Commercial mortgage — the Carolinas and the Southeast
Not on your salary, not on a credit score. Five units and up, income-producing, owner-occupied or transitional — the property is the borrower and the rent roll is the application.
The last figure is the important one. Chordline Commercial Capital is a fictional company built to present a website template; every number on this site is illustrative arithmetic. What that means, precisely.
Coverage span — indicative
IllustrativeThirty-year amortisation assumed. This tests coverage only — the full sizing page runs loan-to-value and debt yield beside it and names the constraint that binds.
The arithmetic
Commercial sizing is not a negotiation, it is an intersection. Every lender runs the same three tests and takes the lowest answer. Knowing which one is binding tells you exactly what would move the number — and what would not.
A share of what the property is worth.
Caps the loan at a percentage of the lesser of price and appraised value. It is the test everybody knows and the one that binds least often.
A higher appraisal helps. A lower rate does nothing.
What the income can actually pay for.
Net operating income divided by annual debt service. A 1.25× floor means the property must earn a quarter more than the loan costs, every year.
A lower rate or a longer amortisation helps. A higher appraisal does nothing.
Income alone, with the rate and the appraisal removed.
NOI divided by the loan. At a 10% floor the loan is exactly ten times income — a lender’s answer to “what if the value is wrong and rates move?”
Only more income helps. Nothing else touches it.
Programmes
A warehouse and a hotel are not the same credit. One has an eleven-year lease and the other reprices tonight, so they carry different coverage floors, different reserves and different leverage. These are the eight this template covers.
Five units and upMultifamilyAcquisition and refinance of stabilised and lightly value-add apartment property, five units and above. Terms and underwriting
Tenants, terms, rolloverRetail & mixed-useNeighbourhood centres, unanchored strips, single-tenant net lease and ground-floor retail beneath apartments. Terms and underwriting
Clear height, dock, powerIndustrial & flexWarehouse, distribution, light manufacturing and flex/service-centre property. Terms and underwriting
Term, TI, and honestyOffice & medicalSuburban office, medical office and single-tenant office, underwritten conservatively and openly. Terms and underwriting
A loan with a date on itBridge & value-addTwelve to thirty-six months of interest-only debt against a business plan and a defined exit. Terms and underwriting
Draws, reserve, completionGround-up constructionVertical construction debt with a draw schedule, a funded interest reserve and a completion guarantee. Terms and underwriting
Owner-occupied, low injectionSBA 504 & 7(a)Owner-occupied real estate for operating businesses, with a smaller equity injection than conventional debt. Terms and underwriting
Storage, hospitality, studentSpecialty assetsSelf-storage, limited-service hospitality and purpose-built student housing. Terms and underwritingHow a deal moves
Property, purpose, and the number you need. Ten minutes, before anybody sends a file.
The three tests are run on your figures and the binding constraint is named. If the number does not work, you hear it here.
Structure, pricing, conditions and what has to be true. A term sheet is a proposal, not a commitment — the page says so.
Appraisal, environmental, property condition. These are ordered after signature and they sit on the critical path of nearly every closing.
The T-12 is reconciled, the rent roll is tested, the sponsor is reviewed. Adjustments happen here, not later.
Legal, title, insurance, and funding. On a real site this stage would carry a timeline; this one does not, because it would be invented.
No closing-time figure appears anywhere on this site. Every number of that kind on a demonstration site is invented, and this one would be too. The stages in detail.
Capital markets
The same building gets a different answer from a credit union, an agency programme and a debt fund — different terms, different recourse, different speed, different exit penalty. Matching the source to the plan is most of the work.
Illustrative scenarios
Commercial lenders announce closings on tombstones. This one has none, so these are worked examples instead — every one of them balances, and every one of them is invented. Turn a card over for the terms.
$12,190,000
S-01 — indicative terms
| Value / cost | $18,400,000 |
|---|---|
| Underwritten NOI | $1,104,000 |
| Loan | $12,190,000 |
| Rate | 6.35% |
| Amortisation | 30 yr |
| Term | 10 yr |
| Interest-only | 2 yr |
| Coverage | 1.43× at IO |
At a 1.25× floor the coverage test caps the loan at 66.2% LTV — below the 70% the LTV test would have allowed. Two years of interest-only lifts early cash flow without changing the sizing, because the coverage test was run on the amortising constant.
Calculators
Commercial maths is not residential maths with bigger numbers. There is no PMI here and no thirty-year term — there is coverage, debt yield, an interest-only window and a balloon on a date. Every result is a shareable link.
Notes
Sizing — 7 minThe constraint that bindsThree tests decide the size of a commercial loan. Knowing which one is stopping you is worth more than knowing all three.
Structure — 6 minThe balloon nobody mentionsA thirty-year amortisation with a ten-year term repays about a fifth of the principal. The rest is due on a Tuesday.
Underwriting — 8 minReading a T-12 the way an underwriter doesThe operating statement you send and the operating statement a credit committee reads are not the same document.Send the shape of it. On a real site a person reads this; here it validates, confirms on screen and stops — which is the honest version of a demonstration.
Four colour schemes. Each pair was measured on the surface it is actually painted on, in both themes.
Studio — internal, not shown to visitors
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