Paul E Stansen APC
Financing
Commercial property financing
Paul Stansen provides experienced commercial mortgage brokerage services, helping property owners and investors secure competitive acquisition and refinancing solutions.
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Customized Financing: Tailored loan strategies based on each property’s characteristics, investment objectives, and borrower’s financial strength.
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Comprehensive Financial Analysis: Detailed evaluation of credit, global cash flow, profit and loss statements, balance sheets, and lender requirements.
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Attention to Detail: Identifying critical financial nuances that can determine loan approval, interest rates, and financing terms.
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Strategic Lender Negotiations: Working to secure favorable loan structures, competitive rates, and optimal financing terms.
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Start-to-Finish Representation: Managing the financing process from initial consultation and underwriting through lender approval, funding, and closing.
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Results-Driven Approach: Delivering personalized financing solutions designed to maximize investment opportunities and strengthen long-term financial performance.
The Difference: Commercial loan approvals often hinge on details others overlook. Paul’s experience, financial insight, and hands-on representation help clients navigate complex underwriting and achieve seriously successful financing outcomes: loans on turnaround hotels (below), closed / damaged hotels, difficult borrower issues such as multiple credit derogatories or low FICOs, etc. My aim is to work through all issues impeding approval or affecting rates and terms. Paul works closely with lender reps AND UNDERWRITING to secure acceptable financing.
Loan & DSCR calculator
Monthly payments, debt coverage and commercial financing ratios.
Your financial analysis
- Annual debt service
- Debt service coverage ratio
- Annual cash flow after debt service
- Loan constant
- Debt yield
- Cash-on-cash before purchase costs
- Cap rate
- Loan-to-value
How these numbers are calculated
Payments use a fixed annual rate divided by 12, with payments at the end of each month. Annual debt service is 12 monthly payments. Debt coverage is annual NOI divided by annual debt service. Debt yield is NOI divided by the loan amount. Loan constant is annual debt service divided by the loan amount. Cap rate is NOI divided by property value. Cash-on-cash is annual cash flow after debt service divided by property value less the loan amount, before purchase costs and reserves. “N/A” means the ratio has no positive denominator.
Turn Around Property – Financing?: Turnaround financing provides acquisition, renovation, or refinancing capital for underperforming commercial properties with the potential to increase income, profitability, and property value.
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Identify Investment Potential: Evaluate current performance, market conditions, and opportunities to increase Net Operating Income (NOI).
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Develop a Turnaround Strategy: Establish a credible business plan to improve occupancy, rental income, operational efficiency, and profitability.
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Demonstrate Financial Feasibility: Prepare realistic projections showing improved cash flow, stabilized property value, and future Debt Service Coverage Ratio (DSCR).
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Structure Appropriate Financing: Identify bridge loans, SBA financing where eligible, private capital, or conventional lending solutions.
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Leverage Borrower Strength: Highlight liquidity, net worth, creditworthiness, management experience, and available collateral to offset current property deficiencies.
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Finance Capital Improvements: Incorporate renovation costs, property upgrades, and operating reserves into the financing structure where permitted.
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Negotiate Flexible Loan Terms: Seek interest-only periods, appropriate loan maturities, and refinancing options that accommodate the stabilization period.
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Establish an Exit Strategy: Demonstrate how improved property performance will support permanent refinancing or a profitable sale.
The Key to Success: Financing an underperforming property requires convincing lenders to evaluate not merely its historical performance, but its credible future earning potential, supported by a sound business plan, experienced sponsorship, and a realistic path to stabilization.
What is DSCR?
- – DSCR Calculation: Annual Net Operating Income (NOI) divided by Annual Debt Service (principal and interest payments).
– DSCR Below 1.00x: Property income is insufficient to cover annual debt payments.
– DSCR of 1.00x: Property income exactly covers annual debt payments.
– DSCR Above 1.00x: Property income exceeds annual debt obligations, providing a financial cushion. - – Typical Lender Requirement: Many commercial lenders require a minimum DSCR of 1.25x, although requirements vary by lender, loan program, and property type.
– Loan Qualification: Higher DSCR generally strengthens loan eligibility and may support more favorable financing terms. - – Underwriting Considerations: Lenders also evaluate borrower creditworthiness, financial strength, property performance, and overall lending risk.
- Why DSCR Matters: DSCR is a critical factor in determining loan approval, maximum borrowing capacity, and financing terms. Understanding and optimizing DSCR can help commercial property owners secure financing that supports their investment objectives. More, most Lenders mandate annual DSCR analysis while assessing financial performance of property upon which loan was made. This Global Debt / Cash Flow analysis can be tied to DSCR in ways that can affect the loan and lender relationship.
Commercial financing consultations
Whether you are a seasoned commercial property owner or a first-time investor, Paul is here to help.
Preliminary consultations are complimentary. Together we will learn more about each other and your property that will lead to strategies that will assist you in achieving your real estate investment goals.
Paul can provide referrals who can speak directly to what it is like to have him work your file needs.