Multi-Family Value Add/Hotel Conversions – NCW Real Estate Funding Group

Multi-Family Value Add

Multi-Family Value Add/Hotel Conversions

Term (up to)

24 months

Purpose

Acquisition or refinance of a multifamily property with the intent to renovate and stabilize

Property Type

Existing 5+ unit multifamily or hotel conversion to multifamily

Maximum Loan Amount

Min Loan Amount $500,000
Max Loan Amount Per Unit $3,000,000
Max Loan Amount $20,000,000

Total Units Per Loan

Multiple properties per loan are allowable if in the same jurisdiction

As Repaired / Improved LTV

70%

Day 1 LTV

65%

LTC

85%

Monthly Payments

Interest Reserve is required for the full term. Monthly Payments with an additional 0.50% Origination Fee and proof of >10% liquidity

Funds At Closing

For acquisition and reimbursement of Construction Costs.

Sizing Requirements

Minimum DSCR 1.25x using: o 0.250% over the provided take-out letter by a Builders Capital approved provider, fully amortizing over 30-Year Term o 30% minimum OPEX
PACE Financing allowed with max CLTC 80% and no tail after the payback of PACE financing. If condo, PACE requires 30% per unit paid with each sale.

General Requirements

All lending for investment purposes only
Interest calculated on drawn balance unless Gross Interest
is selected
Construction draws based on inspection report or
supporting documentation
1st Lien Position always
Evidence of vertical permits ready for pick-up or in file prior
to closing. No exceptions.

Borrower Requirements

No Individuals. Borrower must be an LLC or Corporation.
Minimum 700 credit score. Exceptions considered with compensating factors.
Must have demonstrated experience of similar property types and size in the last 18 months. Demonstrated
experience is evidenced of completed and sold or stabilized inventory. GC experience may not be counted unless the
GC becomes a guarantor of the project.
Liquidity 5%. May not included earnest money deposited
towards the sale of the finished project.
Personal Guarantee preferred; Limited Guarantee considered with 50bps fee paid at closing (may not be
rolled into the loan balance).
Maximum Guarantor Loan Commitment with us is $50,000,000. Exceptions considered for large regionals or repeat borrowers.

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