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

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


  1. “Where commercial loans are all we do!”

  2. 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!

  3. Who is APEX Mortgage? • Subsidiary of Firstrust Bank • Small Balance Commercial Lender • Friend of Brokers for 25 years

  4. 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

  5. APEX Basics

  6. Loan Sizes Minimum: $25,000 Maximum: $500,000

  7. Where does APEX lend? Nationwide in 42 states excluding: Alabama / Alaska / Hawaii Michigan / Nevada / North Dakota / Vermont / West Virginia

  8. Programs • Core program: 25-year fixed rates begin at 8.5% • Interest Only product available • Flexible ARM’s available if necessary

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

  10. Soft Approach to Hard Money • Interest only • 1-5 year balloons • Rates higher than core programs

  11. Core Program - Loan to Value • 70% maximum • Cross collateral options available to increase loan amount. • Seller Seconds available to 80% CLTV

  12. Core Program - Credit Requirements • Core programs for credit scores above 600 • Programs available for all credit grades

  13. Getting Started

  14. Getting Started What do you do with a potential deal? • Complete a 1003 application • Get credit report • Call APEX

  15. 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?

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

  17. Qualifying a Potential Deal All deals are approved according to the same criteria  Character  Credit  Capacity  Collateral

  18. Income Requirements Investment Properties must cover the debt @ 1.25% DSCR

  19. The APEX Process

  20. 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

  21. The APEX Process • APEX interviews the borrower • APEX issues Commitment Letter • APEX schedules appraisal, clears title, collects stips • APEX schedules closing

  22. The APEX Process – Your Role • Continue finding more business while APEX does all the work • Collect Check

  23. APEX Borrowers

  24. Your Market: All commercial property owners who cannot be served by local banks

  25. 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

  26. Who is your typical borrower? Eligible Property Type Examples Multi-Family

  27. Who is your typical borrower? Eligible Property Type Examples Day Care Facility

  28. Who is your typical borrower? Eligible Property Type Examples Auto Repair Shop

  29. Who is your typical borrower? Eligible Property Type Examples Mixed Use

  30. Who is your typical borrower? Eligible Property Type Examples Motel/Hotel

  31. Who is your typical borrower? Eligible Property Type Examples Bed & Breakfast

  32. Who is your typical borrower? Eligible Property Type Examples Funeral Home

  33. Who is your typical borrower? Eligible Property Type Examples Warehouse/Light Industrial

  34. Who is your typical borrower? Eligible Property Type Examples Office Building

  35. Who is your typical borrower? Eligible Property Type Examples Self Storage Facilities

  36. Who is your typical borrower? Eligible Property Type Examples Mobile Home Parks * Campgrounds

  37. Who is your typical borrower? Eligible Property Type Examples Retail * Strip Malls

  38. Who is your typical borrower? Eligible Property Type Examples Churches - Traditional

  39. Who is your typical borrower? Eligible Property Type Examples Churches – Non-Traditional

  40. Collateral Requirements Ineligible Property Types: • Gas Stations • Assisted Living • Dry Cleaners • Raw land • Properties with environmental concerns

  41. APEX Compared to Other Money Sources

  42. 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

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

  44. Financing Sources Local Banks (cont’d) • 90 – 120 day close • Call and review options • Lower rate • No YSP

  45. Financing Sources Intermediary Lenders • Less stringent underwriting guidelines • Higher rates than banks • Long terms and full amortizations available • Less costly than hard money

  46. Finding Deals

  47. How Do I Find These Deals? • Accountant • Lawyers • Bank loan officers – become the go-to product • Bank REO teams

  48. How Do I Find These Deals? • Review old 1003’s for self -employed borrowers over the past 5 years • Talk to private lenders – they need a take-out option • Add commercial tag-line to everything you have • Marketing • Social media • Phone message • Business Card

  49. 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

  50. #1 : What’s in it for you? $$$$$

  51. #1 : What’s in it for you? $$$$$ • 2 points YSP available on most deals • Broker protected up to 5 total points

  52. APEX’s Recent Georgia Closings

  53. Who is your typical borrower? Recent Closing #1 Office

  54. 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

  55. Who is your typical borrower? Recent Closing #2 Restaurant

  56. 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.

  57. Who is your typical borrower? Recent Closing #3 Office Condo

  58. 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

  59. 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

  60. Thank You! • We don’t charge any upfront fees Ryan Boyle • We charge only ONE lender point at closing • Brokers can make up to 5 points Commercial Account Executive • We close our loans in 2 to 4 weeks • We look at credit scores as low as 600 800-262-2739, X267 • We need only a 1003 or PFS, tri-merged rboyle@apexmtg.com credit report and summary to look at a deal

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