Commonly Asked Questions and Answers

Will it take too long to find out about a loan or locate a lease space?
It would take 5-10 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 tenants personal assets if the lease defaults. At Pen Pointe, we advise all clients not to sign as a personal guarantor for a lease 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 & development loan take to close?
An acquisition & 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 & 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.

Are there any fees if I elect Pen Pointe to handle the financing on a commercial loan or find a lease 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.


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