Commercial and construction lending—with hands-on expertise
Rohan Investments Services is a commercial and construction mortgage lender, specializing in higher ratio commercial development mortgages for small to medium size developers in Alberta, Saskatchewan and Manitoba. More than a bank or a brokerage, Rohan Investments offers commercial and construction lending backed by decades of local development experience and a deep understanding of the Western Canadian market.
Financing by developers, for developers
We’re developers and entrepreneurs too, and know what it takes to see a project through to completion and sale. And because Rohan Investments isn’t a bank, our approvals process isn’t bogged down by bureaucracy and committees several provinces away. We can assess each development on its merits, and offer advice and solutions to the problems our customers face. That means we’re as comfortable with financing independent projects in rural areas as we are with low-risk, franchised developments in major centres.
Committed to our customers’ success
Our approach to commercial and construction lending is to take an active role in our customers’ success by reducing delays caused by securing financing, so they can spend their time getting their projects finished. We see ourselves as partners as well as lenders, and take the time to get to know our customers and their projects during the construction process. It’s also why Rohan Investments specializes in mortgages from $1 million to $12 million for land development, hotel and motel construction, condominium construction and industrial developments. We’re most experienced and comfortable in these areas, making us uniquely positioned to help our customers’ projects succeed.
Our Expertise
The advantage of experience
Combined, the Rohan Investments Services team has more than 45 years of experience in developing and operating hotels and food and beverage operations, and leading construction on commercial projects. This experience gives us a unique insight into commercial and construction mortgage lending – we see our customers’ projects from their perspective, and not a bank’s perspective. With this insight, Rohan Investments can provide tailored, effective financing solutions that other lenders might miss or pass on.
Frequently Asked Questions
How long does the approvals process take?
Again, there is no standard answer. If a developer has all the information we need, Rohan Investments can fund the project in as little as two weeks. However, what we can guarantee is a quick expression of interest and a term sheet with conditions that need to be met within a week.
How much equity should I have in my project?
While there is no standard answer to this question, a good rule of thumb is 25% of the total cost of the project. However, every project and every borrower is different, and it usually depends on the amount of the developer’s liquid assets. A developer with liquidity can put minimum equity into a deal, knowing they have the cash reserves to inject additional capital if required. A smaller developer is better off not borrowing to the maximum loan-to-value ratio, leaving the lender flexibility to advance additional funds if required.
The smaller developer should also have a cash reserve available to fund expenses between draws, in order to avoid problems like builders liens if they can’t pay trades or contractors on time. Most project loans will have an interest reserve built in (and not advanced), to avoid draining the developer of working capital while the project is under development. However, the developer should still account for time overruns and funding interest payments. A fully developed cash flow, and use of cash projections, can highlight potential problems before they arise.
What information does Rohan Investments need me to provide?
A good starting list would include:
- Personal Net Worth Statements of the borrowers
- Most recent personal Notices of Assessment of the borrowers
- 3 years financial statements for all related corporations
- An appraisal of the project by an AIC-designated appraiser
- Any development and building permits
- A detailed construction budget and cash use projection
- A resume of the developer, indicating past experience
- Phase 1 Environmental, and Soils/Geo-Tech report
How much does Rohan Investments charge in fees?
Upon acceptance of a term sheet offering, we typically ask for a $2500 non-refundable payment to cover expenses. Rohan Investments charges a fee of 1% – 2% of the funds advanced, either capped into the loan amount or withheld from proceeds, depending on circumstances.
Contact Us
To learn more about how our commercial mortgage services can help get your project completed, fill in the form below and one of our commercial and construction lending professionals will contact you within 24 hours.
Corporate Head Office
Rohan Investments Services Limited
Address: 17403-114 ave
Edmonton, Ab T5S2R9
Phone: 7809911234
Fax: 7804812323