Non-Recourse Loans On Multifamily Properties and Commercial Real Estate- Call Edward Voccola, LLM 646-342-4963

Non-Recourse Loans On Multifamily Properties and Commercial Real Estate- Call Edward Voccola, LLM 646-342-4963

A non-recourse loan on a commercial or multifamily property is a loan that does not require the personal guarantee of the borrower(s). To put it simply this increases investors/lender risk and reduces risk/liability to borrower(s). In the event of loan default, whatever money the bank does not recuperate from the property may be sought out directly via the borrower and his personal assets to make the lender whole. CMBS loans for example are generally non-recourse financial instruments. Agencies such as Fannie Mae, Freddie Mac, and HUD all provide non-recourse multifamily financing as well. 

Get a non recourse loan quote

In the case of non-recourse commercial loans, the lender's only means for recuperation of lost investment and yield in the event of a default is the property itself and the income the property generates. This is obviously advantageous to borrowers because, who wouldn’t want less risk and exposure? Conversely non-recourse loans carry higher risks to lenders and investors. Because of this, the commercial lenders often require certain property types, and classes, in specific markets. More specifically than that, lenders are really looking to reduce leverage and increase DSCR (debt service coverage ratios). 

Furthermore, non-recourse commercial mortgage loans are generally only available to borrowers that are very strong financially, because in those cases, a default is of course less likely as the borrower has the financial means to ensure the property’s income is used for the property. Lenders will also require a very experienced borrower for making a non-recourse loan.

To sum things up, non-recourse loans are harder to get, but are very much the norm in the market of commercial loans over $2 - $350 million. There is one caveat, or carve-out may be a better word. Most non-recourse loans come with bad-boy carve-outs, which provide the lender full recourse in the event a borrower is negligent or does anything fraudulent. These carve-outs can convert a non-recourse mortgage loan to a full-recourse loan in a moment’s time.

Want to learn more? Call (646) -342-4963 For A Free Commercial or Multifamily Loan Quote Today.

A non-recourse loan on a commercial or multifamily property is a loan that does not require the personal guarantee of the borrower(s). To put it simply this increases investors/lender risk and reduces risk/liability to borrower(s). In the event of loan default, whatever money the bank does not recuperate from the property may be sought out directly via the borrower and his personal assets to make the lender whole. CMBS loans for example are generally non-recourse financial instruments. Agencies such as Fannie Mae, Freddie Mac, and HUD all provide non-recourse multifamily financing as well. 

Get a non recourse loan quote call Edward Voccola, LLM www.EdwardVoccolaLLC.com,

Call 617-233-5555, 646-342-4963

Email; [email protected], or [email protected]

In the case of non-recourse commercial loans, the lender's only means for recuperation of lost investment and yield in the event of a default is the property itself and the income the property generates. This is obviously advantageous to borrowers because, who wouldn’t want less risk and exposure? Conversely non-recourse loans carry higher risks to lenders and investors. Because of this, the commercial lenders often require certain property types, and classes, in specific markets. More specifically than that, lenders are really looking to reduce leverage and increase DSCR (debt service coverage ratios). 

Furthermore, non-recourse commercial mortgage loans are generally only available to borrowers that are very strong financially, because in those cases, a default is of course less likely as the borrower has the financial means to ensure the property’s income is used for the property. Lenders will also require a very experienced borrower for making a non-recourse loan.

To sum things up, non-recourse loans are harder to get, but are very much the norm in the market of commercial loans over $2 - $350 million. There is one caveat, or carve-out may be a better word. Most non-recourse loans come with bad-boy carve-outs, which provide the lender full recourse in the event a borrower is negligent or does anything fraudulent. These carve-outs can convert a non-recourse mortgage loan to a full-recourse loan in a moment’s time.

Want to learn more? Call (646-342-4963) or 617-233-5555 For A Free Commercial or Multifamily Loan Quote Today.

NON-RECOURSE CONSTRUCTION LOANS

We provide our clients unique access to non-recourse construction loans for ground-up development of multifamily and commercial real estate properties. Our loan platform offers higher leverage (LTC), flexible draw schedules and competitive interest rates. Achieve better returns by engaging Integra for your next transaction.

Non-Recourse construction loans are tougher to obtain without a proper lender relationship and an experienced commercial mortgage broker by your side. Edward Voccola & Co. LLC ’s construction financing platform provides developers with highly-coveted non-recourse loan options for a myriad of projects across United States. This construction loan program is often tied into a mini-perm to permanent loan transition when the project is completed to give our clients a “one stop shop” solution. We serve the construction financing needs of experienced commercial real estate developers in need of creative and competitive loan structures.

What elements are required for non-recourse construction loans?

There is generally a criteria that construction lenders look for when offering to finance a ground-up project on non-recourse basis. If a project can display a combination of pre-leasing, pent-up demand, a strategic location, sponsorship track record, and a meaningful equity contribution, then we can make a strong case for a non-recourse component in the current market. You do not necessarily need to have all of the above, but rather a combination of these merits to get your loan approved by the lender’s credit committee. Integra will prudently guide you every step of the way to make sure that the loan closes quickly and with top-tier characteristics.

Below are general parameters of loans we facilitate:

• Loan Amount: $5 M to 250M+
• Loan Term: 12-36 months (+ mini-perm)
• Property Types: Multifamily, Office, Retail, Industrial, Self-Storage, Rehab & Condos
• Geography: Primary and Secondary markets
• Lien Type: First Mortgage/ Deed of Trust
• Loan-to-Cost: Up to 85% of cost
• Prepayment: Generally none
• Recourse: Non-recourse, partial recourse and recourse, subject to sponsorship financial strength, location and asset quality.
• Interest Rate: Competitive LIBOR Rate based financing
• Completion Guaranty: Required.
• Payment Guaranty: Required.

COMMERCIAL REAL ESTATE FINANCING

Contact: Edward Voccola, LLM, 617-233-5555, 646-342-4963, [email protected], [email protected] or [email protected], www.EdwardVoccolaLLC.com

Financing for commercial real estate nationwide. Short term non-recourse bridge loans. Ground-up Joint Venture construction financing. High leverage personally guaranteed loans. Benefit from this experienced collaborative private lending source to take advantage of market opportunities, project development and construction, reposition under-performing properties, completion of construction, substantial renovations, property conversions, resolve significant financial issues and more 

 Edward Voccola & Co. LLC provides bridge financing for the following purposes:

• Acquisition 
• Refinancing
• Cash-out refinancing
• Completion of construction
• Substantial renovations
• Tenant fit-up
• Debt-buy down
• Partnership buy-out
• Foreclosure avoidance
• Bankruptcy discharge
• Paying off defaulted mortgage loans (DPO)
• Debtor-in-Possession Financing (DIP)

We run a discreet, competitive, relationship-driven process and provide highly customized solutions, speed of execution, reasonable fee structures, and a collaborative approach.

Edward Voccola & Co. LLC provides bridge financing for the following property types:

• Select raw land – case by case
• Fully entitled land – case by case
• Hospitality – branded and independent
• Multi-Family 
• Seniors and Assisted Living
• Office
• Flex, warehouse, induistrial
• Self storage
• Retail, mall, strip center
• Owner-occupied or investor acceptable
• Fractured condos (as apartments)
• Commercial condominium – one unit or entirety
• Select special purpose properties – case by case
• Note purchases
• Property conversions
• Major renovations and upgrades
• Cannabis tenancies

Edward Voccola & Co. LLC processes transactions in-house:

We represent fully-funded private financial sources, exclusively. Our strengths include decades of experience in virtually every facet of the commercial real estate business, efficient capital allocation, rigorous transaction analysis, creative deal structuring, and timely execution. After deal evaluation, we issue our Letter of Intent and then underwrite for your transaction. Then our conditional Loan Commitment is issued, subject to MAI appraisal, environmental, and any other property-specific third-party requirements. After the third party reports are satisfactory, we prepare for the Closing. Including 30 days for an appraisal, the process takes approximately 45 calendar days, from acceptance of our Letter of Intent, to Loan Closing.

We are experts in

the commercial mortgage financing business

Sterling Commercial Capital offers the following commercial financing expertise:

• Commercial Real Estate Finance
• Acquisition Finance
• Refinance
• Substantial Renovation Finance
• Completion of Construction Finance
• First Mortgage Bridge Finance
• First Deed of Trust Short Term Finance
• Mezzanine Finance
• Second Mortgage Finance
• Discharge from Bankruptcy
• Foreclosure Avoidance
• Mortgage Default Resolution
• Acquiring Mortgage Notes
• Discounted Note Payoff Finance
• Debtor-In-Possession Finance
• Non-Recourse Finance

We run a discreet, competitive, relationship-driven process and provide highly customized solutions, speed of execution, reasonable fee structures, and a collaborative approach.We are experts in

the commercial mortgage financing business

Edward Voccola & Co. LLC offers the following commercial financing expertise:

• Commercial Real Estate Finance
• Acquisition Finance
• Refinance
• Substantial Renovation Finance
• Completion of Construction Finance
• First Mortgage Bridge Finance
• First Deed of Trust Short Term Finance
• Mezzanine Finance
• Second Mortgage Finance
• Discharge from Bankruptcy
• Foreclosure Avoidance
• Mortgage Default Resolution
• Acquiring Mortgage Notes
• Discounted Note Payoff Finance
• Debtor-In-Possession Finance
• Non-Recourse Finance

We run a discreet, competitive, relationship-driven process and provide highly customized solutions, speed of execution, reasonable fee structures, and a collaborative approach.

About Edward Voccola & Co. LLC- Edward Voccola, LLM

Edward Voccola & Co. LLC is a Boston -New York City-based real estate Funding firm focused on debt and equity investment strategies. Founded in 2001, EVO focuses on multifamily, retail, office, industrial and hotel sectors. The firm primarily serves client funding needs in the United States, Canada, Latin America, UK , EU countries, Caribbean island utilizing a global investor base consisting of corporate and public pension funds, sovereign wealth funds, university endowments, foundations, fund of funds, family offices, and high net worth individuals. EVO is across all real estate investment, development, and property management disciplines. Debt strategies include construction and acquisition lending, special situation financing and debt acquisitions; equity real estate strategies include opportunistic and value-add investments business funding as well as ground-up development. Among other industry recognitions, EVO has been named to the Top 10 Commercial Real Estate Funders prestigious “Top 10” list of Nationwide real estate players and is consistently cited as one of the industry’s top construction , acquisition , and development funders.

For Further Information , please contact Edward Voccola, LLM at 617-233-5555 or 646-342-4963, or EMAIL [email protected], Info@EdwardVoccolaCo. com, [email protected]