Commonly Asked Questions and Answers
Will it take too long to find out about a loan or locate a leased space?
It would take five to ten minutes to find out about a loan provided all the pertinent information was obtained to begin the underwriting process. To find out about lease space, it can take time because we would schedule a consultation with the business owner to find a perfect location for the business.
Will the interest on my loan be tax deductible?
Yes, in most cases the interest you pay on your mortgage be it your business or your home it is tax deductible. Some restrictions may apply to high loan/to value and investment property transactions. Please consult with your tax advisor for confirmation.
Do I have to come into the office to sign documents?
We at Pen Pointe prefer that all clients come to the office so that we can properly identify who we are representing because of all the fraud, and identity theft that has transpired in our world today. Depending upon the circumstances a Pen Pointe representative will meet clients out for their convenience with client provided proper identification; whether it is at home, work or a public place. In some cases, we can overnight paperwork to be signed and returned, this is done on a case by case basis.
Do I have to be a personal guarantor on a commercial lease space for my small business?
No, this is an option that most landlords want just in case the business fails. This makes the landlord comfortable with renting to businesses knowing that a physical body is attached to the lease and they can go after the tenant’s personal assets if the lease defaults. At Pen Pointe, we advise all clients not to sign as a personal guarantor for a leased space which is a non-tangible item, because it can affect future financing if a small business loan was applied for to obtain working capital for the business.
What if my credit score isn’t perfect and financing is needed for our business to obtain working capital?
That is fine. At Pen Pointe we are prepared to offer alternative loan programs to fit your financial needs. We advise all our clients to obtain a Dunn & Bradstreet number for the business, which is how business credit is rated. We can assist our clients in obtaining a D&B number. Please inquire with a Pen Pointe representative.
How long will an acquisition and development loan take to close?
An acquisition and development loan is typically a 30-day underwriting process. This time frame is solely dependent on the client providing Pen Pointe the proper documents to begin the process. If there are delays with the client presenting the necessary paperwork, the time frame may extend up to 90 days. We at Pen Pointe would like to close all acquisition and development loans in a 90-day grace period.
What is CAM and is it mandatory to pay this when leasing a space?
CAM is an acronym for “Common Area Maintenance.” In commercial real estate many companies require a tenant to pay a portion of CAM fees. There are two basic calculations for CAM fees: Variable CAM fees in which the amount the tenant is required to contribute increases based on a number of factors: and Flat CAM fees where the fees are a fixed amount. CAM expenses are based on a pro rata basis. Simply put, the more square footage a tenant leases, the greater percentage of CAM the tenant pays. CAM fees are a mandatory expense that vary considerably and cover a wide range of expenses landlords pay, including: repairs, insurance, property maintenance, and even in some cases salaries of administrative staff who manage property.
What is NNN and is mandatory when signing a lease?
"NNN" is a term for a commercial net lease in which the tenant is responsible to pay the common area costs or a portion for its leased space in addition to its lease rate. The precise expenses that are passed through to the tenant are usually specified in a written lease agreement and are generally pro-rated among all the tenants based on the square footage of the area occupied by the tenant. It is usually determined by the lessor rather or not it is standard for the particular lease space.
Are there any fees if I elect Pen Pointe to handle the financing on a commercial loan or find a leased space for my business?
Yes, there will be ‘upfront’ fees required for beginning any loan or leasing process. Some of these ‘upfront’ fees include: appraisal fees, commitment loan fees, environmental fees (if needed) and loan processing fees. These fees are determined by the nature of your financial needs and will be discussed in your initial consultation with a Pen Pointe representative.
If I am a buyer looking to purchase commercial real estate, can Pen Pointe represent me as my agent?
Yes, in addition to specializing in commercial leasing options, we are also a licensed real estate brokerage firm that can help with potential buyers purchasing commercial or leasing properties.
If I am seeking funds for my movie script what will I need to provide to the company to obtain financing?
If you are seeking funds for a movie script you would need to provide a copy of the trans-script, the treatment, the preliminary budget and the projected location of the filming.
Will I need a business plan or business summary when applying for a business loan?
Yes, you would need either a business plan or a business summary when applying for a business loan because you would have to give a reason for the use of borrowed funds and show how the loan will be repaid and provide at least three to five years projections.