REO FINANCING

A10 Capital provides Real Estate Owned (REO) financing to purchasers of commercial property being sold by a bank. Our collateral-based underwriting approach to REO financing hleps facilitate an expedient exit from a property. We can also pre-approve REO financing on commercial properties in the bank's portfolio, making the REO property more attractive to a third-party buyer.

OUR REO FINANCING PARAMETERS

  • Loan Types: “Nearly Bankable”, Bridge, and Mini Perms
  • Asset-based underwriting (DSCR can be below 1.15:1)
  • 1-5 year terms (preferred term is 2-3 years)
  • Up to 70% LTV (typical is 60%-65%)
  • $500,000 to $10 million individual loan sizes
  • Secured by commercial real estate

BENEFITS OF REO FINANCING TO BANKS

  • Frees up capital
  • Provides a funding source to remove non-performing assets from the bank’s balance sheet
  • Quick decisions and fast funding on REO financing can help the bank close an asset disposition before the buyer gets cold feet
  • Frees up workout / special asset department resources