Gentai Capital

GENTAI CAPITAL — LENDING GUIDELINES GENERAL INFORMATION Gentai Capital provides residential and commercial real estate financing. Gentai describes itself as a creative debt-solution provider for quality real estate developers and investors. Gentai focuses on creative loan structures, effective underwriting, dependable execution, competitive terms, and financing structures tailored to the transaction. RESIDENTIAL LENDING Gentai Capital offers residential mortgages with interest-only payments. The residential mortgage term is one year. Residential loan amounts range from $100,000 to $5,000,000. The maximum residential loan-to-value ratio is up to 75%. Gentai Capital offers both first and second residential mortgages. The residential lender fee ranges from 1% to 2%. Gentai does not use GDS or TDS limits for its residential mortgage program. The minimum Beacon credit score for residential lending is 620. ELIGIBLE RESIDENTIAL PROPERTIES Gentai Capital considers single-family homes, multiplex properties, townhouses, and condominiums for residential financing. RESIDENTIAL LENDING AREAS Gentai Capital provides residential financing in urban areas of British Columbia, Alberta, and Ontario. Properties in suburban and rural areas of British Columbia, Alberta, and Ontario may be considered on a case-by-case basis. Suburban and rural properties must not be treated as automatically eligible. COMMERCIAL LENDING Gentai Capital provides commercial mortgage solutions to real estate developers and investors. Gentai offers commercial bridge financing, income-producing property financing, owner-occupied property financing, and select pre-development loans. Commercial mortgage rates may be available as low as 5.5%. This is a starting rate and must not be treated as a guaranteed rate for every commercial transaction. Gentai Capital operates as a private bridge lender. Its commercial loans are short-term loans with terms that are generally between one and two years. A clear exit strategy is important to Gentai when it evaluates a commercial loan. Gentai underwrites the expected exit based on the borrower’s ability to execute the proposed business plan. COMMERCIAL LENDING MARKETS Most of Gentai Capital’s loans are located in primary and secondary core markets in British Columbia, Alberta, and Ontario. Gentai may consider a tertiary market if the market has a population of at least 50,000 people. Gentai may also consider a smaller market when it is located in close proximity to a primary or secondary market. Although Gentai describes itself as serving real estate developers and investors across Canada, the specific market guidance provided states that most of its lending is in British Columbia, Alberta, and Ontario. Do not assume that a property in another province is eligible without confirmation from Gentai. COMMERCIAL FUNDING TIME The time required to fund a commercial loan varies from one transaction to another. In certain situations, Gentai Capital may be able to provide commercial funding within 10 business days. Funding within 10 business days is not guaranteed. The complete commercial lending process generally takes approximately four to eight weeks. COMMERCIAL DEAL SUBMISSION Commercial mortgage applications should be submitted directly to one of Gentai Capital’s commercial originators. Brokers should contact a Gentai commercial originator directly and send the complete financing package to the commercial originator by email. The provided submission instructions direct brokers to submit commercial transactions by email to a commercial originator rather than through Filogix or Velocity. LAND VALUATION AND DEVELOPMENT SITES For every land valuation, Gentai requires a pro forma or development budget for the proposed development. The pro forma or budget must be based on the “as of right” development format and the density permitted on the site under the applicable Official Plan. Gentai uses this information to determine whether the proposed project has enough profitability to support the land value. Gentai will not provide value for a site appraised on an “as approved” basis when entitlement risk remains and the required approvals have not yet been obtained. IMPORTANT PRODUCT DISTINCTIONS The residential loan amount, maximum 75% LTV, one-year term, 1% to 2% lender fee, minimum 620 Beacon score, and absence of GDS and TDS limits apply to Gentai’s residential lending information. Do not automatically apply Gentai’s residential lending criteria to a commercial transaction. The commercial starting rate of 5.5%, general one-to-two-year term, commercial property solutions, exit-strategy requirement, funding timeline, submission procedure, and land-valuation requirements apply to Gentai’s commercial lending information. Do not automatically apply Gentai’s commercial lending criteria to a residential transaction. GENTAI CAPITAL HEAD OFFICE Gentai Capital’s head office is located at Suite 200, 3600 No. 3 Road, Richmond, British Columbia, V6X 2C1. The head-office telephone number is 604-638-1580. The fax number is 604-630-7266. The toll-free telephone number is 855-982-6699.