Minimum loan size is $500,000; maximum loan size is $10,000,000.
Investors in commercial real estate, small business owners who own their properties, larger investors who want fast closings, higher leverage and/or the terms that ReadyCap has to offer.
ReadyCap lends on apartments, office, retail, industrial, self storage, and mixed use.
ReadyCap does not lend on land or special use properties, like gas stations, restaurants, hotels, motels, B&Bs, car washes, dry cleaners, churches, golf courses or other similar properties. ReadyCap also does not do any ground-up construction or non-real estate related lending.
ReadyCap lends up to 75% on our Tier 1 investment, apartment and bridge products; up to 90% on Tier 1 owner user conventional, SBA 504 and SBA 7A loans.
ReadyCap considers a foreign national as a non-U.S. resident and a non-U.S. citizen. A borrower is also considered a foreign national if they retain both their citizenship and residency in another country. If a borrower is still a citizen of another country, but is a permanent U.S. resident, that is not considered a "foreign national" for purposes of our loan programs.
It depends on the foreign national's role in the loan process. If the foreign national is the main sponsor, with controlling interest in the property being financed and is the main driver of the transaction, we would like to see U.S. held commercial real estate holdings, potentially a residence, and U.S. tax returns. If the foreign national borrower is solely a financial partner to the transaction, we prefer to see some assets in the U.S., although they can be non-real estate assets as long as the main sponsor to the transaction has commercial real estate experience.
This will vary deal by deal, just as with a U.S. citizen. For a bridge loan we like to see a minimum of 12 months principal and interest payments (PITI), for a conventional loan a minimum of 6 months PITI is standard.
Yes. Loans to foreign national sponsors are non-recourse.
- Copy of the individual's Passport and I-94 form
- Copy of the individual's current Visa (if required)
- Copies of bank statements for any U.S. based accounts
- Copies of any U.S. Federal tax returns the individual has filed as a non-resident (past 2 years)
- Copy of the individual's credit report from their country of origin (individual to provide to us), with amounts shown in U.S. dollars if possible
- 2-3 letters of reference from financial institutions
- 2-3 letters of reference from business relationships
Yes, we cap our loans at 4-6% over your start rate.
Yes. Our loans have a flat prepayment penalty option, a step-down prepayment penalty option, and yield maintenance. You should review each of these options with your loan officer.
Yield maintenance, or YM, is a method of prepayment that offers the investor who invested money for you to do your loan the same yield whether you pay off the loan (refinance or sale) or not. With YM, you as the borrower are paying to maintain the yield as if you continued to make payments on your loan through the rest of the term, less the amount the investor will make in the market for investing in a similar treasury.
Yes, we offer cash out, provided the loan is within our leverage and debt coverage guidelines. We don't even try to dictate how to spend the money.
Yes, although lender consent is required with a 1% fee and non-recourse loans only.
Yes, we can offer hold-backs if the project warrants.
Our average FICO score is 680 per loan. We have no FICO minimum for apartment loans in Tier 1 markets, and no minimum FICO for other programs provided there is minimum liquidity, no recent lates and a good story.
No, all of our loans require tax returns.
Yes, on owner user.
Not required on apartments and investment properties, unless there is an exception.