NO, PetroMAC is a
mortgage broker and has originated hundreds of millions of dollars of loans doing gas station, convenience store
and car wash loans.
2. Do you
pull our credit?
normally will not pull credit. We have the ultimate lender do this as not to pull your score down. You may
use something like Free Credit Report which will give a score and not pull your individual score
many sources do you submit to?
In years gone by we
would have only submitted to 1-2 sources, but because of the credit crunch, we submit to multiple sources
4. Do you
charge up front or application fees?
do not charge up front or application fees for car wash loans.
do you find your sources?
We do "recent
sales" searches, UCC lien filings, Freedom Of Information requests to find the most recent transactions done and
the ultimate lender that did them.
6. Do you
charge in addition to origination that the lender will charge?
If the loan is
being done SBA, normally not. If a loan is done as a 504, no more than a half point, if any, will be charged.
On conventional loans, where there normally is no referral fee, we normally will charge no more than a
7. How do
you determine if you do a loan SBA, conventional or some other basis?
That decision is
usually based on the cash flow of the business since it is easier toq alify for SBA financing with less cash flow
than with conventional due to longer amortization periods and higher advances.
are the rates being charged?
If the loan is
being doing SBA, the rates will be either based on Prime or LIBOR and conventional financing could be based on
Prime, LIBOR, Treasury indexes or some internal rate that the particular bank might have. Since we do not
earn a "premium" on these loans and generate extra commission by charging a higher rate than market, our motivation
is to make sure you have the best rate.
long does it take to get a loan approved?
In years gone by,
it usually took about fourteen business days after receipt of all request documentation. This is NOT the case
now. We like to tell borrower now that it taking about a month for an approval, and that is AFTER we have received
all necessary documentation for a submission.
is the most difficult type of financing to have done?
transactions are usually the most difficult type of financing to be done as there usually is little to no
collateral available and the shorter amortization periods (usually 7-10 years) make it more difficult to have
adequate cash flow for. We do work on these type loans.
11. I am
a New American and I still do not have permanent resident alient status. Can I obtain
You most likely
will not be eligible for SBA or conventional bank financing. In some cases you may be eligible with an investor
Visa. Please submit details and we can give an opinion.
you do construction financing?
Yes, we do ground
up construction, raze and rebuilds and expansion financing.
if I do not have enough for a down payment? Can the seller hold a second?
Yes, however, the
borrower will still need to come up with a good portion of the down payment. If part of the down payment is
coming via a home equity loan or some other source that has to be repaid, this will be considered as Combined Loan
To Value (CLTV). This means the cash flow of the business will need to be able to service two
do you use for appraisals?
We do not and can
not order appraisals, neither can the seller nor the borrower or any mortgage broker. The borrower or seller
can order an appraisal to see if an appropriate amount is being charged for a sales price but the appraisal may not
be used for the loan. We usually try and advocate that companies that specialize in appraising car wash
properties be used as they understand the nuances of the industry.
are the main reasons loans are declined?
The number one
reason is lack of verifiable cash flow. The car wash business is a cash business and frequently tax returns
are not indicative of what the business is actually doing. Other major contributing factors are lack of
direct industry experience (for purchases / construction), insufficient or non-borrowed equity (for purchases /
construction) providing requested documentation in a prompt manner. Sometimes car wash loans are declined due
to environmental issues or local conditions (construction, new competition, etc.)
you have to have an environmental done on the site?
Yes. A Phase I will
always be ordered at a minimum on any SBA or conventional transaction by most lenders.
long does it take to have a Phase 1 environmental done and how much do they cost?
week. Normally a visual inspection of the property will be done and records checked online for any REC's
(Recognized Environmental Conditions) and to see if there are any open files with either ongoing remediation or
monitoring activities that do not have a closed file with the State and an NFA (No Further Action) letter issued.
Phase I environmentals usually cost approximatley $2,000.
long does it take to have an appraisal done and how much do they cost?
been averaging 3-4 weeks to be done. Borrowers can usually pay extra to have the appraisal expedited. Appraisals
normally cost between $3,000 - $3,500.
PetroMAC operate from a centralized location?
NO. All work
from their home. Frequently we will use mail centers (UPS Center, etc.) to receive documentation if the
borrower can not provide via email or fax.