Real Estate Loans
Add to your company’s real estate portfolio with ease by utilizing our vast real estate financing capacity. We’ll connect you with the financial tools to buy, renovate, or refinance real estate assets.
Access the properties you need to take your business to the next level.
Call Us Today!
1 (408) 451-3993
INVESTMENT PROPERTY LOAN PRODUCTS
Fix & Flip
Ground Up
Stabilized Bridge
------- Foreign Nationals Eligible -------
(Visa, Green Card or Work Permit)
FIX AND FLIP
| Property Types | Residential (1-4 Units) |
|---|---|
| Loan Amount | $500,000 – $3,500,000 |
| Maximum Loan to Cost | 90% of Purchase 100% of Rehab Costs |
| Maximum Loan to ARV | 75% |
| Term Length | 12 months, up to 18 option |
| Recourse | Full Recourse |
GROUND UP
| Property Types | Residential (1-4 Units) |
|---|---|
| Loan Amount | $500,000 – $3,500,000 |
| Maximum Loan to Cost | Up to 75% of the lower of land value or purchase price/60% if unpermitted, plus 100% of construction Max 85% of total project costs (Max 90% for experienced developers with 3+ similar projects LTC Catch Up Draw to raise initial advance to 75% at approval of required plans/permits post-closing |
| Maximum Loan to ARV | 70% |
| Term Length | 12 months, up to 18 option |
| Recourse | Full Recourse |
COMMERCIAL REFINANCE / GROUND UP
| Property Types | Commercial / Mixed-Use |
|---|---|
| Loan Amount | $500,000 – $10,000,000 |
| Maximum Loan to Cost | Up to 70% – LTV Max 80% – LTC 100% Rehab Cost (Higher LTC may be available for experienced developers with 2+ similar projects) |
| Maximum Loan to ARV | 70% |
| Term Length | 12 months, up to 18 option |
| Recourse | Full Recourse |
STABILIZED BRIDGE
| No DSCR | DSCR Exit | |
|---|---|---|
| Purpose | To provide bridge financing on a property that was recently renovated/constructed and is currently/soon to be listed for sale | To provide bridge financing on a property that is currently rented or soon to be rented, but is not yet ready for permanent financing |
| Loan Amount | Min: $500,000 Max: $1,500,000/larger loans allowed at NEXUS discretion |
Min: $500,000 Max: $1,000,000 for SFR, $2,000,000 for 2-4 unit / larger loans allowed at NEXUS discretion |
| Term Length | 12 Months, up to 18 option | 12 Months, up to 18 option |
| Property Types | Single Family/2-4 Unit/Townhomes/PUD/Warrantable Condos | Single Family/2-4 Unit/Townhomes/PUD/Warrantable Condos |
| Max LTC | 85% of purchase price + verified completed capex if property owned < 6 months 70% if property owned > 6 months |
85% of purchase price + verified completed capex if property owned < 6 months 70% LTV |
| Max LTV | 65% if property owned > 6 months | 65% if property owned > 6 months |
| Min DSCR | N/A | 1.10 Exit DSCR based on lower of in-place rent and market rent |
| Min FICO | 660 | 660 |
| Collateral Restrictions | Property value within 90th percentile of market. No rural, exotic, or unique properties | No rural, exotic, or unique properties |
SINGLE PROPERTY RENTALS
| Property Types | Single Family/2-4 Unit/Townhomes/PUD/Warrantable Condos |
|---|---|
| Loan Amount | $500,000 – $2,000,000 |
| Loan Types | 30-Year Fixed Rate Mortgage (Fully Amortizing) 5/6, 7/6, 10/6 Hybrid ARMs (Partial 10 or Fully Amortizing) |
| Maximum Loan to Cost | If Owned < 3 months, 80% of Total Cost Basis |
| Maximum Loan to As-Is Value (Subject to Minimum FICO) | Purchase/Rate-Term Refinance: 80% Cashout Refinance: 75% |
| Minimum Debt Service Coverage Ratio (Gross Rent/PITI) | 1.10x |
| Term Length | 30 Years |
| Recourse | Full Recourse Only |
| Minimum Guarantor FICO | Mid-Score of 660 |
| Lease Requirements | Leased Units: Lower of (i) In-Place Rent & (ii) Market Rent Unleased Units: 90% of Market Rent (Purchase Loans only) |
RENTAL PORTFOLIOS
| Property Types | Single Family/2-4 Unit/Townhomes/PUD/Warrantable Condos |
|---|---|
| Loan Amount | $500,000-$50,000,000 |
| Loan Types | 30-Year Fixed Rate Mortgage (Fully Amortizing) 5/1/6, 7/1/6, 10/10 Hybrid ARMs (Partial or Fully Amortizing) |
| Maximum Loan to Cost | If Owned < 3 months, 80% of Total Cost Basis |
| Maximum Loan to As-Is Value (Subject to Minimum FICO) | Purchase/Rate-Term Refinance: 80% Cashout Refinance: 75% |
| Minimum Debt Service Coverage Ratio (Net Cash Flow/Debt Service) | For portfolios with ≤ $2MM AND ≤ 10 properties: 1.10x (Gross Rent/PITI) For all other portfolios: 1.20x (Net Cash Flow/Debt Service) |
| Term Length | 5, 10, & 30 Years |
| Recourse | Non-Recourse with “bad-boy” carve-outs and Pledge of Equity of Borrowing Entity |
| Minimum Guarantor FICO | For portfolios with ≤ $2MM AND ≤ 10 properties: Mid-Score of 660 For all other portfolios: Mid-Score of 680 |
| Lease Requirements | Minimum Occupancy Rate of 90% by Unit Count Leased Units: Lower of (i) In-Place Rent & (ii) Market Rent Unleased Units: 90% of Market Rent (Purchase Loans only) |
Frequently Asked Questions
When are Real Estate Loans not a good fit?
If you don’t have collateral and can’t afford to make a down payment, you may want to reconsider taking out a real estate loan. There are financing options available for businesses in this situation. Let us help you explore them.
Which Real Estate Loan is right for my business?
Not all real estate loans are the same. This is an advantage to businesses that don’t fit a common mold. The right loan for you will depend on the size of your business, your overall financial picture, and your business goals. Our expert brokers will help you narrow down the options until you find a loan that’s just right.
How do I secure a loan without real estate assets?
If your business has excellent credit, you may qualify for unsecured loans that don’t require collateral. You can also use other assets like equipment and stocks as security.
What if I want to upgrade real estate using sustainability features?
Adding solar panels, a greywater system, or upcycled building materials is not only great for the environment but also financially wise. The SBA allows businesses making these types of improvements to borrow higher than the average $5M cap at $5.5M. There are also tax advantages for businesses that build sustainably.