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September 16, 2024Private Equity & CRE, Commercial Real Estate Loan Programs
Please find below the detailed loan program criteria for Pro Business Group Inc.’s capital financing options. These programs cover a range of investment needs, from private equity loans, short-term bridge loans, to long-term rental financing. a last resort, I’m able to get you access to your mortgage equity with a minimum FICO score of 500,
Business Advisory Tools
Business Private Equity Unsecured Loan Programs
5-7 Year Term Loan Program:
Funding Range: $50,000 to $500,000 (deposited into your personal account)
Terms: 5-7 years with a fixed APR and monthly payments
Proof of $50,000/year personal income for the last two years on personal tax returns
Min Fico: 680
Business Credit Card Program:
Funding Range: $50,000 to $150,000
Interest: 0% for 6-12 months
Reporting: Reports only to the business side
Stabilized Bridge Programs
Single-Family (1-4 Units):
Term: 12 Months (Extended terms available)
Min. Loan Amount: $75k
LTV (Purchase): Up to 80% of As-Is value or 80% Loan-to-Cost
Min. FICO: 650
Multi-Family (5+ Units):
Term: 12 Months (Extended terms available)
Min. Loan Amount: $250k
LTV (Purchase): Up to 75% of As-Is value
Min. FICO: 680
DSCR Debt Service Coverage Ratio
Minimum DSCR: 1.05
Loan Amount: $55,000 – $2,000,000
LTV (Loan-to-Value): * Purchase: Up to 80% (Lesser of As-Is Value or Loan-to-Cost)
Refinance: Up to 80% of As-Is Value
Cash-Out: Up to 75% of As-Is Value
Term & Amortization: 30-Year Fixed; Hybrid ARMs (5/1, 7/1, 10/1); Interest-Only options available
Minimum FICO: 660
Property Value: Must be $100,000 or greater
Fix and Flip Programs
Single-Family (1-4 Units):
Term: 12 Months
LTC: Up to 95% of Purchase + 100% of Renovation (depending on experience)
Max ARV: Up to 75% of After-Repair Value
Rehab Categories: Light (2.5%–50% of value), Moderate (50%–100%), and Heavy (>100% or significant expansion)
Multi-Family (5+ Units):
Min. Loan Amount: $250k
LTC: Up to 80% of Purchase + 100% of Renovation
Max ARV: Up to 70% of After-Repair Value
Long-Term Rental Programs (30-Year)
Single-Family (1-4 Units):
Amortization: 30-Year Fixed, Hybrid ARMs (5/1, 7/1, 10/1), and Interest-Only options
Min. Loan Amount: $75k
LTV: Up to 80% for FICO scores 700+
Multi-Family (5+ Units):
Max Units: 9 units
Min. Loan Amount: $150k
LTV: Up to 70% for FICO scores 700+
New Construction (Single-Family)
Term: Up to 24 Months
Loan Amount: $100k to $2M
LTC: Up to 90% Total Loan-to-Cost (depending on experience)
Min. FICO: 650 [...]
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September 16, 2024CRE Loans, Experience-Based vs. Credit-Based Leverage
The Pro Business Group Capital matrices determine your borrowing power (leverage) using two primary models, depending on whether the loan is short-term (bridge/reno) or long-term (rental).
1. Leverage Based on Experience
Applied to: Stabilized Bridge, Fix & Flip, and New Construction programs.
In these programs, your “track record” of completed projects in the last 3 years dictates your Loan-to-Value (LTV) and Loan-to-Cost (LTC).
Experience Level (Last 3 Years)
Maximum LTC (Purchase + Renovation)
Maximum ARV (After-Repair Value)
0 Projects (Entry Level)
85% Purchase + 100% Reno
70% of ARV
1–4 Projects (Mid-Tier)
90% Purchase + 100% Reno
72.5% – 75% of ARV
5+ Projects (Professional)
92.5% – 95% Purchase + 100% Reno
75% of ARV
Key Takeaways:
Renovation Funding: Regardless of experience, Pro Business Group Inc. typically funds 100% of renovation costs.
Risk Mitigation: Investors with no experience are required to “put more skin in the game” (higher down payment), while seasoned pros get the highest leverage.
New Construction Note: For ground-up builds, the projects must have been completed in the same state as the subject property to count toward experience.
2. Leverage Based on Credit Score (FICO)
Applied to: Long-Term Rental Programs (30-Year).
For long-term hold properties, Pro Business Group Inc. shifts the focus from “what you’ve built” to “how you manage debt.” Leverage is tiered based on the guarantor’s FICO score.
Single-Family (1-4 Units) Long-Term Rental:
| FICO Score | Purchase (LTV/LTC) | Refinance (LTV) | Cash-Out (LTV) |
| 740+ | Up to 80% | Up to 80% | Up to 75% |
| 700–739 | Up to 80% | Up to 80% | Up to 75% |
| 680–699 | Up to 75% | Up to 75% | Up to 70% |
Multi-Family (5-9 Units) Long-Term Rental:
| FICO Score | Purchase (LTV/LTC) | Refinance (LTV) | Cash-Out (LTV) |
| 740+ | Up to 70% | Up to 70% | Up to 65% |
| 720–739 | Up to 70% | Up to 70% | Up to 65% |
| 700–719 | Up to 70% | Up to 70% | Up to 65% |
Key Takeaways:
Minimum Thresholds: You generally need at least a 680 for single-family rentals and a 700 for multi-family rentals.
Stabilized Pricing: Unlike the “Experience” model, the “Credit” model offers more rigid LTVs but provides long-term stability with 30-year terms and fixed rates.
Cash-Out Penalty: Opting for a “Cash-Out” refinance typically reduces your maximum leverage by 5% compared to a standard purchase or rate-and-term refinance.
Summary Comparison
Feature
Experience-Based (Bridge/Flip)
Credit-Based (Rental)
Primary Driver
Completed “Flips” or Projects
FICO Score
Goal
High leverage for speed/renovation
Sustainable leverage for cash flow
Max LTV/LTC
High (Up to 90%–95% LTC)
Moderate (Up to 70%–80% LTV)
Loan Term
Short (12–24 months)
Long (30 years) [...]
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September 16, 2024Specific Requirements for Different Investment Tiers
Specific requirements for any one of these tiers, such as what counts as a “completed project”?
To count toward your experience level and unlock higher leverage, Pro Business Group Inc. Capital division follows a specific set of rules for what qualifies as a “completed project.”
Here is the breakdown of those requirements and how they impact your borrowing power:
What Counts as a “Completed Project”?
For the Fix & Flip and Stabilized Bridge programs, a project is generally recognized if it meets these criteria:
Recency: The project must have been completed within the last 3 years.
Ownership: The property must have been owned by the Guarantor(s) of the loan.
Exit Strategy: For Fix & Flips, the property must have been bought, renovated, and successfully sold (or refinanced into a long-term loan).
Property Type Consistency:
1–4 Units: To get the best terms on a single-family flip, your experience should ideally be in 1–4 unit properties.
5+ Units: For Multi-Family bridge or rehab loans, our Pro Team looks for experience specifically with larger multi-family assets.
New Construction: The “Same State” Rule
The requirements for New Construction (Ground-Up) are more localized and stringent:
Geography: Projects must have been completed within the same state as the subject property you are currently seeking a loan for.
Complexity: You must show a track record of building from the “ground up”—standard renovations typically do not count toward New Construction experience levels.
Experience-Based Leverage Tiers
Depending on how many of the above projects you can document, your leverage shifts as follows:
Tier 1: The “Entry Level” Investor (0 Projects)
Focus: Safety and proof of concept.
Max Purchase LTC: 85% (You bring 15% down + closing costs).
Renovation: Pro Business Group Inc., still funds 100% of the rehab.
ARV Cap: Limited to 70%.
Tier 2: The “Mid-Tier” Investor (1–4 Projects)
Focus: Growth and reduced capital requirement.
Max Purchase LTC: 90% (You bring 10% down).
ARV Cap: Increases to 72.5% – 75%, allowing for a larger total loan amount if the property value supports it.
Tier 3: The “Professional” Investor (5+ Projects)
Focus: Maximum capital efficiency.
Max Purchase LTC: 92.5% – 95% (You bring as little as 5% down).
ARV Cap: 75%. This is the “Gold Standard” for high-volume flippers.
Important Verification Notes
HUD-1/Settlement Statements: You will need to provide closing statements from both the purchase and the sale of your previous projects to prove experience.
Entity vs. Individual: If you did the deals under a different LLC, you can usually still count them as long as you were a majority owner/guarantor of that entity.
Heavy vs. Light Rehab: Your experience level also dictates how “heavy” a rehab Pro Business Group Inc., will allow you to take on. If you have 0 experience, they may be hesitant to fund a “Heavy Rehab” (where the budget exceeds 100% of the initial property value).
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