Commercial and Residential Lending
Canopy South Financial (CSF) is a capital funding resource available for a broad spectrum of both residential and commercial projects, which can range from single family home construction, fix and flips, rehab projects, and HPR’s, to multi-family apartments, senior living centers, student housing, mixed use developments and other similar activities.
CSF’s rates are competitive with other private or hard money rates in the region. Our lending rates depend on a variety of factors including the experience and history of the borrower, the nature of the project, the risks and securities involved, and the duration of the loan.
Typically, first position loans are secured entirely by the project, with a promissory note and deed of trust or mortgage as security. If risks seem higher than usual, we may require additional collateral or personal guarantees.
Canopy South issues loans exclusively to business entities, such as LLCs or incorporated companies. We do not extend funding to individuals, private mortgages, or to borrowers or principal participants who intend to reside in the home or building while our loan is in place.
In most cases CSF requires that the loan-to-value (LTV) not exceed 70 percent; however, the Fund reserves the right to adjust this up to 75 percent or higher if appropriate. The LTV is generally based on the after repair or finished value (ARV), assuming CSF is provided solid comps or as-built values and the duration of the loan is relatively short (one year or less). For longer term loans, where little or no added value is taking place, the LTV may be limited to 65 percent of the purchase price.
Timelines for smaller loans can be for as little as 30 days, and larger projects can extend for up to a year or longer. The duration of loans will
depend on the nature of the project. Generally, loans are for the purpose of initial development, renovation, and construction and are not
intended for long term commitments that may take many years to reach fruition.
Typically, all points and interest are collected at project completion, during closing, when the project is either sold to a third party, or refinanced and CSF is removed as a lender. CSF does not normally demand monthly interest payments during the project, unless circumstances call for that arrangement.
Canopy South Financial will also consider situations where the company is in a secondary position. However, due to the additional risks involved, loan rates and points will likely be higher than with first position loans, and there may be additional conditions, including additional collateral, personal guarantees, or lower LTV’s.