Where commercial loans are all we do! Todays Mission: To establish a - - PowerPoint PPT Presentation

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Where commercial loans are all we do! Todays Mission: To establish a - - PowerPoint PPT Presentation

Sep 01, 2022 319 likes •934 views

Where commercial loans are all we do! Todays Mission: To establish a long-term profitable relationship and provide you with the knowledge needed to originate and qualify potential commercial deals that will CLOSE and put DOLLARS in

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“Where commercial loans are all we do!”

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Today’s Mission:

To establish a long-term profitable relationship and provide you with the knowledge needed to originate and qualify potential commercial deals that will CLOSE and put DOLLARS in your pocket!

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Who is APEX Mortgage?

  • Subsidiary of Firstrust Bank
  • Small Balance Commercial Lender
  • Friend of Brokers for 25 years
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APEX Mortgage – above the rest

  • We don’t charge any upfront fees
  • We close our loans in 2 to 4 weeks
  • We handle all processing
  • We portfolio and service all loans
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APEX Basics

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Loan Sizes

Minimum: $25,000 Maximum: $500,000

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Where does APEX lend?

Nationwide in 42 states excluding:

Alabama / Alaska / Hawaii Michigan / Nevada / North Dakota / Vermont / West Virginia

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Programs

  • Core program: 25-year fixed rates begin

at 8.5%

  • Interest Only product available
  • Flexible ARM’s available if necessary
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Soft Approach to Hard Money

Eligible Scenarios

  • Bridge to Sale
  • Rehab
  • Credit <600
  • Non-seasoned properties
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Soft Approach to Hard Money

  • Interest only
  • 1-5 year balloons
  • Rates higher than core programs
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Core Program - Loan to Value

  • 70% maximum
  • Cross collateral options available to

increase loan amount.

  • Seller Seconds available to 80% CLTV
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Core Program - Credit Requirements

  • Core programs for credit scores above

600

  • Programs available for all credit grades
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Getting Started

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Getting Started

What do you do with a potential deal?

  • Complete a 1003 application
  • Get credit report
  • Call APEX
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Essential questions to ask about potential commercial building financing

  • When did you buy the building and what

did you pay for it?

  • Why do you want this loan and what are

your plans for the building?

  • Why have you had past credit problems?
  • For purchases – Where is the down

payment money coming from?

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Submission Requirements

1. Completed 1003 or Personal Financial Statement 2. Current Tri-merge credit report 3. Brief description of why borrower wants the loan

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Qualifying a Potential Deal

All deals are approved according to the same criteria

  • Character
  • Credit
  • Capacity
  • Collateral
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Income Requirements

Investment Properties must cover the debt @ 1.25% DSCR

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The APEX Process

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The APEX Process

  • Underwriter review
  • You get offer
  • You sell the deal
  • Call APEX and let us know how much

you are charging and borrower contact information

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The APEX Process

  • APEX interviews the borrower
  • APEX issues Commitment Letter
  • APEX schedules appraisal, clears title,

collects stips

  • APEX schedules closing
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The APEX Process – Your Role

  • Continue finding more business while

APEX does all the work

  • Collect Check
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APEX Borrowers

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Your Market:

All commercial property owners who cannot be served by local banks

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The Typical APEX Borrower

 Self-employed borrowers  Less than perfect credit  Story loan borrowers  Bank turn downs  Hard money refi  Time is of the essence  Tax issues  Someone who would typically need a stated deal

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Who is your typical borrower?

Eligible Property Type Examples

Multi-Family

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Who is your typical borrower?

Eligible Property Type Examples

Day Care Facility

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Who is your typical borrower?

Eligible Property Type Examples

Auto Repair Shop

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Who is your typical borrower?

Eligible Property Type Examples

Mixed Use

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Who is your typical borrower?

Eligible Property Type Examples

Motel/Hotel

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Who is your typical borrower?

Eligible Property Type Examples

Bed & Breakfast

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Who is your typical borrower?

Eligible Property Type Examples

Funeral Home

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Who is your typical borrower?

Eligible Property Type Examples

Warehouse/Light Industrial

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Who is your typical borrower?

Eligible Property Type Examples

Office Building

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Who is your typical borrower?

Eligible Property Type Examples

Self Storage Facilities

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Who is your typical borrower?

Eligible Property Type Examples

Mobile Home Parks * Campgrounds

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Who is your typical borrower?

Eligible Property Type Examples

Retail * Strip Malls

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Who is your typical borrower?

Eligible Property Type Examples

Churches - Traditional

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Who is your typical borrower?

Eligible Property Type Examples

Churches – Non-Traditional

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Collateral Requirements

Ineligible Property Types:

  • Gas Stations
  • Assisted Living
  • Dry Cleaners
  • Raw land
  • Properties with environmental concerns
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APEX Compared to Other Money Sources

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Financing Sources

Hard Money

  • Commitment fees
  • 1 – 2 year balloon
  • Usually interest only
  • 55% maximum LTV
  • 5 – 10 Lender points
  • Broker fee tough to get due to the high lender fee
  • No YSP
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Financing Sources

Local Banks

  • Full document
  • Strict credit requirements
  • Limited property types
  • 5/25 programs
  • Balloons
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Financing Sources

Local Banks (cont’d)

  • 90 – 120 day close
  • Call and review options
  • Lower rate
  • No YSP
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Financing Sources

Intermediary Lenders

  • Less stringent underwriting guidelines
  • Higher rates than banks
  • Long terms and full amortizations

available

  • Less costly than hard money
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Finding Deals

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How Do I Find These Deals?

  • Accountant
  • Lawyers
  • Bank loan officers – become

the go-to product

  • Bank REO teams
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How Do I Find These Deals?

  • Review old 1003’s for self-employed borrowers
  • ver the past 5 years
  • Talk to private lenders – they need a take-out
  • ption
  • Add commercial tag-line to everything you have
  • Marketing
  • Social media
  • Phone message
  • Business Card
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TOP 5: What’s in it for you?

  • 2. Serving an under-served market
  • 3. Lots of pent-up demand
  • 4. Not subject to regulation
  • 5. Closings in 3 weeks
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#1: What’s in it for you?

$$$$$

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#1: What’s in it for you?

$$$$$

  • 2 points YSP available on most

deals

  • Broker protected up to 5 total

points

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APEX’s Recent Georgia Closings

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Who is your typical borrower?

Recent Closing #1

Office

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Who is your typical borrower?

Recent Closing #1

 Converted house into office space for insurance agent in Norcross  Loan request $275,000  Borrower needs to show cash reserves GA banking department  APEXable™ because Borrower’s business has been closed for 18 months  Broker made 4 points -- $11,000  Deal closed 26 days from application

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Who is your typical borrower?

Recent Closing #2

Restaurant

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Who is your typical borrower?

Recent Closing #2

 Japanese restaurant purchase in Roswell  Borrower opening second location  $500,000 loan request, borrower bringing significant cash to the table  Broker made 5 points - $25,000  Deal closed in 16 days  Deal was APEXable™ because there were no operating financials for start up restaurant, but borrower had significant cash investment.

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Who is your typical borrower?

Recent Closing #3

Office Condo

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Who is your typical borrower?

Recent Closing #3

 Office condo purchase  $125,000 loan amount  625 credit score  Deal was APEXable™ due to borrower’s low credit score  Broker made 4 points - $5,000  Loan closed in 3 weeks

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Who is your typical borrower?

Commercial Loans Made Easy:

A 5 Part Webinar Series Attend all five Apex Webinars and earn an extra $500 on your first loan closing!

  • Commercial Loans 101
  • The Power of Marketing
  • Underwriting Commercial loans
  • Overcoming Objections: How to Sell Non-Conforming

Commercial Mortgages

  • Beyond the Application – Getting your loan closed
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  • We don’t charge any upfront fees
  • We charge only ONE lender point at closing
  • Brokers can make up to 5 points
  • We close our loans in 2 to 4 weeks
  • We look at credit scores as low as 600
  • We need only a 1003 or PFS, tri-merged

credit report and summary to look at a deal

Thank You!

Ryan Boyle

Commercial Account Executive 800-262-2739, X267 rboyle@apexmtg.com