Optimized debt finance solutions for small-to-mid market investors and developers. We work with rental owners, fix n flip / fix n rent investors, homebuilders, multifamily investors and developers, land developers, and commercial owners. We correspond with best-in-class bank and nonbank lenders to structure competitive loans for almost any lendable scenario. Hope to earn your business!
Loan Types
- Bridge Loan. 12-24 month interest only balloon note. Plan is to make monthly interest payments out of pocket or with property rental income and repay balloon with property sale or refinancing into a term loan.
- Term Loan. 5-30 year note, usually amortizing. Plan is to make payments with property rental income. For 5-10 year term loans, plan is to repay balloon with sale or refi. For 20-30 year term loans, plan is to pay down the loan over time with the monthly payments, unless you refi or sell before maturity.
Nonbank Clearing Process
Before Application
- Discuss the deal and figure out the right loan program, sizing, parameters, and approximate terms.
Loan Application
- Provide information over the phone, or on a fillable form, along with supporting documentation.
Loan Approval
- Approve lender terms and order appraisal.
Loan Processing
- Work with Nonbank Clearing to meet simplified lender requests including LLC documentation, Title, Insurance, and property / project level info. The lenders usually come up with more info requests.
Loan Closing
- Nonbank Clearing and lender partners coordinate with Closing Agent, Insurance Agent, Real Estate Agents, Borrower / Client, and anyone else needed, to get the loan clear to close and schedule closing.
Calculators
The periods are monthly- for a 30 year mortgage, the # of months = 360.
This is not applicable to a bridge loan, which is a type of balloon loan.
If you don’t yet have the last 12 months (T12) or previous year end financials from the seller or listing agent (or yourself if you are the owner), please get that information. Sometimes people don’t have an income statement on pdf or excel, but they do have a tax return which has the relevant information. Ask if there have been any changes in the tenancy, leases, or expenses since that tax year so you can make appropriate adjustments. Review any existing leases.
To approximate net income from a tax return, take the bottom line net income figure from the first page and add the dollar amounts for “depreciation” and “interest” which should be on a breakdown on the later pages. Check to make sure the tax return does not include other properties.
To use this calculator, you can either input the net income in the gross income field and input $0 for the expense rows, or you can fill out gross income and the 3 expense rows. For a 10 year loan with a 25 year amortization schedule, plug in 300 for “amortization term (# of months)”.
Bridge loans are typically 1-2 year balloon loans, interest only, where the borrower intends to repay the loan by either refinancing (taking out) the bridge loan with a permanent loan, or selling the property and repaying the loan at sale.
The above assumes interest being charged on undrawn amount for any rehab budget. The total interest cost is lower if there is a rehab budget and no interest on the undrawn amount, or if the loan is repaid early and minimum interest is already met. Interest payments are paid monthly by the borrower, often out of pocket if the property is being rehabbed or mid-lease up and there is no tenant in place. If the borrower fails to make interest payments or gets to the end of the loan term and fails to sell or refinance for an amount to repay the bridge loan, then the borrower will be in default, the loan will be accelerated (full balance due immediately), and the property goes into a foreclosure process or workout process where lender takes title.
Lenders underwrite these deals based on borrower’s skin in the game (% of purchase price as down payment), appraised value (as is, and as complete), and borrower’s experience, credit, and assets.
Getting a bridge loan for commercial or residential real estate from a bank generally requires good credit, income history, and track record. Private lenders will write loans based on the property fundamentals and cash down payment from borrower, with less stringent borrower-level requirements, albeit at a higher interest rate.
Rick Bagel
Owner/Originator
Rick Bagel is an expert in real estate development, finance, underwriting, structuring, and loan origination. Decimals and dollars are only part of the equation. Customer service, and high integrity between borrower, broker, and lender, are paramount.
Rick’s work experience includes Cardinal Financial, Conventus Holdings, Morning Sky Capital, Leith Inc, and Wetrock Farm I, LLC. Rick holds a B.S. in Economics from Duke University and an M.B.A. in Real Estate from University of Miami.
Testimonials
"I have been a self-employed contractor for over 20 years. I reached out to several PML’s in the past 3 years with no success for multiple reasons and had set forth on a path to do it on my own with my own money. Out of the blue, I reluctantly took a cold call and I’m glad I did. Rick was honest, to the point and most importantly knowledgeable about not only the financial process but the construction side as well. I am, and will continue to work with Rick and develop this relationship into the future."
"I recently worked with Rick Bagel of Nonbank Clearing on a DSCR loan to refinance an existing mortgage on one of my investment rental properties. Rick displayed an extensive knowledge of the various loan products available for my situation. He was straightforward and extremely helpful in explaining each loan option in vivid detail. He handled the whole process from start to finish with professionalism while also giving it that personal touch. He made the entire process relatively seamless. Thanks to Rick I was able to fulfill my goal of paying off some debt and to continue investing in real estate. I highly recommend Rick and his company, Nonbank Clearing, for obtaining mortgage loan products to help you fulfill your real estate investment goals."
"Rick Bagel Is Awesome!!!! He's Kind And Polite, But A Real Go Getter. He Makes Things Happen. I Have Confidence In Rick. I've Had Two Separate Loans And Rick Made Them Happen For Me. He's Quick, On Point, Keeps You Updated On Business And Gives Great Advice."
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