Summary
Vestin is a short-term real estate and construction lender, which holds a mortgage
broker's license in Nevada. Vestin obtains borrowers through referrals, repeat business,
or other licensed brokers in compliance with Nevada law.
Since 1995, Vestin has brokered approximately 900 loans for approximately 1,500 borrowers
totaling about $2 billion. We have serviced approximately 120 loans totaling approximately $442
million. Most of our loans are between $2.5 million and $10 million, although we have
brokered several loans between $10 million and $45 million. Our loans range from a two-month
term to a three year term, however a majority of our loans are for a term of 12 months. We
will consider extending loans for up to an additional year if a borrower has performed as
agreed and meets other qualifying criteria.
Vestin serves an assortment of borrowers, seeking loans on income, acquisition, development
and construction properties, as well as raw or unimproved land. We also serve those who need
very short term, bridge financing, allowing them time to obtain permanent financing. Our
borrowers receive the advantage of loans that can be rapidly processed without common banking
delays or enormous documentation. In addition, a bank loan is often unavailable due to federal
and local regulations. The loan is otherwise virtually "bankable", due to substantial equity
in the borrower's property.
Testimonials
Desert Land, LLC - $34,500,000.00 Loan
Loan Types
Commercial Real Estate Loans, Land, commercial or residential lot development, vertical
construction loans, bridge loans on existing income producing properties that need rehabilitation
or repositioning (typically multifamily, office or retail projects)
Loan To Value (LTV)
Land – Between 35% and 60%
Acquisition and Development – Between 50% and 60%
Vertical Construction Loans – Between 60% and 75%
Commercial Real Estate Loans – Up To 75%
Bridge – Up to 75%
Key Underwriting Criteria
In general, Vestin focuses on three things:
1. LTV – We look for realistic valuations and lend within the above LTV ranges depending upon
property type, location and other relevant factors.
2. Loan To Cost (LTC) – We always need to know the cost of the property, regardless of whether
the borrower is purchasing the property as part of the proposed transaction or the borrower
already owns the property. In the case of a construction loan or development loan, this means
we need to know the cost of the land. We will also need the cost breakdown for all hard and
soft construction costs.
3. Exit Strategy – We need to know the borrower’s background and experience with completing
rojects similar to the proposed project and the borrower’s access to takeout financing for the
project.
If a well-written summary of a loan request includes the above information, it should not need
to be longer than one or two pages. If there is a good fit, we will request further diligence
materials (see Key Information Requirements below).
Key Information Requirements
- Preliminary Title Report
- Purchase or option agreement for the property, including all extensions
- Documentation for the borrowing entity (articles of organization, operating agreement,
partnership/trust agreement, etc.)
- Phase I Environmental Report
- Appraisal of the project “as is”, “as completed” and/or “as stabilized”
- Current financial statements for the guarantors. For income producing properties, current
and historical operating statements.
- Complete set of architectural and engineering plans for the project
- Complete construction cost breakdown
Interest rates
Depending on the loan type and speed required. Land will be highest, vertical construction the
lowest, with development and bridge loans falling somewhere in between. The range is typically
between 12.0% and 15.0%.
Points
Also depending on the loan type and speed. Points will be more tied to speed and extent to
which borrower pushes the envelope on underwriting (LTV, LTC/cash in the deal, etc.). Points
will range from 4.0% and up.
Term
The majority of our Loans are 12 months with additional fees generally required for extension
beyond the initial period.
Personal Guarantees
Personal guarantees are always required.
Size
Typical loan size is $2.5 million to $15 million. We have on occasion brokered loans over $10
million and up to $45 million.
Geographic Area
We have primarily brokered loans in Nevada, Arizona, California, Colorado, Texas and Hawaii.
We have brokered loans in other states, but these were primarily accommodations for existing
repeat borrowers. These states include Washington, Oregon, Idaho, Utah, New Mexico, Louisiana,
Alabama, Florida, North Carolina, Oklahoma, Wisconsin, and New York. While we do not have a
track record of lending in these states, loan submissions will be considered for these states.
What is the Next Step?
If this is of interest to you please contact:
Daniel Stubbs (dstubbs@vestingroupinc.com )
Office: (702) 921-5530
Facsimile: (702) 921-5590
We look forward to serving you with a Commercial Real Estate Loan, Land Loan, Construction Loan,
Development Loan, Commercial Loan, Bridge Loan, or Acquisition Loan. Let us assist in your success
with a commercial real estate loan today!