Specializing in Commercial and Residential Mortgages.
At Sokha Group, we provide the financing that gets you and your business moving in the right direction.
Sokha Group has years of experience as commercial mortgage lenders, focused on commercial and construction mortgage financing for small and medium-sized businesses. Our ability to foster relationships with proven funders allows us to negotiate with multiple financing sources, providing more flexibility in finding options than traditional funding institutions. We use our expertise to swiftly and competently turn mortgage applications into approvals, keeping your best interests in mind.
Commercial Mortgages
Securing a commercial mortgage for your business requires different steps than taking out a residential loan. One reason is that the buyer isn’t an individual but instead is a partnership or a company. This means that banks have to run credit applications somewhat differently. Lenders tend to look at these loans as riskier propositions, which is why you’re less likely to find posted interest rates.
We invest time and energy to steward the finances to reduce any barriers that prevent you from obtaining your business goals. We are dedicated to securing a mortgage to suit your specific requirements, from small retail mortgages to industrial mortgages and investment property mortgages, among others, a testament to our wide-ranging knowledge and expertise.
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We specialize in:
• Retail
• Restaurants
• Office
• Hospitality
• Gas Stations
• Hotels/Motels
• Golf Courses
• Banquet Halls
• Resorts and Campgrounds
• Apartment Buildings
• Industrial Buildings
• Mix used properties
• Income Property
Keys to Qualifying
There are many benefits to owning your own commercial space, with the main ones being to secure a great location and to control your occupancy costs. By developing a comprehensive package to present to a variety of lending institutions, we take the guesswork and stress out and of the application process.
Debt Service Coverage Ratio (DSCR)
As the primary consideration of most lenders, this is the ratio of net operating income available versus the required mortgage payments. As experts, we deal with many different lending institutions, which have different minimum servicing requirements based on their loan policies for the various asset classes (property types). By knowing this, we can prepare and present your application to the right lenders, which significantly reduces turnaround time.
Loan to Value and Down Payment
Most conventional lenders have a maximum Loan to Value amount of “up to 75%” of the purchase price or appraised value (whichever is less). This means that the minimum down payment required by a borrower to put down on a new purchase or retain as equity on a refinance is 25% of the property’s value, as identified above. This Loan to Value amount is further limited by the borrowing entity, demonstrating the ability to service the required mortgage payments. With property valuations, ever increasing, down payments and/or equity value within properties is commonly 30% or 35%, meaning that the mortgage amount would be closer to 65% or 70%.
Credit History
Lenders put their funds at risk for a predictable and safe repayment stream of principle and interest. With this focus, they believe that the best predictor of future repayment behaviour is a borrower’s past behaviour. Strong business and personal credit profile indicates to lenders that you are committed to meeting the negotiated repayment schedule. That said, don’t be intimidated if your credit profile is not optimal. We have extensive experience improving a variety of credit profiles and obtaining financing with satisfactory rates and terms despite adverse credit history.
Current Business Situation
If you are currently in operation, lending institutions expect your business to be profitable and steady to ensure a sound investment. Examining your business plan and financial projections provide lenders with an inside view of your operation. Sokha Group works collaboratively with you to ensure the key areas that lenders concentrate on are included and emphasized in these reports.
Type of Business
With numerous business types, commercial mortgage terms are based around the business structure as well as the property you want to purchase. This is where Sokha Group excels! We put our innovative solution-seeking methods into practice to ensure you obtain the best financing opportunity.
