Diamond Financial is a commercial mortgage and SBA loan brokerage firm specializing in building long-term relationships with our clients and lenders. Diamond Financial has the flexibility to provide innovative financing solutions suited to a wide range of commercial and owner-occupied properties with financing programs up to $10 million. With capital markets constantly changing in sophistication and complexity, our customers rely on us to use our expertise to structure the best transaction available for them.

David Brindley
Vice President of Commercial Lending
Office: 919-782-3101 x 15
David.Brindley@DiamondFS.com

 

Conventional Commercial Property Mortgages


Diamond Financial’s commercial division provides commercial property mortgages for hotel/motels, office buildings, retail centers, industrial facilities, warehouses, and special-use commercial properties. Diamond Financial’s nationwide network of lenders and its syndication capability for commercial mortgages allow us to fund transactions that other lenders pass over.


Typical terms for our commercial property mortgage program include:

  • LTV’s up to 75-80%
  • Fixed rates up to 30 years
  • Flexible amortization terms
  • Potential for non-recourse loans
  • Low/no pre-pay penalties
  • Financing for non-conventional properties
  • Potential for assumable financing

 

NNN Loans


Diamond Financial’s commercial division provides commercial property NNN loans for franchise restaurants, NNN retail stores, drug stores, as well as NNN “big box” stores.
Typical terms for our NNN loan finance program include:

  • LTV’s up to 75%
  • Loan terms up to 25 years
  • Flexible loan amortization terms
  • Non-recourse loans
  • Potential for assumable financing

 

Multi-Family Unit Loans


Diamond Financial’s commercial division provides multi-family loans for properties throughout the US, and specializes in both purchase and refinances transactions.
Typical terms for our multi-family loan finance program include:

  • LTV’s up to 85%
  • Loan terms up to 30 years
  • Flexible loan amortization rates
  • Potential for non-recourse
  • Low/no pre-pay penalties
  • Financing for mixed-use properties
  • Potential for assumable financing

.

SBA Loans


Diamond Financial’s commercial division provides mortgage financing for real estate under the US Government’s Small Business Administration SBA Loan Program. The SBA 504 and 7(a) loan programs can be used for properties which have greater than 50 percent owner occupancy, or are owner-managed such as motel properties. SBA loans can be highly advantageous, and Diamond Financial has the resources and experience to streamline this process.

 

SBA 504 Loans vs. Typical Bank Loans

Small business owners put less money down and maximize their cash flow with an SBA loan, making owning real estate an option for many business owners that might otherwise not have the opportunity. Business owners can conserve cash and increase cash flow to concentrate on growing their business instead of putting it into their real estate (a non-income-producing asset), while at the same time get the benefits of owning instead of leasing. SBA 504 loans provide 90% loan-to-cost financing for commercial real estate with low monthly payments at below market, long-term fixed interest rates and in the process, create new jobs for the community.
The following is a detailed comparison of the financing variables typically available to most small to mid-sized business owners wanting to acquire/construct owner-occupied commercial real estate.
 


 

Typical
Bank Loan

Diamond Financial Services
(504 Loan Program)

Loan Amount

75% to 80% of the lesser of appraised value or purchase price.

90% loan-to-cost (90% financing of total project costs,
 inclusive of soft costs, closing costs, and renovations).

Equity

20 to 25% plus closing and soft costs.

10% of the total project costs.

Term

Frequently 5, 7, 10 or 15 years, then balloons.

1st Mortgage : 20 or 25 years.
2nd Mortgage : 20 years.
23 years blended with no balloons.

Amortization

15 or 20 years.

1st Mortgage: 20 or 25 years.
2nd Mortgage: 20 years.
23 years blended and fully amortizing.

Pricing

Competitive fixed or variable rates.
 
Usually not assumable.

1st Mortgage:
Competitive fixed or variable rates.
 
2nd Mortgage:
Least expensive financing available to most small business owners for commercial real estate. Usually 0.5 to 1.5% less than bank rates and fixed for 20 years.
The blended, effective rate of the 1st and 2nd mortgages is nearly always lower than typical bank financing and is fixed for a longer period of time.
 
Both loans are assumable.

Personal Guarantees

 
Required
 

Required, but for strong credits, can be limited to pro rata ownership.

Prepayment Penalty

Sometimes required, but frequently not.

Required yet Flexible and negotiable.  Can pre-pay up to 20% of principal balance for first ten years with no prepayment penalty.  No yield maintenance, defeasance penalties or lock-outs.

Debt Service Coverage (DSC)

Usually 1.2x or higher.

At least 1.0x.

Fees

Usually 0.5% to 1% of loan amount.

Usually 1.5% of 1st mortgage and 1% of 2nd mortgage. Blends to 1.27%, but is negotiable for strong credits.

Personal Credit Scores

Usually not less than 650.

Usually not less than 600.

Application Process

Extensive, time consuming and a long waiting period just to get approved.

Hassle-free and streamlined with fast decisions.

 
"This is a once-in-a-generation opportunity to lock in rates on a 20-year 504 loan at somewhere around 6.5 [percent]," says Jim Hammersley, Director of Loan Programs for the SBA, "With rates as low as they are, more people should be taking advantage of that."