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COMMERCIAL REAL ESTATE PROPERTY
COMMERCIAL REAL ESTATE
Multifamily Properties
Residential buildings that vary by location (urban or suburban) and may be further classified by structure: high-rise, mid-rise, or garden-style.
Leases are typically short term and adjust quickly to market conditions. Considered to be one of the more defensive investment types within commercial real estate. Multifamily properties are still subject to competitive price and occupancy pressures from newer construction.
Retail Properties
Everything from small shopping centers, strip malls, and outlets to large power centers with a "category-dominating" anchor tenant.
These properties tend to be widely influenced by the state of the national economy. Economic indicators as employment growth and consumer confidence levels affect these property types. Local factors include the property location and its traffic flow; population demographics; and local household incomes and buying patterns are important factors. Leases tend to be long term, which means that after a while lease rate may lag behind current market rates, and rate increases normally need to wait until lease expirations.
Office Buildings
This property could be high-rise multi-tenant structures in city business districts to mid-rise single-tenant buildings in suburban areas.
Rents and valuations are influenced by employment growth and the region's economy. Credit quality of tenants isa key component; re-leases of office space typically require some lead time to consummate. Office properties normally have longer-term leases that can drag behind current market lease rates. Significant "step-ups" or "step-downs" of rental rates may occur when office leases expire.
Industrial Properties
These properties include manufacturing facilities, warehouse and distribution centers, research & development properties and flex-space.
Manufacturing and R&D properties tend to be build-to-suit buildings that can be difficult to "re-tenant" without extensive modifications, while warehouses and distribution centers can be more generic buildings. Industrial properties are also influenced less by local job growth, but more by larger economic drivers such as global trade, imports, exports and corporate inventory levels.
Self-storage facilities, mobile home parks, student housing and hospitality offer excellent commercial opportunities. Self- storage are usually retrofitted warehouses.
Low cost, short-term loans
- Rates as low as 7.50%*
- No application fees
- No appraisal
- Closing fees as low as $999
- Close in as few as 10 days
- Online access to your loans
- Dedicated Experience Manager
Each investor we work with is unique and no two deals are alike. We will work together to support your investment goals. And, as your business grows, your rates and benefits will improve as well. If you are an experienced real estate investor, we will take that into account and customize a plan for your thriving business model.
Long-term financing for rental properties
- Finance a new purchase, refinance a property you own, or free up cash in your rental portfolio to gain asset appreciation and cash flow.
- Our capital is backed by institutional securitization — so it is reliable and available at competitive rates as low as 5.375%. *
- Forget searching for pay stubs and old W-2s. Our platform eliminates these time-consuming, manual tasks.
- Variety of rental loan options, our dedicated team will help maximize your ROI and create a simplified experience.
Flexible loan options
Our flexible long-term rental financing is designed to help investors reap the benefits of both property appreciation and rental income with rental property interest rates as low as 5.375%. *
- 5/1 ARM (fully amortizing)
- 7/1 ARM (fully amortizing)
- 30-Year fixed
- Interest-only options
Whether you are adding your first rental property or accumulating multiple rentals into a large, diversified portfolio, Asset Tree Capital can help guide you through which rental lending strategy best fits your needs and help you grow.Avoid the hassle of hopping from bank to bank with low total exposure limits and large required down payments. With competitive rental property loan rates, as low as 5.375%* and with up to 80% LTV on our rental loan products, we make it easy to invest in rental properties.
COMMERCIAL LOAN TYPES
Fix-and-flip short-term financing
Asset Tree Capital provides fast, robust, and reliable capital for real estate investors competing against cash to seize investment opportunities.
Low rates and fees
Our capital is backed by institutional securitization — so it is dependable and available at competitive rates as low as 7.50%. *
Fast and uncomplicated process
Forget searching for pay stubs and old W-2s. Our platform eliminates time-consuming tasks, speeding up the process to close.
Flexibility and support
With a variety of loan terms and options, our dedicated team will work to maximize your return on investment (ROI) on each project.
Loans for single-family, 2-4 units, condominiums, and PUDs
- Loans from $50k - $3MM
- 12,18- & 24-month terms interest-only options
- Up to 90% of purchase price
- Up to 75% of after-repair value
- 100% of rehab cost
Find deals and make offers with confidence
Do not settle for banks draining your funds with down payment requirements, having to borrow against your 401k, or working with other lenders’ inconsistent leverage options. Our bridge loans make it easy to purchase and rehab investment properties.
- With rates as low as 7.50%, * and a variety of options, our fix & flip/bridge loans will make sure you are not forced to turn away from hard-to-find deals due to lack of “sure” money. Asset Tree Capital will keep your focus on finding your next property, not how to fund it.
Single-family, PUDs, and 2–4-unit rentals
- Rates as low as 5.375%*
- No hard credit pulls
- Individual and entity borrowers eligible
- No prepayment penalty after year 3
- Cash-out up to $500k after 4 months
General Loan Terms:
- Loan Term - 12 or 18 or 24 Months
- No Prepayment Penalty
- Interest-Only (IO) Payments
Borrower Experience (based last 24 Months)
Real Estate Transactional Experience
Asset Tree Capital funding sourec will conduct diligence on the borrower’s historical real estate transactional experience and tier borrowers based on qualifying exits per table below. No experience verification is performed for Standard borrowers.
| Pro | Standard | |
| # Qualifying exits in last 24 months | 5 or more | 0-4 |
A qualifying exit can be either:
- property sold within the 24 months preceding application submit date, which was acquired no more than 36 months prior to exit.
- property acquired and rehabbed and converted to permanent financing and held for rental, where conversion to permanent financing occurred within the 24 months preceding application submit date and the property was acquired no more than 36 months prior to conversion to permanent financing.
- ‘Permanent financing’ is defined as a non-bridge loan with a term of >= 36 months.
- Days between purchase and sale must be >30 to count as an exit
- Exits must be >=$50,000
- Pending sales do not count as qualified exits
For entities that have been in existence for more than 180 days, the experience of members added within 180 days from application submission is disqualified.
To utilize qualifying exits from a non-borrowing entity or individual, the following requirements apply:
- Entity - If a property exit occurred under an affiliate entity, the guarantor or a minimum 25% member of the borrowing entity must own at least 25% of the affiliate entity.
- Individual - If a property exit occurred under an individual, then the individual must be the guarantor or a minimum 25% stakeholder in the borrowing entity.
Credit Score (Minimum and Preferred Pricing)
- Preferred Pricing: 720+ FICO of Guarantor makes loan eligible for lower interest rates
- Minimum Credit: 640 Minimum FICO of the Guarantor
- Guarantor needs to be at least 25.00% owner of LLC or S-Corp
Project Return (ROI)
All loans with rehab projects must meet a minimum ROI to qualify for financing. ROI calculation by transaction type:
- Purchase & Delayed Purchase Refinance with Rehab: ARV / (Cost Basis + Rehab cost)
- Seasoned & Platform Refinance with Rehab: ARV / (AIV + Rehab cost)
Loan Types and Loan Leverage
- Purchase: subject property acquired with Asset Tree Capital financing sources, with (or without) Rehab
- Delayed Purchase Refinance: subject property was acquired less than or equal to 180 days prior to application submit date.
- Seasoned Refinance: subject property was acquired greater than 180 days prior to application submit date.
Real Estate Group Investing
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Real Estate Group Investing Provides Returns Without Managerial Hassle
You want to start investing in real estate, but you do not have enough capital to purchase a quality commercial property.
- concerned about placing a large sum of capital into a single piece of real estate
- do not want to personally guaranty a mortgage loan
- take on the management and maintenance responsibilities of property ownership
- seen people renovating and flipping houses on tv
- do not have the time or expertise to try it yourself.
Investing in real estate group investing enables you to acquire a single or diversified portfolio of properties with your capital, without having to undertake any managerial burdens.
What is a Real Estate Group Investing?
Real estate group investing is an aggregation of capital from multiple participants to invest together in real estate opportunities.
Group management structures each group investment, raises the capital, secures any necessary financing, and manages the assets. The group management provides updates on the project and its finances, as well as distributions of available cash flow and proceeds from any sale or refinance of the underlying properties.
Real Estate Group Investing is a group of friends and family pooling their funds together to make an investment. Asset Tree Group management are real estate professionals.
What does a Real Estate Group Invest In?
A real estate group is formed to acquire an individual property or a portfolio with common attributes.
Our groups often provide an opportunity to invest in larger or more exclusive properties.
Many investment properties may be extremely difficult for you to acquire independently. Sellers have greater confidence that a real estate company with a track record. As a group there is more equity and borrowing power than an individual, which enables the group to purchase more expensive properties, or a portfolio of properties. Real Estate Groups may be able to obtain favorable financing terms not generally available to individual borrowers, ultimately creating higher returns for the same property.
Real Estate Groups offer a way to diversify your real estate holdings. Instead of investing all your capital in a single property, you can spread your funds among multiple properties.
When the opportunity presents itself, investments are made in, medical offices, student housing, industrial buildings, drugstores etc.
Investing with the Asset Tree real estate group doesn’t require property management responsibilities, normally doesn’t require personal liability for any mortgage on a property other than the invested capital.
What is the Exit Strategy?
Group management decides how long to hold the property, how it will be disposed of, and the expectations for return of principal at the end of the investment period.
It is possible to lose your entire equity investment if the project does not perform as expected, and there may be obligations to contribute additional capital under certain circumstances.
It is important for investors to review the project information carefully, and to consult with their own financial, legal or tax advisors before investing in a real estate group.