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Commercial Mortgage Broker Service

P.O. Box 506
Brice, OH 43109
Office: (614) 759-8500
eFax: (614) 340-7255

commercialmortgage@kennardbrown.com

We charge no upfront fees, our broker fees are taken from the proceeds of the loan! RealtyRates.com RealtyRates.com

[Apply for a Commercial Mortgage TODAY! ] [ Broker Fees ][ Current Interest Rates ] [ Forms ]
[ Summary of Loan Programs ] [ Small Business Administration Loans ] [ Major Property Loan Documentation ]
[ Commercial Finance Loan Documentation for $250,000+ loans ] [ Construction Loan Documentation ]
[ International Loans ][ Co-Broker Agreement ]

As part of our business consulting services, we act as a broker for originating USA Small Business Loans & International Loan requests on commercial and industrial income producing projects for refinance, working capitol, purchase or new construction at competitive rates & terms. We only get paid if we produce and we do not charge an up-front fee for our broker services.

Yet, our lenders charge fees. The fees & costs are reasonable and are related to obtaining your loan.

General Lender Fees:

  • $1,000 application SBA lender fee (refunded if loan is not approved)
  • Commitment and Rate Guarantee Fee
  • Third Party Reports

    You're responsible for any out-of-pocket expenses (for example: title insurance, survey and recording fees).

    If you have excellent or above average credit and you are looking for conventional Small Business Loans or Commercial Real Estate Loans, then you'll receive the best rates & terms.

    The Small Business Administation 7(a) Loan is the best option for individuals with average or poor credit. Your credit score should be a minimum of 650. You can get decent rates & terms with poor or average credit by obtaining a Small Busines Administation 7(a) Loan. The loan amounts are from $200,000 to $2,000,000.

    Please provide an Executive Summary to begin our evaluation of your project in the space provided on this form. If you don't have an Executive Summary or Business Plan then you definately need to write one to obtain a loan for a NEW business. Please click Ultimate Business Planner.

    What we need for prequalification for SBA loans if you already have a business:

  • Three years Business Income Tax returns
  • Three years Personal Income Tax returns
  • Existing Loan information (if you need to refinance)

    New Business:

  • Three years Personal Income Tax Returns
  • Business Plan
  • Minimum of three years of experience in the business' industry documented by W2s.

    Other requirements:

  • For a start-up, we need for the borrower to put down 20% to 30%.
  • For all existing businesses, we need the borrower to put down at least 10% to 12%. We can do loans in cases where the seller contributes to the downpayment of the loan (For example, the borrower has to put down 20% for the loan; the seller contributes 10% and the borrower contributes 10%).

    What we need for pre-qualification for Loans over $2,000,000:


    *You must have Adobe Acrobat Reader to download and print the following documents.

    Please complete the following forms based on your loan request and FAX to (772) 679-0140 for pre-qualification.

    MAJOR PROPERTY LOANS REQUIRED DOCUMENTS FOR PRE-QUALIFICATION

    These are projects that are for refinance or purchasing of income producing properties

  • Loan Summary Sheet
  • Major Property Worksheet

    COMMERCIAL FINANCE LOANS REQUIRED DOCUMENTS FOR PRE-QUALIFICATION

    These loan requests MUST involve real estate as collateral

  • Loan Summary Sheet
  • Commercial Finance Worksheet
  • Commercial Finance Loan Application Sheet

    CONSTRUCTION LOANS FOR NEW CONSTRUCTION

    Loan Summary Sheet Major Property Worksheet Construction Loan Worksheet

    SUMMARY OF LOAN PROGRAMS

    Our lenders provide small business loans from $200,000 to MILLIONS OF DOLLARS or MORE for USA projects-$10,000,00 or more for International projects! It all depends on the type of project, net worth and/or collateral. If you are willing to accept 75% to 85% financing based on the value of a MAJOR PROPERTY or a CONSTRUCTION project through any of our conventional loan sources, then you have a good chance of getting financing. We can try to find lenders that will offer a 85% LTV (Loan To Value of the Property), yet it will be easier to find lenders that will give you a 80% LTV or 75% LTV. So, be prepared to accept at least 75% LTV on income producing properties.

    Small Business Administration Loan Programs

    The Small Business Administration 7(a) loan provides $200,000 to $2 million dollars.

    For the Small Business Administration (SBA) 7(a) program, you must put down 20% to 30% down for NEW businesses; 10 to 12% down for existing businesses. The interest rate is variable and does not exceed Wall Street Journal Prime Rate+2.75%. The rate is adjusted quarterly only if the prime rate changes. In some cases, we can offer fixed rates. The SBA 7(a) program offers a 25 year fully amortizing terms with no call dates or balloon payments.

    SBA Combination Loan

    You can get funds for working capital, equipment and/or inventory via a SBA loan. Yet, you must purchase income producing property in addition to using the loan for working capital, equipment and/or inventory.

    The following are the types of commercial real estate deals that the SBA can do:

  • Start-Ups
  • Renovation
  • New Construction
  • Expansion
  • Refinance of Existing Debt

    Types of Properties

  • Owner-Occupied Office Buildings
  • Restaurants
  • Truck Stops, C-Stores & Gas Stations
  • Manufacturing Buildings
  • Hotels/Bed & Breakfasts
  • Manufacturing Companies
  • Medical and Dental Practices
  • Childcare Centers

    You don't have to have A+ credit to get a SBA loan because the government guarantees the loan. Yet, you must not have filed bankruptcy in the past 10 years and you must not have any felony arrests. Your credit score must be a minimum of 650. Your historical or projected cashflow must show the ability to cover all fixed obligations 1.20 to 1.5 times. You must also have experience in the industry that your business is in. The experience must be verified via W2s from former employment.

    You must occupy 51% of the square footage of the building for existing businesses and you must occupy at least 66% of the square footage of the building for new construction. To simply, you must occupy and operate a business in the property that you wish to purchase.

    If you need a SBA Loan, then please contact us at (614) 759-8500 or complete our online service request form.

    Summary of Rates, Fees & Terms

    LTV: 75% to 85%
    Loan term: 1 year to 25 years
    Amortization: 0 to 30 years
    Interest rate: 7% to 12%
    Interest rate for most Construction Loans: 1% to 2% over prime
    Broker's Fee: 1% to 2% (Broker fee is taken from the proceeds of the loan at closing)
    Lender's Fee: 1% to 3% or more based on the type of project
    Additional Lender Fees:
    - Commitment and Rate Guarantee Fee
    - Third Party Reports

    Note: Additional lender fees vary based on the lender and the type of project.

    Closing: 60 days except for Bridge Loans (14 days)

    We can locate funding for: MAJOR PROPERTIES

    Loan Amount (fixed) for Major Metropolitan areas: $2 million and up
    Loan Amount (adjustable): $500,000 and up
    Loan Amount (fixed): $250,000 to $2,000,000

  • Office Buildings
  • Industrial Buildings
  • Health Care Facilities
  • Shopping Cetners
  • Mobile Home Parks
  • Medical Office Buildings
  • Hotels/Motels
  • Apartments

    COMMERCIAL FINANCE

    Loan Amount: $250,000 and up

    Note: LTV can be as low as 50% based on your credit history & net worth

  • Working Capital
  • Purchase of Equipment
  • Expansion of merger of business
  • Consolidation of debts
  • Accounts Receivable
  • Inventory

    CONSTRUCTION LOANS

    Loan Amount: $250,000 and up

    Note: Some construction loans may require a takeout commitment

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    We require that the you provide the following documentation once you're prequalified for funding:

    FOR MAJOR PROPERTY LOANS

    Note: The amount of the loan requested must not be more than 75% of the appraised value of the project, or 75% of the purchase price if being purchased.

  • Purchase Agreement
  • Resume of Principals
  • Financial Statement of Principals (dated and signed within the last 90 days)
  • Last 2 years PERSONAL income tax returns of principals
  • Current Financial Statement of corporation or parternship (if applicable)
  • Last 2 years corporate or partership tax returns (if applicable)
  • 2 years Profit & Loss Statement of the Seller
  • If multi-family apartment, include a Rent Roll (a list of all tenants and monthly rents)
  • Project lease information (if property is leased)
    a) name
    b) rent
    c) term
    d) sample of lease
  • If ground is leased, copy of lease and Subordination Agreement
  • Signed Broker Fee Agreement

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    FOR COMMERCIAL FINANCE LOANS

    Note: We are only accepting commercial real estate as acceptable collateral for a commerical finance loan. Additionally, you must supply some money into the deal, and take some risk in order to obtain financing. You shoud have a personal net worth of approximately the same amount as the loan request. You must show lenders that by obtaining a loan you will better your financial position.

  • Purchase Agreement (if being purchased)
  • Current Business Financial Statement
  • Current Profit and Loss Statement
  • List of accounts receivables
  • List of equipment (including type, serial #, and cost)
  • List of inventory and supplies
  • A 3 year income projection
  • Two years personal & business tax returns
  • M.A.I. Appraisal
  • Signed Broker Fee Agreement

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    FOR CONSTRUCTION LOANS

  • Photographs (color photographs or artist's rendering of the project, in not in appraisal)
  • Maps of the area and property
  • Proforma (a projected profit and expense for 3 years)
  • Construction Cost-Breakdown (a detailed cost analysis of hard and soft costs including a copy of all bids)
  • Construction contract (signed and dated by contractor, including his/her resume)
  • Appraisal (an original M.A.I. appraisal with color pictures, showing the income, market and cost approach to value)
  • Plans and specifications
  • Marketing data (advertising, sales staff and promotions to be used in achieving income objectives)
  • Feasibility (an analysis of the feasibility of the project, including market, location, cost and income of the project)
  • Preliminary title report
  • Leases (if project is to be leased, include amount of preleasing and a sample copy of the lease)
  • Estimated starting and completion dates
  • Resume of developer
  • Current Financial Statement of principals
  • Last 2 years personal tax returns of principals
  • Signed Broker Fee Agreement
  • Other Documents
    a) Land deed, or purchase or option contract showing ownership
    b) If ground is leased, a copy of lease and subordination agreement
    c) Management contract, if project will be managed professionally
    d) Details of present financing on property, including copy of existing mortgage
    e) Articles of incorporation, partnership agreements

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    INTERNATIONAL LOANS

    Note: You loan request must be a minimum of 10 million U.S. dollars.

    We can provide funding for the following international locations:

    Japan, Central Europe, Germany, Spain, France, Sweden, UK, Australia, Canada and Mexico

    Please complete our online service request form so that we can locate the appropriate lender for your project.

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    BROKER FEES

    The following is our commission schedule:

    LOAN AMOUNT & PERCENTAGE FEE CHARGED

  • $200,000.00 to $5,000,000.00 - 1% to 2%
  • over $5,000,000.00 - 1/2% to 2%

    Note: The above fee percentages can change based on the type of loan package that is prepared for the client. Some lenders charge higher fees than others. This can affect the broker's fee percentage.

    You will be required to sign our CO-Broker Fee agreement when it is determined that your project has a good chance of obtaining funding through our lending sources.

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    CO-BROKER AGREEMENT

    For value received Kennard L. Brown Co. (BROKER) hereby promises and agrees to pay (CO-BROKER) a commission (referral fee) of 50% of BROKER fee earned from the principal amount of the Loan.

    *For example (the actual principal amount could be higher or lower):

    Loan Amount: $2,000,000
    Broker Fee: 1% of Loan Amount = $20,000

    Co-Broker Commission = $10,000 (50% of $20,000)

    It is understood that the CO-BROKER shall earn this commission only when the loan is finalized and the brokerage fee is disbursed.

    Co-Brokers must sign our Co-Broker Fee agreement when it is determined that your project has a good chance of obtaining funding through our lending sources.

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    FORMS

    *You must have Adobe Acrobat Reader to download and
     print the following documents.

    COMMERCIAL LOAN WORKSHEET

    COMMERCIAL LOAN APPLICATION

    CO-BROKER AGREEMENT

    MAJOR PROPERTY WORKSHEET

    RENT ROLL

    CONSTRUCTION LOAN WORKSHEET

    CONSTRUCTION COST-BREAKDOWN

    LOAN SUMMARY SHEET

    PERSONAL FINANCIAL STATEMENT

    PROFIT-LOSS STATEMENT

    Small Business Administration, Small Business Loans and Conventional Commercial Real Estate LoansWe can locate funding from $200,000 to MILLIONS of dollars!

    Apply for a Commercial Mortgage TODAY and we'll do the best we can to find the right type of lender for your project.

    ©2008 Kennard L. Brown Co.
    commercialmortgage@kennardbrown.com