation/real estate experience and past projects successfully completed.

- Copy of your credit report if available.


General Loan Requirements:


1.) Minimum 660 FICO score
2.)If rental, minimum 1.25 Debt Service Coverage Ratio (DSCR)
* If using DTI, maximum of 45%
* Can blend with global calculation
**If DTI and DSCR do not work we can use marketing plan and pledge payment reserves to bank
3.) Six months reserves
4.) Purchase plus construction = X, Loan amount = 80% of X


*** The documents listed above are the documents we require to evaluate the borrower and issue a pre-approval. Every deal is different so the bank may require some additional documentation or clarification. ***

If you would like to learn more please contact:

Tim Jochim
The Commercial Finance Store
Rehab Construction Specialist
612-702-1111
timjochim@comcast.net

Rehab Loans are a great way to buy investment reo properties in the Minneapolis and St Paul Metro area.


How they work:

Purchase + Construction costs = X

Rehab loans require a 20% down payment of X

This means that 80% of all costs are financed

These loans do require proof of repayment and credit scores of a 620 FICO or better


Many investors and agents do not qualify for the most populiar rehab loan called the FHA 203K. It is a common mistake made that people think the only way to buy these great bank owned properties is cash if they can not get the FHA 203K loan or other conventional mortgage programs.

This is not TRUE!!!

Qualified borrowers can buy using commercial rehab construction loans. Both for buying to fix and sell or buying to fix and rent.

If you or a client of yours would like to learn more about these great loan programs do not hesitate to contact me.


Dax Dickson
Owner
The Commercial Finance Store, LLC.
612-578-9898

I have heard many real estate agents say that the only way to close on condemned houses is cash.

This is not true!

There is a GREAT residential REHAB loan:

This is how it works:

- 80% LTV of the purchase plus construction costs
- 620 Minimum FICO
- 50% DTI

It is that easy!

Dax Dickson

The Commercial Finance Store

Owner

612-578-9898

Agency or Government Guaranteed Mortgage Financing

FNMA, Freddie Mac, FHA/HUD and USDA guaranteed debt financing is available for Multi-family market rate and affordable housing and senior rental projects. Retail elements in mixed use projects may be eligible in some cases. Construction/permanent loans are available from FHA/HUD and USDA.

Small and Rural hospital financing is available under FHA Section 242 programs, as is enhanced and unenhanced bond financing.

Rates are presently highly competitive. Loan to value ratios range from 75% to 90%, depending upon the agency. FHA/HUD, FNMA and Freddie Mac have non-recourse features.

Documentation Required for Application

Documentation varies by lender, with each agency having a number of specific forms to complete. Borrowers should be ready to supply:

1. Three years personal tax returns of any of the principals owning 20% or more of the projects.
2. Three years business tax returns if a refinance of an existing property.
3. Sworn construction statements, when applicable.
4. Rent rolls, by month for the preceding twelve months.
5. Two years income and balance sheet projections, with the first year by month.
6. Old appraisals, environmental reports or market studies, if available.
7. Personal financial statements of any principal owning 20% or more of the project.
8. Credit reports of the principals, if available.

Additional information will be required by the various lenders depending upon the type of project and the lender selected.

Dax Dickson

The Commercial Finance Store

Serving Minneapolis / St Paul MN and surrounding areas

612-578-9898

We also can help facilitate your commercial real estate mortgage loan needs from construction financing to securing the long term mortgage debt on existing properties owned and business loans.

The Commercial Finance Store is ready to help you secure the business loans your company needs!

SBA 504 Loans

These loans are for owner occupied (51% of space or more) commercial real estate. Features of the program are:

• The maximum loan amount is $4,000,000.
• The loan to value is 90%, reducing to 85% if the property is single-purpose.
• The rate is fixed, with an amortization period of 25 years. Rates presently range from 5.75% to 6.25%.
• SBA guarantee fees have been waived.
• Prepayment penalties are negotiable.

If you need help securing financing for your business, contact us. We will help you from writing your business plan to closing your business loan.

Dax Dickson

The Commercial Finance Store

Serving Minneapolis / St Paul MN and surrounding areas

612-578-9898

We also can help facilitate your commercial real estate mortgage loan needs from construction financing to securing the long term mortgage debt on existing properties owned.