Commercial pre-approvals are not like they are in residential. You need to provide a complete file these days in order to get a term sheet since LOIs are basically worthless. That, and most banks assess a fee to work on a file in order to get that term sheet, and at the end of the day, most banks aren't lending anyway.
That being said, there are lenders out there, but in order to prevent wasting your client's time and money you need to know where to look. A good commercial broker can help you.
This is a snapshot of what you can expect for a strip mall since they are very hard to do right now given the present state of the economy.
Up to 85% LTV on an anchored strip mall.
65% for an unanchored strip mall if it has long term leases and a high occupancy level.
NNN leases are preferred with anything lower affecting the LTV.
DSCR of 1.4
5 year loan with 20-25 year amortization.
Rates will depend on if this is a small balance commericial or conventional deal.
C-loans can be a good option, but if you don't know this business, you can find yourself dealing with a Kennedy Funding type outfit or a broker posing as a lender so do your DD before sending a dime.
If you have any questions, feel free to ask me.
Darryl@glblsolutions.com
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