Private Money Commercial Loan Rates

Individual Loan Pricing

Each loan is priced individually, depending on the safety and affluence of the area, the attractiveness of the property, the age of the property, the loan-to-value ratio, the size of the loan, whether the loan is a refinance or a purchase money loan, the income and wealth of the borrower, and the credit of the borrowers.

Blackburne & Sons Realty Capital Corporation (est. 1980) is seeking the following types of commercial loans:

Loan Types

  • Permanent first mortgage loans
  • Bridge loans in a first mortgage position
  • Land loans
  • Sorry, no construction loans.

Minimum Loan

  • $100,000

Maximum Loan

  • $2,500,000 (maybe up to $3,500,000)

Acceptable Properties

All standing commercial properties, plus land loans, including:

  • Multifamily
  • Office
  • Retail buildings
  • Strip centers
  • Shopping centers
  • Industrial buildings
  • Warehouses
  • Mixed use buildings
  • Self storage
  • Hotels
  • Motels
  • Commercial condominiums
  • Industrial condominiums
  • Assisted living
  • Residential care homes
  • Day care facilities
  • Gentlemen’s clubs
  • But no churches. We’ve had a 100% default rate on churches.

Lending Area

  • Nationwide (Crime rate of the neighborhood must not exceed 125% of the national average)

Amortization

  • If the property is less than 50 years old:  30 years
  • If the property is older than 50 years:  25 to 15 years

Loan Term

  • 15 years

Points

  • 2.5 – 4 points typically

Prepayment Penalty

  • None

Application Fees / Upfront Fees

  • None

Loan-to-Value Ratio

  • Purchase money loans:  75%
  • Refinances:  65% to 70%
  • Land loans: 25% to 50% (usually 40%)

Interest Rate

  • 8.9% to 10.9% in California
  • 10.9% to 13.9% outside of California