About Shop Commercial Mortgage
Headquartered in Tampa, FL, Shop Commercial Mortgage is a private money lender offering loans throughout Florida. Their focus is mainly on commercial loans. Their lending guidelines are versatile, including terms between 1 year and 7 years, rates ranging between 9% and 12%, and loan amounts ranging from $50,000 to $10,000,000 with a maximum LTV of 55%. They lend funds to any borrower based on the property value and do not require a minimum credit rating. They will make loans on all of the following property types: multi-family units, apartment buildings, offices, retail units, hotels/motels, storage buildings, assisted living facilities, mixed use buildings, warehouse buildings, industrial buildings, medical buildings, and undeveloped land.
Loan Types Offered: Commercial Hard Money Loans
Property Types Covered: Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Warehouse, Industrial, Medical, Land
Areas Served: FL
Lending Guidelines for Shop Commercial Mortgage
Below are the general loan guidelines published on the Shop Commercial Mortgage website. Please confirm all terms and rates directly with the lender.
Commercial Hard Money LoansLoan Amounts: $50,000 - $10,000,000
Available Rates: 9% - 12%
Typical Terms: 12 months - 84 months
Points Charged: 2% - 3%
Max Loan-to-Value (LTV): 55%
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: N/A
Interest Only Loans: YES
Prepayment Penalties: N/A
Minimum FICO Score: NO
Time to Close: 2 - 3 Weeks
The following loans are for education purposes only. They do not represent actual loans executed by Shop Commercial Mortgage.
Loan Example 1
So she can buy a new commercial building for her business, Daisy turns to Shop Commercial Mortgage to fund her purchase with a commercial private money loan because she cannot obtain a conforming loan from a bank. The property costs $290,000. Daisy will have to put 15% down, or $43,500, since the lender will loan only 85% of the transaction (the loan-to-value or "LTV"). This means the principle amount on the deal will be $246,500. The deal also includes a 6 month term, a 13% interest rate, interest-only payments made each month with a balloon payment at the end of the note (with no pre-payment penalty), and a 5 percent origination fee. In accordance with the parameters of the loan, Daisy will have to pay an origination fee of $12,325 when the loan is executed. She will also start to make payments of $2,670 monthly throughout the duration of the loan and will re-pay the principle amount at the end of the 6 month loan term. Should she decide to pay off the loan earlier, she may do so without additional cost because there isn't a pre-payment penalty attached to the note.
Loan Example 2
Jonathan finds a house in Miami, FL to renovate and sell. Because he does not have enough cash to buy the property outright, he takes a hard money loan from Shop Commercial Mortgage with the following parameters:
a) A $180,000 purchase price, b) a 60% loan to value (LTV), c) a 12 month term, d) a 8% interest rate, and e) a 1% origination fee.
If Jonathan achieves his goal of a $225,000 sales price, the final numbers of the deal would be the following:
$225,000 sales price
- $108,000 loan principle (60% LTV)
- $72,000 down payment (40% on 60% LTV)
- $1,080 origination points (1% of the $108,000 principle)
- $8,640 interest payments (12 months x 8% interest)
= $35,280 total profit (does not include taxes or renovation costs)
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