LOAN SIZE

$500,000 to $3,000,000

LOAN STRATEGY

  • Bridge to stabilization, refinance, construction loan takeout, or sale
  • Managing rollover
  • Lease-up
  • Renovation and reposition
  • Recapitalization

PROPERTY TYPES

Our marketplace supports the following property types:

  • Industrial (owner-user may be allowed on a case-by-case basis)
  • Office (multi-tenant preferred; owner-user may be allowed on a case-by-case basis)
  • Medical office (multi-tenant preferred; owner-user may be allowed on a case-by-case basis)
  • Multifamily (refer to separate multifamily credit box)
  • No ground-up construction

LOAN-TO-VALUE (LTV) MAXIMUM

  • As-is LTV: 65%, or 55% for cash-out refinance
    • LTPP (loan-to-purchase-price), acquisitions only: 65%
    • LTC (loan-to-cost), refinance only: 75%
  • As-stabilized LTV: 60% (only applicable when reserves exist)
  • CLTV and CLTPP (as-is cumulative LTV): 75%; 65% for cash out refinance

Loan advance rates are contingent on loan terms, such as cash-out, loan strategy,
subordination, FICO, and other characteristics.

TERM

6 to 24 months; longer terms will be considered on a case-by-case basis.

LIEN TYPE

First-position trust deeds and mortgages.

LOCATION

United States. Generally, primary and secondary MSAs (excluding South Dakota and
Minnesota). Rural locations (defined in long-form underwriting standards) are excluded.

INTEREST RATE

Generally loans with fixed notes rates of 9.0% or higher.

DUTCH INTEREST

Interest is on the full loan commitment.

RESERVE

Renovation/Tenant improvements and leasing commissions/Interest: Funds to be held in a “fund control” escrow account controlled by Aryming or Aryming-approved vendor, and subject to third-party progress inspections.

PARTICIPATIONS/SECOND LIENS

We allow pari passu and B-piece participations, second liens, or for the lender to take an investment position in Borrower Entity; however, such positions cannot be transferred or sold without Aryming approval and right of first refusal.
All subordinate liens must be co-terminus with or mature after the first lien.

AMORTIZATION

Interest-only or amortizing loans are acceptable.

RECOURSE

Full recourse in the form of a personal guaranty is required. Personal guaranties are required from an individual or individuals with a minimum combined equity stake of 50% in the borrowing entity. Recourse will be joint and several. Full recourse includes repayment, environmental indemnity, and completion guaranties for all renovation work.

MULTI-COLLATERAL

May be allowed on a case-by-case basis.

LOAN PROCESSING

LOAN PROCESSING

LOAN DOCUMENTS

Lender must use documents provided or approved by Aryming. For table funding, the documents will be in the lender’s name and then simultaneously assigned to Aryming. For funding into origination, the documents will be in Aryming’s name.

TITLE REPORT

A preliminary title report is required. Prior to closing, a long-form title commitment with a final title policy or a closing protection letter (agent authorization letter in NY) with ISAOA language must be received.

VALUATION

All valuations must include two approaches to value (sales comparison and income), including interior and exterior photos, and provide an insurable value.

  • Loans greater than or equal to $1,500,000
    • MAI appraisal required
  • Loans under $1,500,000
    • BPOs are not accepted
    • Commercial valuations from a Aryming-preferred vendor are acceptable unless the complexity of deal warrants a full appraisal (determined on a case-by-case basis)
    • Appraisals prepared by a licensed appraiser in the state of the subject collateral are accepted
  • Loans with renovation reserves require appraisals for both as-is and as-stabilized value.

FUND CONTROL & RENOVATION MANAGEMENT

Aryming requires an approved third party to manage the renovation draw process, including inspections. Upon submission of draw requests (monthly), the approved third-party renovation management firm will conduct progress inspections and recommend approval for the release of funds. Aryming will hold renovation funds and reimburse the borrower for work completed.

SERVICING

Aryming will be the master servicer with a third party retained as the sub-servicer.

BORROWER/GUARANTOR CHARACTERISTICS

BORROWER/GUARANTOR
CHARACTERISTICS

BORROWER TYPE

U.S. single purpose entity (SPE) required; non-SPEs may be considered on a case-by-case basis.

BORROWER/GUARANTOR CREDIT SCORE

Credit report dated within four months required. Average FICO score of the guarantor must be 600 or higher

BANKRUPTCY 

Borrower and guarantor must both be at least one year removed from discharge/dismissal, but may be acceptable with certain mitigating circumstances.

BORROWER/GUARANTOR TRACK RECORD

  • Must demonstrate current or recent past experience with subject asset class
  • Guarantor must submit a personal financial statement that includes a schedule of real estate

OFAC (BACKGROUND) CHECKS

Required for all borrowers and guarantors.

BORROWER ELIGIBILTY

A Certificate of Good Standing as a U.S.-domiciled company or trust is required.

INSURANCE REQUIREMENTS

INSURANCE REQUIREMENTS

TITLE INSURANCE

Aryming requires all of the following to be provided:

  • ALTA 2006 long-form policy
  • Minimum coverage of 100% of loan balance or maximum allowed
  • Closing protection letter, addressed to originator and “its successors and/or assigns” (if applicable)
  • Signed escrow instructions
  • Copies of all title exceptions to review
  • Additional endorsements required: ALTA 9 endorsement, access endorsement, environmental endorsement, and survey endorsement

PROPERTY, CASUALTY, LIABILTY, AND OTHER INSURANCE

The following conditions must be met:

  • Coverage must equal the lesser of replacement cost or loan amount
  • Lender must be listed as mortgagee, loss payee, or additional insured (ISAOA language)
  • Coverage must include fire and extended perils, and other hazards customary to the area
  • General liability coverage: $1,000,000 per occurrence and $2,000,000 in aggregate
  • Flood insurance required for FEMA-designated special flood hazard area
  • Earthquake coverage required in high-risk zones
  • Storm, hail, and wind coverage may be required
  • Business interruption coverage is required

OTHER REQUIREMENTS

OTHER REQUIREMENTS

SURVEY

An ALTA survey is not required on loans less than $3,000,000.

ENVIRONMENTAL REPORT

A database search is required for all loans. A Phase I is not required unless environmental issues are uncovered and warrant further investigation.

PROPERTY

Current rent roll and the most recent property financials are required.

PROPERTY CONDITION REPORT

Generally not required.

SEISMIC REPORT

May be required in high-risk zones.

ZONING

Zoning report or zoning letter issued by third party or municipality is required in all cases where a recent or proposed change in use exists.

AGREEMENTS

Aryming requires the following current, executed agreements to be provided:

  • Property management and leasing agreements (if applicable)
  • Renovation contract (if applicable)

ASSIGNMENTS

Assignment of leases and rents; assignment of property management and leasing agreements.

LEASES/ESTOPPELS/

SUBORDINATION &

NON-DISTURBANCE AGREEMENTS (SNDAS)

Leases, tenant estoppel certificates, and subordination and non-disturbance agreements (SNDAs) are required for tenants (i) leasing greater than 20% of total rentable square feet, (ii) representing over 30% of revenue, or (iii) with remaining term greater than three years.
Tenants that have yet to move in will not be counted in current income.

ADDITIONAL REPORTS

Aryming may require additional items as needed.