Flexible Rental Hold Capital with Limited Prepayment Penalties:
- Stabilized or unstabilized properties
- 1-4 units, multifamily (5+ unit) and mixed-use buildings
- Terms from 3 to 10 years, full-term interest only available
- Purchase, refinance and/or stabilization
- Competitive interest rates
- Fully prepayable, subject to sliding fee structure
- One-time close option from construction loan
EXPERTISE
Members of our senior leadership team have decades of experience managing multiple types of projects, both from a lender and operator perspective.
ALIGNMENT
Genesis Capital features an in-house construction team that understands how important cash management is to a project. This group plays an integral part in the upfront underwriting process through project completion, creating a seamless experience for clients.
RELIABILITY
You can count on us. Unparalleled funding and construction draw execution. Our high-touch, personalized service approach means your needs are taken care of every step of the way.
Rental Hold Loan Program
GENERAL LENDING PARAMETERS (AS OF JANUARY 2023)
For experienced residential rental operators and professional real estate investors that have been in business for at least 5 years or own/operate more than 10 units. Pricing subject to underwriting and market conditions.
| PROPERTY TYPES |
Single Family (SFR) – Residential properties consisting of 1-4 units. Multifamily & Mixed-Use* - Residential properties consisting of 5 or more units *Mixed-Use properties that derive >25% of the property’s gross rents from commercial space or where the commercial space exceeds 25% of the property’s overall square footage, are generally not eligible |
| UNDERWRITING & GUARANTY STRUCTURE |
Loan and guaranty structure customized to sponsor/project LTV: 65% to 80% |
| LOAN PURPOSE | Purchase, refinance and/or stabilization of property types described above |
| COLLATERAL | First Deed of Trust and Assignment of Rents on acceptable property types. No subordinate financing permitted without written consent. |
| LOAN AMOUNTS | Multifamily, BTR Communities & Mixed-Use: starting at $500,000 SFR portfolios: project specific Individual SFR property: $150,000 to $3.5 million |
| TERMS & REPAYMENT | Interest only, subject to limited prepayment penalties: 3-year term: 3/2/1 fee structure 5-year term: 3/2/1 fee structure 7-year term: 4/3/2/1 fee structure 10-year term: 5/4/3/2/1 fee structure |
| LEASING & MANAGEMENT REQUIREMENTS | No leases with terms greater than 24 months. Borrowers can self-manage; however, additional due diligence may be required. A background in professional property management is needed. |
| FINANCIAL COVENANTS | Loans secured by Multifamily, Mixed-Use or bulk SFR portfolios (5+ units) will likely include minimum debt service coverage ratio (DSCR) covenants at levels and cadence to-be-determined during under-writing. For loans in the stabilization period, Genesis will establish periodic lease-up hurdles. |
In general, Genesis does not require the borrower pay taxes and insurance into an escrow account. However, there may be certain circumstances where Genesis may require a Loan Administrative Reserve or a Deferred Maintenance Reserve
