FINANCING
VSM Capital is a full service commercial mortgage brokerage firm which assists owners, developers and investors of Canadian Commercial Real Estate in obtaining mortgage financing from banks, credit unions, trust companies, pension funds, insurance companies as well as private mortgage funds and private investors. VSM Capital is active in all aspects of mortgage financing including:
Construction and Land Development Financing
| Purpose: |
VSM Capital can arrange construction financing to assist developers with financing the construction of residential, retail, office, industrial, hotel, self-storage and land development projects. |
| Loan To Cost: |
Up to 80% – 85% of cost. |
| Loan To Value: |
Up to 65% – 75% of value. |
| Term: |
Up to 3 years. |
| Amortization: |
Typically Interest-Only loans can be obtained. |
| Security: |
1st and 2nd mortgages available. |
Land Acquisition Financing
| Purpose: |
VSM Capital can arrange land acquisition financing for developers who are acquiring land for near-term development. Typically these loans are used to finance the rezoning process which happens after acquisition, or alternatively to obtain building permits and pre-sales in order to meet the requirements of construction loans. |
| Loan To Cost: |
Up to 50%. |
| Loan To Value: |
Up to 50%. |
| Term: |
Up to 24 months. |
| Amortization: |
Typically Interest-Only loans can be obtained. |
| Security: |
1st mortgages available. |
Term Financing
| Purpose: |
VSM Capital can arrange term debt for the acquisition or refinance of residential apartment buildings, retail buildings, office buildings, industrial buildings, hotels and self-storage buildings. |
| Loan To Cost: |
Not applicable. |
| Loan To Value: |
Up to 65% – 75% of value. |
| Term: |
Up to 10 years. |
| Amortization: |
Up to 25 years. |
| Security: |
1st and 2nd mortgages available. |
Mezzanine Financing
| Purpose: |
VSM Capital can arrange mezzanine financing to assist owners and developers with the equity requirements of conventional mortgage financing. Mezzanine financing is a hybrid of debt of equity which is typically used in construction loans, for condo-inventory loans, as well as to assist with re-leasing or renovating a vacant building. |
| Loan To Cost: |
Up to 80% – 90% of cost. |
| Loan To Value: |
Up to 75% – 85% of value. |
| Term: |
Up to 3 years. |
| Amortization: |
Typically Interest-Only loans can be obtained. |
| Security: |
1st and 2nd mortgages available. |
Equity / Joint Venture Financing
| Purpose: |
VSM Capital is able to raise equity as well as arrange for financial joint venture partners for owners and developers of commercial real estate. |
| Loan To Cost: |
Not applicable. |
| Loan To Value: |
Not applicable. |
| Term: |
Not applicable. |
| Amortization: |
Typically a preferred return is charged, as well as a pre-determined percentage of the profits to be made. |
| Security: |
Typically an assignment of the shares of the Borrower is required. |
VSM Capital assists its clients and adds value by simplifying the mortgage approval and funding process. Some of the services included are as follows:
- After analyzing the deal, VSM Capital will present its client with the various mortgage structures that are available to address the deal;
- A clear, concise mortgage presentation will be completed by VSM Capital which clearly communicates to the potential lenders the merits of the proposed deal;
- VSM Capital will negotiate with potential lenders on behalf of its clients to obtain the best possible financing package for each deal;
- VSM Capital can co-ordinate the procurement of all third-party reports needed for a mortgage (appraisal report, environmental report, building condition report, quantity surveyors report, insurance consultant, accountants, solicitors, etc.);