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velecico
3991 Posts |
 Posted - 07/10/2008 : 7:09:08 PM
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Sent a mix use deal to Silverhill today , I am a net , not approved with many commercial lenders , we have Wells , Interbay , LNB , and Patriot National Bank , I wanted to check out a few of the BO commercial posters that are strictly wholesale lenders
This is a cash out on a mix use building to pay off IRS TAX LIEN ( personal )
FICO is 705 , loan amount 500K , full doc . LTV 60 or BELOW
Silverhill was in the 8 % for a TIER 1 deal , with a 1.5 bump for a 7 year lock out you got 3 on the back , final rate 9.5
They had an option of NOT HAVING THE YSP ON THE HUD < I never herad of that , but certainly opted for it since I charged 2 discount , I figured no one was going to offer YSP , I was surprised .
Any wholesale lenders that can do better ? |
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VVance
2489 Posts |
Posted - 07/10/2008 : 7:19:41 PM
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| Always liked Silverhill. The YSP not on the HUD is the same as with other commercial sources I know. |
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velecico
3991 Posts |
Posted - 07/10/2008 : 7:23:45 PM
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| never knew that ,only done 2 commercial deals in 14 years , both were referrals to an S and L close to my branch , this is the first that I am putting together and brokering |
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waynepbright
3678 Posts |
Posted - 07/10/2008 : 7:31:51 PM
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I know Silver Hill does have a great reputation! |
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moneyluck
3775 Posts |
Posted - 07/10/2008 : 7:40:36 PM
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i am not a commercial guru by any means. But, in my experience, a strong commercial deal (ie one that is not a stated purchase of a multifamily with minimal debt service and limited borrower resources)is generally 1-2% lower at a local bank.
I know that silverhill and interbay are GREAT at making the process easy for the LO, as that is kind of their gig: getting resi LOs to try their hand at commercial, but I've never found their offerings very competitive in my market (Eastern Massachusetts).
Just my 2 cents, as I said, I am definitely not a commercial gal, do maybe 1-2 a year and refer out a few others.
For instance: I priced a 70% cash out on a multi today (great debt service, storng borrower, all the fixins) at 6.5% paying a 1% referral fee. 30/15 balloon, only a 3-2-1 prepay. Local Credit Union - borrower would have to open an account there (free).
Could charge broker if I wanted to, but on this small loan, I am just passing it off because the guy is great and really knows his stuff, and I clearly don't, hahaha!
Not at all the same scenario, so apples to oranges, but you get the idea. . . |
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lorie
487 Posts |
Posted - 07/10/2008 : 8:04:29 PM
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Silver Hill's rates are quite high in general. Also, they have lockouts. However, in light of the tax lien, this might be your only option. I suggest you try shopping this around a bit more. Terms don't seem very good at all.
Lorie
Coast Investors
305-446-9125
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morenito
6 Posts |
Posted - 07/10/2008 : 8:20:17 PM
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Hey Guys,
I have heard of Silverhill and Interbay through e-mails, but I have NEVER done a commercial transaction. Any suggestions on how to go about getting started?
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KHufford
5993 Posts |
Posted - 07/10/2008 : 8:30:19 PM
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Alright,
Silverhill has a good niche, the help rookie brokers with commercial in a decent way. However, its tantamount to sending an FHA client to Argent.
You have good resources here at BO, I would have asked for alternative prior to sending there. Silverhill and Interbay is ok for deals that are not bankable, which there are alot of now actually.
For a small deal like this, you can probably take it to a local small bank and get a better rate, and lower fees, in turn, you can make more with the right fee agreement.
With that said, I dont know your level of experience but it may be out of you "comfort zone" to go approaching banks on your own just yet. You may want to broker this with a good firm in your area instead...just a thought. What state is it in?
Now, all that being said, this is a very small loan amount, so if you can just close it with Silverhill and your client is happy, you make money, who cares, just close it.
Just options.
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EMScommercial
5138 Posts |
Posted - 07/16/2008 : 2:00:53 PM
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i will wholeheartedly disagree with the statement that silverhill has a great reputation.... they are sister company of interbay and owned by bayview financial.....
our business is nearly in whole commercial brokering.... and we have both companies marked in our database as 'do not use'.... they are terrible with follow through and circumvent you at ever turn... or that was our experience with them.....
i hope you have a better time in using them.....
have a great night.... |
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broker
115 Posts |
Posted - 07/16/2008 : 2:40:36 PM
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quote:
Originally posted by velecico
They had an option of NOT HAVING THE YSP ON THE HUD < I never herad of that , but certainly opted for it since I charged 2 discount , I figured no one was going to offer YSP , I was surprised .
Because it is a commercial deal all the normal federal and state consumer disclosure requirements go out the window. No need to put YSP on HUD. |
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velecico
3991 Posts |
Posted - 07/16/2008 : 7:44:36 PM
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Silverhill shot my deal down today because of the tax lien , said if it was against his business it would have a shot , but since its for personal taxes , they will not do it , OK if anyone can do this deal , here is the scenario :
60% LTV , CASH OUT , MIX USE , 707 MIDDLE , 500K LOAN AMOUNT , HE OPERATES HIS BZ OUT OF THE SUBJECT , RENT ROLLS OVER $6,000 PER MONTH
LOOKING FOR RATE IN THE MID EIGHTS OR NINE AT PAR
Tax lien is for 93, 94, 95 taxes , it was just filed this year , rest of credit is spotless , lien bought score down about 70 pts , had 800s before , his high score is 740 |
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KHufford
5993 Posts |
Posted - 07/16/2008 : 7:53:10 PM
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quote:
Originally posted by velecico
Silverhill shot my deal down today because of the tax lien , said if it was against his business it would have a shot , but since its for personal taxes , they will not do it , OK if anyone can do this deal , here is the scenario :
60% LTV , CASH OUT , MIX USE , 707 MIDDLE , 500K LOAN AMOUNT , HE OPERATES HIS BZ OUT OF THE SUBJECT , RENT ROLLS OVER $6,000 PER MONTH
LOOKING FOR RATE IN THE MID EIGHTS OR NINE AT PAR
Tax lien is for 93, 94, 95 taxes , it was just filed this year , rest of credit is spotless , lien bought score down about 70 pts , had 800s before , his high score is 740
Bummer, where is the property? What is the benefit? cashout?
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velecico
3991 Posts |
Posted - 07/16/2008 : 8:18:23 PM
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The property is in Atlantic City , all the money from the cash out is going to pay off the IRS , as I see it the only benefit is that the interest and penalties will stop accumulating , personally on a lien thats over 10 years old I would try to settle it for less but I guess they got him by the balls , funny thing , his business , TAX PREPARATION - RAPID REFUNDS !!! |
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lorie
487 Posts |
Posted - 07/16/2008 : 8:23:29 PM
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| Check your e-mail. |
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KHufford
5993 Posts |
Posted - 07/16/2008 : 8:51:31 PM
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quote:
Originally posted by velecico
The property is in Atlantic City , all the money from the cash out is going to pay off the IRS , as I see it the only benefit is that the interest and penalties will stop accumulating , personally on a lien thats over 10 years old I would try to settle it for less but I guess they got him by the balls , funny thing , his business , TAX PREPARATION - RAPID REFUNDS !!!
Ouch lenders these days want to see the cashout going back into the business or the property, not taxes, not toys...
This is going to be hard money,
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velecico
3991 Posts |
Posted - 07/17/2008 : 08:54:59 AM
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| thats what I thought , got an offer from a group in PA , 8.87 at 2.5 pts cost , I am charging him 2 on the HUD , its like pulling teeth to get another pt just to make .5 , still shopping it around , had another offer just come in at 9.99 at par , just sent them all info , have my fingers crossed |
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Bruce Holler
93 Posts |
Posted - 07/17/2008 : 09:11:41 AM
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| We can beat that by 1-2%, at par, No Lock, and a pp that makes sense, WE OFFER FULL DOC, SIVA, chioce of fixed 3, 5, 7, 10, 15, 30yrs, fully fixed, with amort from 15 to 30 yrs. |
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EMScommercial
5138 Posts |
Posted - 07/17/2008 : 09:12:59 AM
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| nick... drop me a line and we'll see if we can find someone to help you out.... |
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ccbank
1318 Posts |
Posted - 07/17/2008 : 11:48:57 AM
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quote:
Originally posted by KHufford
Alright,
Silverhill has a good niche, the help rookie brokers with commercial in a decent way. However, its tantamount to sending an FHA client to Argent.
You have good resources here at BO, I would have asked for alternative prior to sending there. Silverhill and Interbay is ok for deals that are not bankable, which there are alot of now actually.
Silverhill help rookies, that's great. The will also rape the client as well.
For a small deal like this, you can probably take it to a local small bank and get a better rate, and lower fees, in turn, you can make more with the right fee agreement.
With that said, I dont know your level of experience but it may be out of you "comfort zone" to go approaching banks on your own just yet. You may want to broker this with a good firm in your area instead...just a thought. What state is it in?
Now, all that being said, this is a very small loan amount, so if you can just close it with Silverhill and your client is happy, you make money, who cares, just close it.
Just options.
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ccbank
1318 Posts |
Posted - 07/17/2008 : 11:49:40 AM
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quote:
Originally posted by KHufford
Alright,
Silverhill has a good niche, the help rookie brokers with commercial in a decent way. However, its tantamount to sending an FHA client to Argent.
You have good resources here at BO, I would have asked for alternative prior to sending there. Silverhill and Interbay is ok for deals that are not bankable, which there are alot of now actually.
For a small deal like this, you can probably take it to a local small bank and get a better rate, and lower fees, in turn, you can make more with the right fee agreement.
With that said, I dont know your level of experience but it may be out of you "comfort zone" to go approaching banks on your own just yet. You may want to broker this with a good firm in your area instead...just a thought. What state is it in?
Now, all that being said, this is a very small loan amount, so if you can just close it with Silverhill and your client is happy, you make money, who cares, just close it.
Just options.
Silverhill help rookies, that's great. They will also rape the client as well.
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