Commercial Real Estate Comparison Pricing Summary

Transcription

1 Wells Fargo Bank, N.A. Small Business Administration Lending Commercial Real Estate Comparison Pricing Summary Prepared For: Darrin Boyd - David Moore Property Address: 9755 Westoint Drive Indianapolis, IN As of Date: October 5, 2015 Business Development Officer: Fax Number: Cell Number Address: 300 N. Meridan Street, Suite 1600 Indianapolis, IN For discussion only

2 Loan Type: SBA 7(a) 90% LTV Owner Occupied Commercial Real Estate Financing $131 per square foot $ 1,195,000 SBA Guarantee Fee (estimate) 28,232 7(a) Packaging Fee (estimate) 0 Other Fees: appraisal, environmental, escrow, title (estimate) 7,500 Total $ 1,230,732 Cash Down Payment (10%) $ 123,073 Total Loan Amount $ 1,107,659 Loan Details SBA 7(a) Loan Amount $ 1,107,659 Loan Rate (estimate) 5.40% Fixed for 25 Years Loan Term (in years) 25 Monthly Payment $ 6,736 Monthly Occupancy Cost (P+I) $ 0.74 per square foot Annual Occupancy Cost (P+I) $ 8.85 per square foot

3 Loan Type: SBA % LTV Owner Occupied Commercial Real Estate Financing $131 per square foot $ 1,195,000 CDC Debenture Fee (2.750% total by CDC) (estimate) 13,145 CDC Origination Fee (estimate) 1,250 Bank Loan Fee (.500% approx) (estimate) 3,022 Other Fees: appraisal, environment, escrow, title, legal (estimate) 9,500 Total $ 1,221,917 Cash Down Payment (10%) $ 122,192 Total Loan Amount (includes 1st & 2nd mortgage) $ 1,099,725 WFSBA SBA 504 Combined Loan Details 1st Mortgage 2nd Mortgage Loans Loan Amount 603, ,070 $ 1,099,725 Loan Rate 5.40% 4.91% 5.18% WFSBA loan reprices Loan Term (in years) every 10 years Amortization Term (in years) Monthly Payment 4,118 3,249 $ 7,368 Monthly Occupancy Cost (P+I) $ 0.81 per square foot Annual Occupancy Cost (P+I) $ 9.68 per square foot

4 Loan Type: Conventional Loan Up to 75% financing on owner-occupied Commercial Real Estate $131 per square foot $ 1,195,000 Bank Loan Fee (.000%) (estimate) 0 Other Fees: appraisal, environmental, escrow, title (estimate) 7,500 Total $ 1,202,500 Cash Down Payment (25%) $ 306,250 Total Loan Amount $ 896,250 Loan Details Loan Amount $ 896,250 Loan Rate (estimate) 4.75% Fixed rate Loan Term (in years) 5 Amortization Term (in years) 20 Monthly Payment $ 5,792 Monthly Occupancy Cost (P+I) $ 0.63 per square foot Annual Occupancy Cost (P+I) $ 7.61 per square foot

5 SBA 7A vs. SBA 504 Comparison vs. Conventional Fixed SBA 7(a) loan scenario (90% Loan to Value) SBA 504 loan scenario (90% Loan to Value) Conventional fixed rate loan scenario (75% Loan to Value) Property Cost: $1,195,000 Property Cost: $1,195,000 Property Cost: $1,195,000 Loan amount: $1,107,659 Wells Fargo 1st Mortgage: $603,656 Loan amount: $896,250 CDC 2nd Mortgage: $496,070 Due In: 25 yrs Amortized (WF 1st Mtg): 20 yrs Amortized over: 20 yrs Amortized (CDC 2nd Mtg): 20 yrs Due In: 5 yrs SBA 7(a) interest rate:* 5.40% Interest Rate (WF 1st Mtg):** 5.40% 5 year fixed interest rate: 4.75% *25 year fixed rate Interest Rate (CDC 2nd Mtg): 4.91% Blended interest rate: 5.18% Monthly payment: $6,736 Monthly payment: $7,368 Monthly payment: $5,792 Property Down Payment: (10%) $119,500 Property Down Payment: (10%) $119,500 Property Down Payment: (25%) $298,750 SBA 7(a) Related Fees: Wells Fargo & SBA Related Fees: Wells Fargo Related Fees: Guaranty Fee $2,823 CDC Fees (2nd mtg) $1,440 Wells Fargo Loan Fee $0 Packaging Fee $0 Wells Fargo Fee (1st mtg) $302 Third Party Related Fees: $750 Third Party Related Fees: $950 Third Party Related Fees: $7,500 Total Cash Out of Pocket $123,073 Total Cash Out of Pocket $122,192 Total Cash Out of Pocket $306,250 ** Reprices every 10 years SBA 7(a) Loan Specifics: As little as 10% down payment 25 Year amortization/term No balloon payment Very limited prepayment penalty Most loans close in days Working Capital, Equipment, & Fees can be financed MUCH simpler process - 1 lender vs. 2 Temporary Collateral May be Required SBA 504 Loan Specifics: As little as 10% down payment Temporary Collateral May be Required Prepayment penalties apply Most loans close in days Fees can be financed if covered by Appraisal Two Loan Closings Rate not fixed till after closing No Covenants, No Monitoring Also available on 1st Loan: Also available: Also available: 3 yr rate lock at 3.75%, 25 year fixed at 5.95% 7 yr rate lock at 4.70% 30 year amort with 10 year maturity at 5.55% 10 yr rate lock at 5.00% 20 year amort with 5 year rate lock at 4.40% The above figures are for discussion purposes only and are subject to change. This is not an offer or commitment to lend. Conventional Loan Specifics: At least 25% Down Payment Balloon payment options available Prepayment Penalties Apply Most loans close in days One loan closing Covenants/Montioring Apply October 5, 2015