MULTIFAMILY BRIDGE LOANS
Dragon Realty Capital offers investors the ability to bridge their multifamily properties, either through purchase or renovation, to get to the point of full stabilization. Once stabilized, DRC can also offer very competitive permanent financing HERE.
(Note that actual program parameters vary by investor, this web page is meant as a summary of the different programs offered by Dragon Realty Capital and is not meant as a full program description.)
- Detailed Current or Pro Forma Rent Roll.
- Last YE Profit & Loss and Trailing 12 Month Profit & Loss by Month.
- Property address, construction date, last renovation date, and a cost breakdown of any improvements made (if applicable).
- Guarantor PFS & Investment resumé.
- Line Item Cost Breakdown for improvements to be made.
- Purchase contract OR
- Most recent mortgage statement(s).
General Program Descriptions:
LOAN AMOUNTS: $250,000 to $30,000,000.
LOAN TERMS: 6 to 24 months.
LOAN PURPOSE: Acquisition or Refinance
ELIGIBLE PROPERTIES: Conventional multifamily housing with five residential units or more. Mixed use subject to limitations.
RENOVATIONS: Periodic advances from escrow accounts to fund renovation costs
RATES: Floating, minimum of 1-month Libor + 450 bps. Fixed, minimum of 8%.
MIN. INTEREST CHARGE: Typically 6 months
AMORTIZATION: Interest Only
ORIGINATION FEE: Typcally 3%. An Exit Fee may apply, depending upon the exit program chosen.
MINIMUM DSCR: From none to 0.85x (on In-Place NOI), depending upon the program chosen.
MAXIMUM LTV: 80%
MAXIMUM LTC: 85%
RECOURSE: Non-recourse with standard carve-out provisions or Personal Guaranty depending upon the program chosen.
SPONSOR: Minimum FICO score of 600; no foreign borrowers. Net worth >= 100% of estimated permanent loan. Liquidity > 9 months of debt service on estimated perm loan.