Commercial Real Estate Finance


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GBCIB offers commercial real estate finances with competitive rates.

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Commercial Real Estate Finance

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