What is an "Alt A" Commercial Loan?

[Karen Schimpf]

As you look at the economy trying to rebound, you see many positive signs. But one positive sign is the re-emergence of "Alt A" lending. After Lehman went down and, for much of 2009 there was very little lending going on. A few really strong banks would dabble in what we would call "A" paper-strong credit and cash flow commercial loans-rock solid traditional conventional loans. There were some private money guys still lending but, they were very limited and cautious. Private money would be what we can call "C" paper. Since 2009, both of these types of loans have strengthened each year with more and, more players coming into the space. Your choices were either qualify for the best pricing or, end up with C paper which are typically rates of 10% or higher and, multiple points. Both of these are going strong with ample money available for deals in 2014.

Give me a CALL TODAY at 512-354-5949 to discuss your deal.

Over the last year, a few companies have come forward in what I call the "Alt-A" space. These are just miss 'A' paper loans. A year ago there was really only one source in the space and, they were cautious. About 11 months ago another lender came into the space and, with another player coming into the space in the last month, we now have a fertile marketplace for these "just miss loans". Rates on these loans are typically 6-8% and, often just 1 or 1.5 points.

Examples of the types of deals these lenders will do:

• Small foreign national deals up to 75% LTV
• Deals that just got leased up but, have no historical cash flow
• Short-term lease transactions where there is the chance of significant turnover in the next 5 years
• Retail spaces with mostly local tenants
• Cash out to 75% on investor deals
• Purchase money for apartments up to 80%!

If you want your loan closed, give me a CALL TODAY @ 512-354-5949

And much more! Basically, if you have a loan that makes sense, is solid, but not quite good enough for the banks, we can get your deal closed. Instead of paying 12% and 4 points, you may be at 6% and 1 point-a MONSTER difference. Since I can review your loans and will get you pre-approved within 72 hours at NO COST TO YOU, you risk NOTHING sending the deal into me. This financing will help a lot of good people qualify for purchases or refinances and, should further improve the pick up we are seeing in many sectors of the economy.

IF YOU OR ANYONE YOU KNOW MAY NEED COMMERCIAL FINANCING, GIVE ME A CALL TODAY AT 512-354-5949 I will review for free and if approvable, have you terms in writing in 72 hours. Give me a call today!