This varies by property type but VII offers Interest Only loans up to 60 months, as well as extensions to 120 months at 0.5% per annum on a case by case status. No prepayment, non-recourse options as well. Please see our loan guidelines and matrix for further details. 

Special-use is commonly associated with properties that are either designed for a particular type of tenant, or are modified for use by a particular type of tenant. They are not suitable for multi-use (use by a wide variety of tenants such as an office, retail or industrial building). The modifications are significant enough that future users of the property would have to incur significant costs for conversion to their use. Examples of special-use include automotive repair (if pits or other permanent modifications made to property), car wash, restaurant, night club, event center, funeral home, assisted living and self-storage.

A property would be considered as an investment if it is 100% leased to tenants that are unrelated to the owner, or the owner’s business occupies <50%.

In commercial real estate, owner occupied (also known as owner-user) is defined as a property that is at least 51% occupied by a business owned by the principals/guarantors. Please note that in order to qualify for SBA financing, the business must occupy at least 51% of an existing property or 60% of a new construction project.

Yes. The underwriting for owner occupied properties gives primary consideration to the cash flow of the owner’s business. Investment properties are underwritten based upon the lease income and expenses of the property, as well as, underwriting factors such as vacancy, management and reserves. Secondary consideration may be given to outside sources of income, but the business or property should still demonstrate sufficient strength and cash flow.

Commercial non-conforming real estate loan from $1,000,000.00 to $800,000,000.00 on a case by case scenario.

Upon approval for issuance of an LOI VII will request a quote from one of our Business Valuation and Inspection Companies. This quote is good for 60 days. After we receive the signed Commitment from the borrower. We will email and make introductions to the Business Valuation and Inspection Company. The Company will issue their own invoice and paperwork to you. Once their fee is paid they usually will set a date and timeframe for travel to the site within 2 to 3 weeks. The Third Party Company will communicate with the client thereafter for a smooth streamline process. 

Existing appraisals can usually be accepted. If the appraisal was completed within the last twelve (12) months, the report should be submitted to our processing department for review. We try to keep borrower costs to a minimum and we generally will accept a current appraisal of good quality.

VII does offer a refundablity with the Third Company Business Valuation and inspection fee. A Business Valuation and inspection contains additional aspects other than price valuation, hence there is more information obtained in this process that provides a greater working room than through the former. Therefore, any refundablity will be less the costs and fees associated with our “Commitment Process” as stated in the Commitment issued.

No. All 3rd Party Reports, including the valuation / inspection, must be engaged by VII in conjunction with our requirements. VII has a preference for Private firms and has found that even though a report that is prepared by smaller operators may cost less, the quality of the report may present problems that interfere with the ability to close the loan. Issues we have experienced with smaller operators and larger operations as well include excessive use of Extraordinary Assumptions, lack of supporting information provided for appraiser’s assumptions, excessive adjustments to comparables and lack of market information. There are also quality control measure in place with our 3PR that are not inherent with others. These are just a few of the issues we have run into.

Yes. A summary copy of the report will be included in VII Executive Committee Report (less any proprietary information deemed protected by the Third Party) after all due diligence and final reviews have been performed.

We may require a Phase 1 environmental report but the requirement varies by loan program and transaction type. In some cases, we are able to use a less expensive report, such as a Transaction Screen or not require one at all based on the type of loan, location and other factors at our discretion.

Personal guaranties are required but we may consider limited or non-recourse paid for by an option on a case-by-case basis for stronger quality loans and properties.

Any Corporation, Partnership, Limited Liability, LLC, LTD, S.A., PTE or other structure involved in the transaction will be required to provide its authorized signature via partner, officer, Controlling Shareholder or owner. Most of our loan programs require full recourse to the principals (defined as owning a minimum of 15-20%). In cases where there is a minority partner providing the majority of capital for the project, the minority partner may be required to provide their guaranty too. We may consider on a case-by-case basis a non-recourse or limited recourse request for stronger loan requests with lower loan-to-value ratios. The principal’s financial and credit information would still be required for review on a non-recourse or limited recourse request. We offer an option for Non-recourse on a case by case basis.

With most of our loan programs, we require fire, lighting and extended coverage insurance for the maximum insurable amount on the referenced real property. Additional requirements may apply on a case by case basis, depending upon the selected loan program. Full Replacement Cost Value for SBA loans is required. Evidence of insurance should be provided by the agent on ACORD 27 (or comparable form).

Timeframes vary depending on the loan program selected and the degree of cooperation from the Borrower in providing the required documents. Also keep in mind that the Business Valuation and Inspection report will typically take 2 to 3 weeks to complete unless an expedited option is paid for. A typical conventional loan may close in about 45 Business days if all requested documentation is provided within the required time frame. Construction and/or SBA 504 loan requests are a minimum of 45 business days.

• Accounts Payable - AP– money owed by a company to its creditors.
• Accounts Receivable - AR– money owed to a company by its debtors.
• Accounts Receivable Financing - Using amounts owed by customers as collateral in raising a secured short-term loan. In case of default, the lender has the right to collect receivables directly from the named debtors.
• Acquisition– the purchase of most or all of a company’s ownership stakes in order to assume control of the company.
• Acquisition Financing – The type of funding that is obtained by a business for the purpose of buying another business.
• Appraisal – impartial analysis and evaluation conducted in accordance with established criteria to determine the value of something.
• Appraisal Approach  - the method used to determine an asset’s value. The appraisal approach values an asset on several factors, such as cost, the income it generates or a comparison of the market value of the asset.
• Articles of Incorporation– a legal document filed with