[vc_row][vc_column][vc_column_text]<\/p>\n
[\/vc_column_text][\/vc_column][\/vc_row][vc_row full_width=”stretch_row_content_no_spaces”][vc_column width=”1\/4″][vc_single_image image=”298″ img_size=”full” css=”.vc_custom_1542311130435{padding-right: 20px !important;}”][\/vc_column][vc_column width=”3\/4″][vc_row_inner][vc_column_inner width=”5\/6″][vc_column_text]<\/p>\n
Commercial bank loans are provided by our correspondent community banks<\/strong>\u00a0<\/span>located throughout the United States.<\/p>\n [\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/6″][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space][\/vc_column][\/vc_row][vc_row full_width=”stretch_row” css=”.vc_custom_1542294487846{background-image: url(http:\/\/www.valuexpress.com\/wp-content\/uploads\/2018\/11\/Left-aligned-bkgd_02.jpg?id=295) !important;}”][vc_column][vc_row_inner content_placement=”middle”][vc_column_inner width=”1\/3″][vc_single_image image=”1538″ img_size=”full” alignment=”right” css_animation=”left-to-right” el_class=”overlap” css=”.vc_custom_1545168323345{margin-right: -75px !important;}”][vc_column_text css=”.vc_custom_1545181827302{padding-top: 10px !important;padding-right: 15px !important;padding-bottom: 10px !important;padding-left: 15px !important;background-color: #2e3192 !important;}”]<\/p>\n Embassy Suites [\/vc_column_text][\/vc_column_inner][vc_column_inner width=”2\/3″ css=”.vc_custom_1542300905032{padding-left: 100px !important;background-image: url(http:\/\/www.valuexpress.com\/wp-content\/uploads\/2018\/11\/Semi-transparent-bkgd.png?id=297) !important;}”][vc_column_text css_animation=”right-to-left”]<\/p>\n [\/vc_column_text][vc_column_text css_animation=”right-to-left”]<\/p>\n Commercial bank loans are conventional fixed-rate, first mortgage loans<\/strong> secured by stabilized or nearly stabilized income-producing and owner-occupied commercial real estate properties that are leased to tenants or are owner-occupied.<\/p>\n Commercial bank loans are provided by community banks, and non-bank lenders that have the capabilities to lend on commercial real estate properties.\u00a0Most commercial bank loans are full recourse to all the owners of the property that is financed. This means the owners personally guarantee repayment of the loan. In the event of default and a loss by the lender on the loan, the owners are personally obligated to pay the loss to the lender.<\/p>\n [\/vc_column_text][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space][\/vc_column][\/vc_row][vc_row content_placement=”middle”][vc_column width=”1\/2″][vc_column_text css_animation=”bottom-to-top”]<\/p>\n Commercial bank loans are a good fit for borrowers seeking a low interest rate<\/strong> loan with relatively low closing costs<\/strong>.<\/p>\n Commercial bank loans provide an opportunity to build a relationship with a commercial bank<\/strong> for other services, such as business deposit and checking accounts.\u00a0However, borrowers have to be comfortable providing a personal guarantee and must have sufficient net worth to support the guarantee.\u00a0In addition, commercial bank loans are typically restrictive regarding unrestricted cash-out loan proceeds when the new loan exceeds the balance of the loan being paid off.<\/p>\n Commercial bank loans provide for fixed- and floating rate options.\u00a0The loan term is typically three to five years.<\/p>\n Loan terms longer than five years typically have an interest rate reset based on a margin over a predetermined index.\u00a0Commercial bank loans are typically balloon loans that pay on a 20- or 25-year amortization schedule.<\/p>\n [\/vc_column_text][\/vc_column][vc_column width=”1\/2″][vc_single_image image=”2854″ img_size=”full” css_animation=”top-to-bottom”][vc_column_text css=”.vc_custom_1553007102695{padding-top: 10px !important;padding-right: 15px !important;padding-bottom: 10px !important;padding-left: 15px !important;background-color: #2e3192 !important;}”]<\/p>\n The Fairfield Inn and Suites [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space][\/vc_column][\/vc_row][vc_row full_width=”stretch_row” css=”.vc_custom_1542318976207{background-image: url(http:\/\/www.valuexpress.com\/wp-content\/uploads\/2018\/11\/Right-aligned-bkgd_04.jpg?id=296) !important;background-position: 0 0 !important;background-repeat: no-repeat !important;}”][vc_column][vc_row_inner content_placement=”middle”][vc_column_inner width=”2\/3″ css=”.vc_custom_1542305734249{padding-right: 125px !important;background-image: url(http:\/\/www.valuexpress.com\/wp-content\/uploads\/2018\/11\/Semi-transparent-bkgd.png?id=297) !important;}”][vc_toggle title=”How Are Commercial Bank Loans Underwritten?” custom_font_container=”tag:h6|text_align:left” custom_use_theme_fonts=”yes” el_id=”1542316277757-0c49fa85-2683″ use_custom_heading=”true”]<\/p>\n Commercial Bank loans are underwritten:<\/p>\n Commercial Bank loan underwriting also considers income the property owner earns from other sources, such as salary income or net income from other real estate sources.\u00a0In addition, Commercial Bank loan underwriting considers the income from other commercial properties and businesses owned by the borrower.\u00a0As a result, commercial bank loan underwriting can be cumbersome if the property owner owns many properties and businesses.<\/p>\n [\/vc_toggle][vc_toggle title=”What Is the Structure of a Commercial Bank Loan?” custom_font_container=”tag:h6|text_align:left” custom_use_theme_fonts=”yes” el_id=”1542316475500-b232c7b9-68ad” use_custom_heading=”true”]The typical structure of a commercial bank loan is a term of 3, 5, 7 or 10 years, with payments made based on a 20- or 25-year amortization schedule.<\/p>\n [\/vc_toggle][vc_toggle title=”What Types of Income-Producing Commercial Real Estate Are Eligible for Commercial Bank Loans?” custom_font_container=”tag:h6|text_align:left” custom_use_theme_fonts=”yes” el_id=”1542316676058-361feeab-7aa7″ use_custom_heading=”true”]<\/p>\n The following types of leased income-producing real estate are eligible for commercial bank loans:<\/p>\n In addition, the following types of owner-occupied commercial real estate are eligible for commercial bank loans, including multi-use owner-occupied properties (industrial, office, medical office, office\/warehouse, and retail).\u00a0In addition, semi-generic owner-occupied properties are also eligible, including automobile dealers, light automotive services, tire and brake centers, funeral homes and schools and day care centers.\u00a0In certain situations, high performing Special Use properties are eligible for commercial bank loans, including restaurants and specialized manufacturing facilities.<\/p>\n Within these income producing property categories, the following sub-categories are also eligible:<\/p>\n Eligible Multifamily:<\/span>\u00a0<\/strong>Student Housing, Age-Restricted (Seniors) Multifamily, Furnished Multifamily, Multifamily with Section 8 voucher tenants, Multifamily with HAP contracts, Multifamily with IRS Section 42 tax credits.<\/p>\n Eligible Manufactured Housing Communities<\/strong> (MHCs; also known as Mobile Home Parks):<\/span>\u00a0MHCs with up to 20%-25% landlord-owned homes and MHCs with single-wide homes.<\/p>\n Eligible Retail:<\/span><\/strong>\u00a0Malls, Anchored Multi-tenant Retail, Neighborhood Multi-tenant Retail, Unanchored Multi-tenant Retail, Single-tenant Retail (with long-term — 5-plus years — to a credit tenant and high likelihood of lease renewal).<\/p>\n Eligible Office:<\/span><\/strong>\u00a0Multi-tenant Suburban Office, Multi-tenant Urban Office, Single-tenant Office (with long-term — 5-plus years — to a credit tenant and high likelihood of lease renewal), Government Office with no lease cancellation clauses.<\/p>\n Eligible Industrial:<\/span><\/strong>\u00a0Multi-tenant Warehouse\/Distribution, Multi-tenant Light Industrial, Single-tenant Industrial (with long-term — 5-plus years — to a credit tenant and high likelihood of lease renewal), Multi-tenant office\/warehouse (office in front\/warehouse in rear).<\/p>\n Eligible Hotels:<\/strong>\u00a0<\/span>Full-service, Select-service, Limited-service and Extended-stay hotels that are Mid-scale and higher franchised hotels as defined by Smith Travel Research (click here<\/span><\/a>\u00a0for STR hotel chain scales).\u00a0Independent hotels located on\/near beaches, Boutique hotels in urban\/suburban locations with ADR over $100\/night.<\/p>\n Eligible Self-Storage:<\/span><\/strong>\u00a0Independent and franchised self-storage, climate controlled and non-climate controlled.<\/p>\n [\/vc_toggle][vc_toggle title=”What Types of Properties Are Not Eligible for Commercial Bank Loans?” custom_font_container=”tag:h6|text_align:left” custom_use_theme_fonts=”yes” el_id=”1542318417489-fe12dac9-ffcb” use_custom_heading=”true”]<\/p>\n Construction<\/strong> and substantial rehabilitation projects<\/strong> are generally not eligible for commercial bank loans.<\/p>\n Healthcare<\/strong> (defined as real estate with meals and health services provided) are generally not eligible for commercial bank loans.\u00a0 Properties with well below-market occupancy are not eligible for Commercial Bank loans (but may qualify for a bridge loan<\/a>).<\/p>\n [\/vc_toggle][vc_toggle title=”What Loan Amounts Are Available for Commercial Bank Loans?” custom_font_container=”tag:h6|text_align:left” custom_use_theme_fonts=”yes” el_id=”1542318462950-0ca40d8e-773c” use_custom_heading=”true”]Commercial bank loans are available for loan amounts from $1 million to $100-plus million<\/strong>.\u00a0 Loan amounts from $500,000 to $1 million are available on a case-by-case basis.[\/vc_toggle][vc_toggle title=”Can Mezzanine Financing Be Added to a Commercial Bank Loan to Increase Leverage?” custom_font_container=”tag:h6|text_align:left” custom_use_theme_fonts=”yes” el_id=”1542318511933-28b17cbc-2514″ use_custom_heading=”true”]Yes. In certain instances, secondary financing is allowed to be subordinate to a commercial bank loan.[\/vc_toggle][vc_toggle title=”What Property Condition Is Required to Be Eligible for a Commercial Bank Loan?” custom_font_container=”tag:h6|text_align:left” custom_use_theme_fonts=”yes” el_id=”1542318555173-f92d1d66-cd18″ use_custom_heading=”true”]<\/p>\n Class A, Class B or Class C<\/strong> properties are eligible for commercial bank loans.<\/p>\n Classifying commercial property is subjective, but some general criteria that may qualify a property for a commercial bank loan include the following: less than 20 years old or recently renovated; limited or no deferred maintenance; and\/or competitive within its market.\u00a0The best way to qualify a property is to contact\u00a0your ValueXpress representative<\/a>\u00a0with the property address. Together, you can consult Google earth to look at the property and determine its eligibility.<\/p>\n [\/vc_toggle][vc_toggle title=”What Is the Demographic Criteria for Commercial Bank Loans?” custom_font_container=”tag:h6|text_align:left” custom_use_theme_fonts=”yes” el_id=”1542318602202-d954dc79-de21″ use_custom_heading=”true”]<\/p>\n Commercial bank loans are available for properties in all 50 states and Puerto Rico<\/strong>.\u00a0Properties must be located in a major metro, secondary or tertiary location.<\/p>\n Properties located in a rural area (except for hotels located on a major highway) are generally not eligible for commercial bank loans.\u00a0 Determination of a rural location is subjective, but one general criteria is a population of less than 20,000 persons.\u00a0 Please contact\u00a0your ValueXpress representative<\/a>\u00a0with the property address to determine if the property is ineligible for a commercial bank loan due to its potential rural location.<\/p>\n [\/vc_toggle][vc_toggle title=”What Are the Costs to Obtain a Commercial Bank Loan?” custom_font_container=”tag:h6|text_align:left” custom_use_theme_fonts=”yes” el_id=”1542318654580-5217a2a8-e950″ use_custom_heading=”true”]<\/p>\n The majority of the costs to obtain a commercial bank loan is the fees for an appraisal, property condition report, and Phase I environmental site assessment and lender\u2019s legal charges.<\/p>\n In addition, typical commercial real estate loan closing costs include title insurance costs, survey charges and borrower counsel fees.\u00a0 The typical expense deposit to cover these costs is $10,000-$15,000.\u00a0 Should the borrower cancel the loan during the underwriting and closing process, any unspent deposit will be returned to the applicant.<\/p>\n [\/vc_toggle][vc_toggle title=”What Are the Prepayment Penalties for a Commercial Bank Loan?” custom_font_container=”tag:h6|text_align:left” custom_use_theme_fonts=”yes” el_id=”1542318695174-0388b416-a80a” use_custom_heading=”true”]<\/p>\n The prepayment penalty for a commercial bank loans is typically a declining structure<\/strong>, such as 5%-1% for years 1-5 with a 5-year term.<\/p>\n This means the prepayment penalty is 5% in year 1, 4% in year 2, 3% in year 3, 2% in year 4 and 1% in year 5.\u00a0 In year 5, a window of 3-6 months is available to prepay without penalty.<\/p>\n [\/vc_toggle][\/vc_column_inner][vc_column_inner width=”1\/3″ css=”.vc_custom_1542304507503{padding-left: 100px !important;}”][vc_single_image image=”1555″ img_size=”full” alignment=”right” css_animation=”right-to-left” el_class=”overlap” css=”.vc_custom_1545168430931{margin-left: -200px !important;}”][vc_column_text css=”.vc_custom_1545181727340{margin-left: -170px !important;padding-top: 10px !important;padding-right: 15px !important;padding-bottom: 10px !important;padding-left: 15px !important;background-color: #2e3192 !important;}”]<\/p>\n Wingate by Wyndham [\/vc_column_text][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row full_width=”stretch_row” css=”.vc_custom_1542371340445{background-color: #4fad26 !important;}”][vc_column][vc_column_text]<\/p>\n Click on one of the documents below to view it as a PDF. You can download documents by clicking the “download” button in the upper right hand corner of the PDF reader or by right-clicking on the document and selecting “Save As PDF.”<\/span><\/p>\n [\/vc_column_text][vc_row_inner][vc_column_inner width=”1\/3″][vc_icon icon_fontawesome=”fa fa-file-pdf-o” color=”white” size=”lg” align=”center” css_animation=”bottom-to-top” link=”url:http%3A%2F%2Fwww.valuexpress.com%2Fwp-content%2Fuploads%2F2018%2F11%2Fchecklistforcommloanssubm.pdf||target:%20_blank|”][vc_column_text css_animation=”bottom-to-top”]<\/p>\n Commercial Bank Loan [\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/3″][vc_icon icon_fontawesome=”fa fa-file-pdf-o” color=”white” size=”lg” align=”center” css_animation=”bottom-to-top” link=”url:http%3A%2F%2Fwww.valuexpress.com%2Fwp-content%2Fuploads%2F2018%2F11%2FBasicScheduleofIndebtedness.xls||target:%20_blank|”][vc_column_text css_animation=”bottom-to-top”]<\/p>\n Schedule of [\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/3″][vc_icon icon_fontawesome=”fa fa-file-pdf-o” color=”white” size=”lg” align=”center” css_animation=”bottom-to-top” link=”url:http%3A%2F%2Fwww.valuexpress.com%2Fwp-content%2Fuploads%2F2018%2F11%2FSponsor-BorrowerCertificationVE.pdf||target:%20_blank|”][vc_column_text css_animation=”bottom-to-top”]<\/p>\n Property and [\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner width=”1\/3″][vc_icon icon_fontawesome=”fa fa-file-pdf-o” color=”white” size=”lg” align=”center” css_animation=”bottom-to-top” link=”url:http%3A%2F%2Fwww.valuexpress.com%2Fwp-content%2Fuploads%2F2018%2F11%2Fstr_chain_scales-summary-2.pdf||target:%20_blank|”][vc_column_text css_animation=”bottom-to-top”]<\/p>\n STR Hotel [\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/3″][vc_icon icon_fontawesome=”fa fa-file-pdf-o” color=”white” size=”lg” align=”center” css_animation=”bottom-to-top” link=”url:http%3A%2F%2Fwww.valuexpress.com%2Fwp-content%2Fuploads%2F2018%2F11%2FValueXpress Hotel Questionaire.pdf||target:%20_blank|”][vc_column_text css_animation=”bottom-to-top”]<\/p>\n
\n<\/strong>Chattanooga, TN<\/span>
\n$30,000,000 Commercial
\nBank Loan<\/span><\/p>\nWHAT ARE COMMERCIAL BANK LOANS?<\/h2>\n
WHEN ARE COMMERCIAL BANK LOANS A GOOD FIT?<\/h2>\n
\n<\/strong><\/span>Chattanooga, TN
\n<\/span>$5,200,000 Commercial Bank Loan<\/span><\/p>\n\n
\n
\n<\/strong>JFK Airport, NY<\/span>
\n$9,000,000 Commercial Bank Loan<\/span><\/p>\nImportant Documents<\/span><\/h2>\n
\nDocument Checklist<\/a><\/span><\/strong><\/span><\/p>\n
\nIndebtedness<\/strong><\/span><\/a><\/p>\n
\nPrincipal Certification<\/strong><\/span><\/a><\/p>\n
\nChain Scales<\/strong><\/span><\/a><\/p>\n