CRE LOAN PROGRAMS
FIXED RATE LOANS
Fixed rate commercial mortgages have a fixed interest rate and payment for the full term of the loan. These loans are structured with fixed rates from 5, 10 and even 30 years and is the most commonly used financial tool for owning real estate. The loan product makes it easier to budget, especially over the long term, and it offers stability across an ever-fluctuating market.
CONSTRUCTION LOANS
A construction loan is used to fund the construction costs of a real estate project before obtaining long-term funding. As work progresses, the lender pays money out in stages (draws). These loans are typically short term, between 12-36 months maximum and have variable rates that move up and down with the WSJ Prime rate. Cali Capital is a leader in arranging construction funding for ground up development of multi-family, mixed-use, office, retail, self-storage and condominiums for sale.
BRIDGE LOANS
Bridge loans are short-term loans secured by the borrower’s current property to finance the purchase of a new property, short-term refinance, or renovation/construction. They allow users to meet obligations by providing immediate cash flow through a quicker closing than conventional loans.Our direct lending platform, Cali Direct Funding, leverages both our expertise and knowledge to help you bridge the capital gap in special situations where conventional financing is not readily available. Offering highly competitive terms and streamlined execution allowing you to close IN AS LITTLE AS TWO WEEKS!
FIX & FLIP LOANS
A fix and flip loan is short-term financing that real estate investors use to buy and renovate a property in order to resell it for a profit, a process known as flipping.
These loans are typically used to purchase residential real estate, finance renovations and improvements, as well as cover additional expenses associated with listing and selling the property. Cali Capital is an expert in arranging the most ideal terms for fix & flip financing.
CMBS LOANS
Commercial mortgage-backed security (CMBS) loans are a type of popular commercial real estate loan secured by a first-position mortgage for properties such as warehouses, offices, apartments, hotels, shopping centers, and retail buildings. They are offered by conduit lenders, as well as investment and commercial banks. CMBS loans typically come with five, seven, or ten year term lengths, however they are amortized over a 25-30 year duration. CMBS loans come with fixed interest rates, which are generally based on the swap rate plus a spread. CMBS loans are non-recourse.
AGENCY LOANS
Agency loans like Fannie Mae and Freddie Mac are government-supported loans that guarantee mortgages. The mortgages represented by these securities are guaranteed by the issuing agency that the principal amount of the loan will be repaid.
LAND LOANS
Land loans are used to purchase raw land and vacant lots. They differ from traditional property loans because lenders perceive the collateral to be less secure and the loans to be riskier. As such, these loans are typically lower leverage in nature 50-65% (potentially higher on a case-by-case basis).
MEZZANINE LOANS
Mezzanine loans assist in generating more capital for a business in addition to allowing it to increase its returns on equity and show a higher bottom-line profit. They typically do not require payment during the term of debt, only at the end of the term. This enables a company to improve its cash flow. It is the highest-risk form of debt, but it offers some of the highest returns – a typical rate is in the range of 12% to 20% per year.
PREFERRED EQUITY
Preferred equity is part of the real estate capital stack and is a type of financing a sponsor or developer will employ as part of the aggregate capital raise for a given real estate project.
