Real Estate Financing in Atlanta, GA and Nationwide
We offer long and short-term real estate financing in Atlanta, GA and nationwide options including acquisition, construction and development, and permanent. Our selection supports business owners who are looking to purchase new property, develop land, or fix and flip property for a profit. Our real estate financing choices vary from 1-30 years in length, with affordable rates.
Ground Up Construction Loans
We also offer short-term construction loans, which are typically 3 years in length, to finance clients’ development projects. These loans are secured by a mortgage and may be used to cover the cost of development and building construction. Funds are disbursed as needed, or as parts of the construction project are completed; disbursement may also occur per a prearranged schedule. Permanent financing is typically arranged before the construction loan is disbursed.
Our construction loans are available for the construction of new facilities or to modernize, renovate, or convert existing facilities. Funds can also be used for the purchase of fixed assets such as interior or exterior improvements; including owner-occupied buildings, street improvements, utilities, parking lot construction or repair and landscaping. We offer options with low APRs, and easy repayment plans, making our short-term construction loans perfect for many businesses.
Fix and Flip Loans
Our fix and flip loans allows real estate investors to acquire, improve, and resell a property for profit with potentially little to no money out of pocket. Typical fix and flip loans will fund up to 100% of the purchase, and repair price, so long as the loan amount is 70% or less than the appraised after repair value (ARV).
Funding is most often used for the purchase of real property, repairs, contractor fees, listing and broker fees, and other property investment facets. These short-term loans are typically repaid with proceeds from the sale of renovated properties and are usually 1-12 months in length. Our fix and flip loans are readily available to businesses with 2 or more years of experience in the industry.
Bridge or Hard Money Loans
Most commonly known as a bridge loan, these short term asset based loans are also known as a “caveat loan,” and less often, as a swing loan. The definition of a bridge loan is a short-term loan typically repaid over 3 years with interest only payments during the term and a balloon payment at the end. Business investors may use these loans to act quickly on a property or high value asset while waiting for long-term financing to come through.
To provide an example of a bridge loan, suppose a retailer owns a location on a classic main street, but wants to open a second location in a new development that offers mixed use properties for sale. The business owner could take a bridge loan utilizing their current building as collateral. During the three year term of the loan they would pay interest only, saving money necessary to purchase goods on hand, market the new location and pay employees.
As cash flow is established, the owner can refinance into long-term financing, owning two locations outright, and maybe even having apartments above the second location to sublet to renters. If instead of owning two properties, the business owner simply wants to move the business, that’s an even easier and more traditional example of bridge financing for real estate. The loan is leveraged against the first property, allowing the owner to move the business now. The owner then pays interest only until the previous location is sold, then uses the funds to pay off the bridge loan.
We provide bridge funding options to businesses who are applying for long-term loans so that they can avoid a delay in operations. With low APR, a bridge loan is typically approved for seasoned businesses with experience and a comprehensive portfolio.
Rental Loans / DSCR Loans
Our rental property loans, also known as DSCR (Debt Service Coverage Ratio) loans, are designed for real estate investors who want to finance rental properties based on the property’s cash flow rather than personal income. These loans evaluate the property’s ability to generate enough rental income to cover the mortgage payments, making them ideal for investors with multiple properties.
DSCR loans typically require a minimum debt service coverage ratio of 1.0 or higher, meaning the property’s rental income should equal or exceed the mortgage payment. These loans are available for single-family homes, multi-family properties, and small apartment buildings, with loan amounts ranging from $65,000 to $ million.
Commercial Mortgages
Our commercial mortgage loans are long-term financing solutions designed to help businesses and investors purchase, refinance, or renovate income-generating properties such as office buildings, retail centers, warehouses, and multifamily units. These loans are secured by the commercial real estate itself and offer flexible loan structures, amortization periods, and interest rates to support your business growth and real estate investment goals.
Commercial mortgages provide the stability of predictable monthly payments with our 30-year fixed-rate options, or the flexibility of adjustable rates that can adapt to market conditions.
With loan amounts ranging from $100,000 to $2 million and loan-to-value ratios up to 80%, our commercial mortgage program offers competitive terms for both owner-occupied properties and investment acquisitions.
Investor Rental Portfolio Loans
Our Investor Rental Portfolio Loans are designed for real estate investors who want to finance multiple rental properties under one consolidated loan. Instead of managing separate mortgages for each property, this program allows you to bundle multiple properties together, making it easier to scale and manage your rental portfolio while building long-term wealth.
These loans are perfect for investors who want to streamline their financing. Portfolio loans are based on the properties’ cash flow rather than personal income, making them ideal for investors with multiple properties or complex tax situations. We offer both 30-year fixed and 5-year adjustable rate options with loan amounts from $100,000 to $2.5 million. Our portfolio loan program helps consolidate payments, reduce paperwork, and unlock equity across your entire rental portfolio.
Financing an Investment Property
Finding the best loan to purchase investment property can differ greatly depending on your situation and what you are looking to do with it. You can finance an investment property such as residential or commercial real estate to help you create passive income. The question becomes “what is the best way to finance an investment property?”
Many investors also ask what the best loan is for investment property, but there are multiple answers to this important question. As an investor, there are several pathways to source funding for an investment property. There are bridge loans, hard money loans, portfolio loans, fix and flip funding, redevelopment financing, and even SBA owner-occupied loans, among others. Each of these has their pros and cons, and your financial choice can vary depending on the properties you want to buy and their circumstances.
How to Finance a Commercial Property
Commercial Real Estate Financing is typically used to purchase or renovate commercial property or to refinance debt on a currently owned commercial property. To get a commercial real estate loan, most lenders will require that the property be owner-occupied which means you need to occupy at least 51% of the building, otherwise you will need to apply for an investment property loan.
To finance commercial real estate your business has several options, and we’ll cover some of the commercial real estate lending basics right here. If you have an excellent credit score, strong revenue with high margins, and a 20% or greater down payment, you may qualify for a Commercial Real Estate loan outright. If you are missing any of these, one opportunity to move fast is to choose a type of CRE Hard Money Loan called a “Bridge Loan.”
A Bridge Loan leverages owned equity in your current property to finance the quick purchase of a new property. Like other hard money loans, a bridge loan is short term, 1-3 years, with a balloon payment at the end. Most buyers choose this loan type because during the term it is interest only and can be converted to long-term financing at the end of the loan.
Commercial real estate finance also looks closely at the DSCR of real estate investment properties, whether those are funded by residential or commercial real estate investment loans. The Debt Service Coverage Ratio is an evaluation of the income a property generates as related to the amount of debt the property needs to pay off in a given period. If you owe $100,000 per year on a commercial property loan and the property generates $200,000 in revenue each year, you have a DSCR of 2, a suitable rate to cover the loan.
How to Finance a Real Estate Development
Many wonder how to finance a real estate development project and while you most likely will need to pledge some sort of capital, securing financing can make or break the feasibility of your real estate development problem. In many cases, what an investor needs to do is to work with Peach Tree Commercial Capital to develop a comprehensive real estate development financing model. That could mean several types of financing to fund acquisition of land, refinance existing properties into a portfolio loan and create the opportunity to fund new construction.
To fund a real estate development project or construction, a finance model that pays out on construction milestones can be extremely helpful. Your real estate project will have natural phases like laying the foundation, framing the building, completing electrical and mechanical systems, insulating, glazing and roofing, to name a few. Specific trades work on each stage, and it’s helpful to have an inspector cross check the work before funds pay out to complete the next stage. The project finance model protects the real estate investor and the lender from paying out for work that is going to have to be redone at greater expense some time in the future.
What is Recourse vs. Non Recourse financing?
Recourse in finance means that the lender can pursue additional assets of a borrower that defaults if the value of the debt surpasses the value of the collateral. Non recourse financing permits the lender to seize only the assets collateralized in the loan agreement. Recourse financing will have lower interest rates than non-recourse because the recourse guarantee means there is less risk for the lenders. In fact most banks do not even offer non recourse loans because it leaves them vulnerable to losses if their clients default on their loans and the collateral is not enough to cover the debt. When choosing a recourse vs. nonrecourse loan there are several factors for a business owner to consider, such as the risk of default, the revenue generated by the business to cover interest, the monthly payment and the term of the loan.
Phone
678-269-4020
info@peachtreecap.com
Address
Marietta, GA 30062