Mortgage Brokering
Aligned Financing Inc. works with Borrower to secure financing on commercial real estate and charges a fee based on a variety of factors, which include:
- Complexity of the requirement
- Type of property
- Size of the loan
Pricing structure
Assignments are charged as a percentage of the loan amounts and are subject to certain minimum. Fees are disclosed in writing once requested documents have been reviewed. For readers wishing to conduct internal budgeting scenarios, the majority of fees are approximately 1.00% of the loan amount. Note that Aligned Financing sets the fee according to the requirement's complexity and the size.
Case studies
Below are some of the more common types of properties grouped in categories. In addition to this, we have taken the time to provide you with a brief overview of what lenders look for and what should be addressed in a loan proposal.
The Borrower must remember the following:
With the above in mind, we hope you will find the following helpful.
The Borrower must remember the following:
- Every deal is unique and the actual presentation will vary from deal to deal.
- Prevailing market conditions must be addressed because they can impact the outcome of the loan.
- Lender appetites vary considerably, even among similar lenders (e.g., Bank X vs. Bank Y).
- Not all loan proposals are created equally.
- Just because you can approach a lender directly, doesn't mean you should.
With the above in mind, we hope you will find the following helpful.
Multi Unit Residential
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Multi Unit Residential
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Seniors Housing
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Student Housing
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Multi unit residential real estate focuses on properties that serve as dwellings. As you can imagine, these types of properties can come in a variety of setups and include traditional apartment buildings, seniors housing and student housing. While each of these properties have unique characteristics, their main purpose is a primary residence for a certain number of people.
Factors to consider with these properties include:
Factors to consider with these properties include:
- Current occupancy levels
- Historical occupancy levels
- Unit types
- Amenities
- Unique regulations (Ministry of housing, RHRA)
- Location... after all, this is real estate!
Investment Properties
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Mixed use
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Office
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Retail
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Investment properties are acquired to allow an entity can deploy their capital with the goal of earning a return.
While any property can be thought of as an investment, the term "Investment Property" typically refers to office buildings, retail buildings, mixed use buildings and apartment buildings (discussed above) because the primary cash-flow stems from the rented or leased space as opposed the operation of a business.
Some of the factors to consider include:
While any property can be thought of as an investment, the term "Investment Property" typically refers to office buildings, retail buildings, mixed use buildings and apartment buildings (discussed above) because the primary cash-flow stems from the rented or leased space as opposed the operation of a business.
Some of the factors to consider include:
- Current occupancy
- Historical occupancy
- Location and the surrounding activity
- Types of leases
- Lease expiries
- Types of tenants and their potential risks
Real Estate for Business
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Industrial / Manufacturing / Warehousing
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Self Storage
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Gas Station
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Hotel
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Banquet Facility
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Medical building
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This category involves real estate that is acquired by the Borrower for the operation of a business. The primary source of revenue, therefore, is from the ongoing success of the business.
As can be seen in the images, there is a wide variety of business' that can acquire real estate for the purpose of establishing a business. Each type of business has its own unique characteristics and key drivers. Because of this, loan proposals in this category have an added layer of complexity because a thorough analysis must be completed on the actual business and its industry. Put another way, loan requirements for the purpose of running a business straddle the world of real estate finance and corporate finance.
Some of the points that lenders will need to review include:
Borrowers need to be prepared to answer a variety of questions as lenders look to understand the loan request as well as the business' ability to repay the loan. With this in mind, our role is to anticipate the questions and present with a fulsome package that will help us negotiate a competitive deal that meets the Borrower's requirements.
As can be seen in the images, there is a wide variety of business' that can acquire real estate for the purpose of establishing a business. Each type of business has its own unique characteristics and key drivers. Because of this, loan proposals in this category have an added layer of complexity because a thorough analysis must be completed on the actual business and its industry. Put another way, loan requirements for the purpose of running a business straddle the world of real estate finance and corporate finance.
Some of the points that lenders will need to review include:
- The property's value
- Financial performance of the business for the past three years
- Financial projections
- Explanations for material changes
- Industry trends
Borrowers need to be prepared to answer a variety of questions as lenders look to understand the loan request as well as the business' ability to repay the loan. With this in mind, our role is to anticipate the questions and present with a fulsome package that will help us negotiate a competitive deal that meets the Borrower's requirements.
Construction / Renovations
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High rise construction
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Infill construction
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Single family home construction
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Construction and renovation projects introduce a variety of risks that a lender must understand and accept. For example:
The loan proposal must address the above construction related risks as well as analyze the end result and provide projections on the potential demand of such a property. To do this, the loan proposal must reference various consultant reports that will need to be ordered.
The Borrower should remember that selecting a reputable consultant is key and like mortgage brokers, they are not all the same.
To begin working on a construction project, we require the following basic documents:
- Will the project be completed on time?
- Will the project be completed within the budget?
- Is the Borrower experienced?
The loan proposal must address the above construction related risks as well as analyze the end result and provide projections on the potential demand of such a property. To do this, the loan proposal must reference various consultant reports that will need to be ordered.
The Borrower should remember that selecting a reputable consultant is key and like mortgage brokers, they are not all the same.
To begin working on a construction project, we require the following basic documents:
- Current appraisal on an AS-IS basis
- Current status of the property (e.g., zoning).
- Detailed construction budget
- Loan requirement
- Appraisal on a "When Completed" basis
Land
It all begins with land!
Land is interesting because it has tremendous potential, Lenders, however, view land as a risky asset. As a result, loan structures will depend on several factors including the following:
Lenders need a clear understanding of the project, the team behind the sponsor and how they will be repaid. Expectation is repayment will occur once the property is completed by one of the following methods:
Our loan proposals include the relevant details to ensure lenders understand the project and its potential.
Land is interesting because it has tremendous potential, Lenders, however, view land as a risky asset. As a result, loan structures will depend on several factors including the following:
- Borrower strength and experience
- Location: primary market vs. secondary market
- Properly zoned vs. requiring zoning changes
- Serviced vs. raw
- Timeline
Lenders need a clear understanding of the project, the team behind the sponsor and how they will be repaid. Expectation is repayment will occur once the property is completed by one of the following methods:
- Selling of units in the case of a condo
- Refinance in the case of rental
- Sale to an end user or investor
Our loan proposals include the relevant details to ensure lenders understand the project and its potential.