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We provide short term funding solutions to clients, allowing them to remedy adverse underwriting elements and reposition the asset for traditional Commercial Real Estate Mortgages within a six to twelve month timeframe.
Advantages
In a challenging credit environment, Arctus can provide value to clients and the brokers who serve them, by using different underwriting standards and investment guidelines than conventional commercial lenders. Our products allow investors to take advantage of rapidly emerging and heavily discounted opportunities and then give the purchaser time to prepare the asset for conventional financing.
Asset Based Lender: Arctus bases the majority of its underwriting on the current value of the underlying asset as derived by a MAI appraisal. We will not penalize clients for buying heavily discounted assets with arbitrary Loan-to-Cost ratio requirements. In fact Arctus can fund 100% of the acquisition cost as long as the loan amount fits within our Loan-to-Value guidelines.
Rehabilitation, Stabilization and Asset 'Seasoning':
Arctus can provide construction financing in order to rehabilitate buildings and loan on vacant properties, allowing the stabilization of rent rolls to occur. Our loans 'Season' the asset, building a payment performance and income history so that after six to twelve months the property can be taken down with a conventional re-finance.
Speed and Flexibility of Funding:Arctus can fund in as little as two (2) weeks from the submission of a complete file, on the condition that an acceptable, recent MAI appraisal is available. Arctus can also reserve interest under certain circumstances. This allows clients to move fast in response to emerging market opportunities and provide them with the flexibility to reposition the asset to qualify with the stricter underwriting standards for permanent financing |