Commercial Questions

I have been turned down at my local bank. Can you help?
Perfect candidates for a Satori Signature Loan Program are those who need financing for an income-producing or commercial property, but are unable to qualify for traditional bank financing because they’re unable or unwilling to verify income or assets:

• Clients without sufficient credit history
• Business owners who want to take cash out of their property
• Entrepreneurs and self-employed people who want to purchase a site for their business
• Real estate investors who wish to put as little as 10% down (In some cases, Satori allows CLTVs up to 100%)

What type of income verification do you require for the Satori Signature Loan Program?
Unlike banks and other conventional lenders that verify the borrower’s personal income, we can pre-approve you with a completed application that simply states your income and assets. Satori only requires verification on the property being financed. We require rent rolls and leases on properties with more than four units certified by the borrower. Our easy Stated Income/Asset process allows your self-employed clients who cannot verify all of their income to qualify for financing through Satori.

What is the Satori Signature Loan’s ideal “borrower’s profile?”
One common denominator among all our borrowers is that they have a large amount of real estate equity and an immediate need for short-term capital. They cannot or will not go through the strenuous and time-consuming underwriting process required by conventional lenders.

Why can’t I borrow more than 80% of the property value?
In many instances you can. While many borrowers are used to borrowing as much as 90%-100% of the cost of a home or even more, commercial property is different. Lenders consider commercial and investment property to be riskier and therefore will not lend as much of the property’s value. Commercial/Investment property is subject to wider fluctuations in value, more environmental contamination issues, and higher default rates than residential property. Borrower’s are generally more diligent in repaying their home mortgage than any other type of debt because their homes are literally the roof over their heads! Lenders have learned from experience that investors are much more attentive to their property and to the repayment of their commercial mortgage if they have substantial cash equity in the transaction and are therefore participating fully in the risk. Even so, in certain circumstances The Satori Signature Loan Program allows borrowers the ability to borrow up to 100% LTV.

Can you finance environmentally sensitive property types such as auto repair shops and dry cleaners?
Yes, but an environmental questionnaire must be completed and submitted with the loan package. The information is reviewed by an insurance company in order to determine whether or not the property poses an environmental risk. The cost of the premium varies depending on the loan amount and property type. However, the cost is substantially less than that of a typical Phase I environmental report. By offering this environmental screening process, the Satori Signature Loan program can finance riskier properties that many other lenders will not.

How long does the loan process usually take?
The typical transaction should be ready to close in 45 to 60 days.

Is there a penatly if I pay off a loan before its term?
Most of SSLP’s products carry what is called a ” Pre-pay Penalty” or PPP. This is a penalty assessed if a loan is paid off in full or prior to the Term outline in the loan documents. Four years and higher is typical.

Why do commercial property appraisals cost so much?
A residential property appraisal for an owner-occupied home usually only costs a couple of hundred dollars because the valuation is based primarily on the sale of comparable properties in the area. It is fairly easy to make adjustments to the value of one home to estimate the value of another. Commercial and income producing properties, however, are not as easy to compare. There are vast differences in construction, design, materials, and functions that the property serves. Also, the appraiser must base the valuation on the income stream that the property is capable of generating and the replacement cost of the structure as well as the sale of comparable properties. Commercial appraisals are more time consuming and complicated, thus they can cost up to several thousand dollars. The price of appraisals is competitive and is set by the appraiser, not the lender or broker. See if you can qualify for a commercial appraisal rebate credit with the Satori Signature Loan Program. Contact us for more information.