Eligible Property Types:
Multifamily-Structures containing five or more dwelling units with common area facilities such as entrances, lobby, elevators, stairs, mechanical space, walks or grounds. Units must be rented on a non-transient basis such that tenants consider their unit their permanent residence.
Mixed Use- Mixed-use properties must contain at least one commercial unit (retail, office etc.) and at least one residential unit. Common types of mixed-use properties include a ground floor retail or office unit with apartment(s) above, all within the same building.
Loan Size:
$150,000 - $2,000,000
Eligible Locations:
Nationwide
Loan Term Amortization:
15, 20, 30 years
Collateral:
First position mortgage as certified by title search and title insurance policy on property. Collateral assignment required; subordination of tenant leases may be required.
Loan Pricing:
Determined by pricing matrix.
Debt Service Coverage Ratio:
Minimum DSCR of 1:1 depending upon property type, age, physical condition, location, and competitive market position.
Loan-to-Value Ratio:
Up to 90% of MAI appraised value conforming to FIRREA (580 plus minimum FICO).
Cash Out Refinance:
Borrower must justify proceeds to be used for business purposes only. Minimum 2 years ownership; maximum LTV 80 to 90%.
Loan Escrows:
The borrower may be required to contribute monthly to an escrow account for real estate taxes and property insurance. The borrower may also be required to establish a monthly capital replacement escrow reserve equal to the greater of (a) 5% of gross revenues or (b) an amount to be determined by Beara Capital on the basis of an engineering report and site inspection.
Appraisal:
Complete Summary Appraisal required on most property types and all loans greater than $500,000; Residential USPAP Form 71B may be used on select Tier I properties.
Environmental Insurance/Screen or Phase 1:
May be required.
Survey:
No survey required if title company agrees to delete the standard exceptions from the title policy.
Reserves at Closing:
The borrower shall establish a remediation/repair reserve at closing equal to 125% of required deferred maintenance repairs as indicated in the environmental and architectural/engineering reports.
Eligible Principals:
U.S. citizens, permanent resident aliens, non-permanent resident aliens (with restrictions); majority principal owners cannot be on probation or parole.
Recourse:
Must be personally guaranteed by all 20% or greater owners of real estate or operating entity.
