Your SlideShare is downloading. ×

Commercial Real Estate Finance

298
views

Published on

GBCIB offers commercial real estate finances with competitive rates.

GBCIB offers commercial real estate finances with competitive rates.


0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
298
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Commercial Real Estate Financing GBC International Bank
  • 2. Commercial Real Estate Financing
    • Secured by 1 st trust deed of commercial property
      • New purchase
      • Refinance
      • Cash out
  • 3. Commercial Real Estate Financing
    • Types of commercial property
      • Multi-family residential building (apartment)
        • 5 units or above
      • Retail strip / shopping center
      • Office building
      • Warehouse / Light industrial building
      • Mixed-used
      • Other types of property
        • Restaurant, body shop, gas station, etc.
  • 4. Commercial Real Estate Financing
    • Loan Terms
      • Apartment loan
        • Maximum 30 years amortized due in 10 years
      • Other types of loan
        • Maximum 25 years amortized due in 10 years
    • Rates
      • GBC offers variable and fixed rate up to 3 years
        • Floor and prepayment penalty applied
    • Fees
      • Loan facility fee, processing fee, documentation fee
      • 3 rd party fees
        • Appraisal, environmental, credit report, flood cert, title, etc .
      • Other closing costs
  • 5.
    • Preliminary approval criteria
      • Location and condition of the subject property
      • Loan-to-value (LTV)
      • Primary sources of repayment
        • Rental income for income property
        • Business income for owner-occupied
      • Secondary sources of repayment
        • Other income from borrowers
      • Credit history of the borrowers
    Commercial Real Estate Financing
  • 6. Commercial Real Estate Financing
    • Loan application package
      • Borrower’s tax returns (3 years, if applicable)
      • Guarantor’s tax returns (3 years, if applicable)
      • Rent-roll and/or lease agreements
      • Personal financial statement
      • Company’s financial statement (owner-occupied property only)
      • Brief synopsis of borrower and business
      • Purchase agreement (purchase transaction only)
  • 7. Commercial Real Estate Financing
    • Loan application process
      • Collect application package
      • Perform preliminary analysis
      • Present to management for preapproval
      • Issue letter of intend (LOI) to borrower
      • Collect good faith deposit with signed LOI
      • Order appraisal and environmental reports
      • Perform credit analysis for final approval
      • Prepare loan documents for borrower to sign
  • 8. Commercial Real Estate Financing
    • Timeframe of loan application process
      • Average between 45 and 60 days
        • Depending how long appraisal takes
      • The sooner the completed loan package is received from the borrower, the faster the loan can be boarded by the lender
  • 9. Commercial Real Estate Financing
    • Other considerations for final approval
      • Appraisal report
        • Market rent, appraisal value, and other conditions
      • Environmental issue
        • Phase I or II may be required
      • Preliminary title report
        • Must be free from taxes or other liens
      • Source of down-payment (for new purchase)
        • Lender must verify the source of down-payment for compliance purpose
      • Property Insurance
        • Replacement cost, deductible, liability insurance
  • 10. Commercial Real Estate Financing
    • Other commercial real estate loan programs available
      • SBA 504
      • Commercial revolving line of credit
  • 11.
    • For questions or inquiries, please feel free to contact us
      • Derek Lee, Business Relationship Manager
        • (951) 894-8172 - Office
        • (626) 616-6266 – Mobile
        • [email_address]
      • For details, please also visit our website
        • www.gbcib.com
    Commercial Real Estate Financing