A mini-perm loan is almost always used on new properties that are just getting started. Some common examples of ideal properties for this type of loan are apartment complexes, retail buildings, offices, industrial parks, and land developments. Traditional lenders that offer a monthly fixed payment normally stay away from these types of investments unless they come up with a considerable down payment.
Why Mini Perm Loans?
Traditional lenders are desirable because of their low interest rates and fixed payments. However, in the early stages of a development project, these types of lenders usually stay away from income producing properties. They want to see an extended history of business success before they will lend to a project. Unless you can show them a similar project that you have done in a very similar environment, they will likely stay away.
A mini perm loan comes in and fills the void where traditional loans fall short. A mini perm loan is set up by the borrower to cover the early phase of the development. With this type of loan, you are not tied to a strict repayment schedule which is good for new properties. It may be a few months before the property starts to generate income. Therefore, flexibility is the key to success.
Our Offering
Loan Size
$1,000,000 – $5,000,000
$1,000,000 – $2,000,000 (lite doc or stated)
Loan Terms
3 to 8-year primary term
Property Types
Office, Medical, Industrial, Multi-family, Hospitality, Self-Storage
Amortization
Interest-only available for 2 years, then 30 year amortization
Owner-Occupied Properties
Allowed subject to minimum credit requirements
Fees
2-3 point origination. No exit fee.
Loan Purpose
Acquisition, Refinance and Cash-out
Loan-to Value
Up to 80%
Security
First Mortgage Liens
Recourse
Non-recourse to Principals with exceptions on case-by-case basis.
Interest Rates
Fixed rate usually 7-9%