What sets the equity check on an Arizona commercial purchase

People searching for a commercial down payment in Arizona usually want a single percent. Lenders do not underwrite that way on income property. The cash due at closing is what remains after the senior loan the lender will actually make, and that loan depends on the property type, the income, the appraisal, and the sponsor. Debt service coverage and debt yield are names of tests. This note does not assign a passing score to either one. The coverage explainer, which also refuses a universal number, is what counts as DSCR. The leverage explainer is loan to value. A longer walk through proceeds is how much you can borrow. This page is the equity check. It is not a copy of those three.

Bring the purchase contract, the rent roll, and a sources-and-uses draft that shows your cash as a plug, not as a slogan. If the appraisal comes in differently from the price, the lender's proceeds follow the appraisal rules in that lender's guide, not a percent this office prefers. Sponsor experience matters because a lender may ask for more cash, a reserve, or a guaranty when the sponsor is new to the property type. Those are conditions in a term sheet. They are not a table.

What SBA actually says a 504 loan cannot be

SBA's 504 loan page says certified development companies are authorized to work with a senior lender on 504 financing. It lists uses that include buying, building, or renovating buildings or land, and machinery or equipment with at least 10 years of remaining life. It also points to a refinance of certain qualified debt under 13 CFR 120.882. The same page says 504 proceeds cannot be used for working capital or inventory, or for speculation or investment in rental real estate. Terms on the page are 10, 20, or 25 years. SBA describes the program as long-term fixed-rate financing. This note does not turn that description into a coupon.

The same SBA page introduces the program with one ceiling in the hero and states a maximum in the body that is not the same figure. The certified development company and the Standard Operating Procedure in force on the day you apply control. This note will not pick the number for you, and it will not invent a 10 percent or 15 percent borrower injection. Those splits were not on the page that was opened. For an investor buying Arizona rental property, 504 is the wrong shelf if the use is the one SBA calls investment in rental real estate. An owner who occupies the building may still ask an SBA lender and a CDC. Capital Market Funds arranges that introduction. It is not an SBA lender and it is not a CDC. The arrangement page is Arizona SBA 504. The calculator that follows the debenture math you type is SBA 504 calculator.

Acquisition is the purpose page, not a down-payment rule

The financing purpose, once you know the property is commercial and investor-owned, is acquisition. The DSCR calculator will divide numbers you enter. It will not tell you the equity a Phoenix lender wants, because that lender has not seen the file. One-to-four-unit homes, whether or not the buyer lives there, are outside this note.

Capital Market Funds is not a Fannie Mae DUS lender. Apartment acquisitions of five or more units can be an agency conversation with an approved lender, and the equity is still that lender's term sheet. The office is 7373 E Doubletree Ranch Rd #255, Scottsdale, AZ 85258. The phone is (480) 495-8072. Capital Market Funds, LLC - CBK-2007014 - Commercial Mortgage Banker and NMLS 1445066. A phone call is a request to look at the contract. It is not a commitment and not a statement of how much cash you must bring.