Program workspace

“Not planning the perm refi at bridge origination. Bridge loans are structurally short-term; sponsors who plan the perm refi at bridge close (rather than at month 18) avoid the execution-pressure scenarios.”

“Not planning the perm refi exit at bridge origination. Hotels stabilize slower than multifamily — perm refi underwriting takes 90–150 days (longer if SBA 504). Start the perm refi process 6+ months before bridge maturity.”

“Occupancy confirmation — typically 90%+ occupancy for multifamily and retail; 80%+ for office”

“Office and retail properties present unique challenges for hard money lenders because their values depend heavily on lease structures and tenant quality. However, experienced hard money commercial lending firms regularly fund these assets for repositioning, tenant improvement, and lease-up strategies. Mixed-use properties, combining ground-floor retail with upper-story residential or office space, are particularly well-suited for hard money financing when the property needs renovation before it can attract quality tenants and command market rents.”

“Origination fees, often called “points,” range from 1% to 5% of the loan amount. One point equals 1% of the total loan. A $2 million hard money loan with a 2-point origination fee costs $40,000 at closing. The number of points charged depends on several factors: loan size (larger loans often command lower point percentages), borrower experience, property type, and market competition. Many lenders also charge processing fees, underwriting fees, and legal fees that add to the total closing cost. When comparing hard money lenders business loans side by side, always calculate the total cost of capital , not just the interest rate. A lender offering 10% interest with 3 points may cost more over a 12-month hold than a lender at 11% with 1 point.”

“Custom lending solutions for IHG branded hotels, focused on intermediate-term needs AVANA IHG Co-Lending Construction Program Financing Parameters Loan Amount $5MM to $30MM Timing to Close Within 45 days of LOI acceptance LTV The lesser of 75% of "as-is" value or 70% of "as-stabilized" value Loan Term Up to 3 years + Annual extension(s) Interest Rate avid, Atwell Suites: 1-Month SOFR + 4.00%, Floor of 8.00% Amortization Interest Only; Principal at maturity Lien Position Senior secured first mortgage or DOT Recourse Personal Guarantees Required Exit Fee 1.0% Origination Fees 2.0% Deposits Expense deposit to cover third-party reports, legal fees and other customary deal costs Sponsor Experience 5 years+ in industry Guarantor’s Credit 680+ FICO Target Markets Top 200 MSAs in the USA “Capital for a Better Tomorrow.” To apply, scan the QR code or contact our experienced team today. Use of Proceeds Ground up Construction: Conventional SBA 504 Preferred IHG Brands Sanat Patel Co-Founder and Chief Lending Officer sanat.patel@avanacompanies.com 213.700.7775 Lori Tirado Celniker Director–Capital Markets, IHG Hotels lori.tirado@ihg.com 716-228-4728 Steven Ellsworth SVP - Asset Management steven.ellsworth@avanacompanies.com 480.678.7447 Scan”

“AVANA's SBA 504 Loan Program Overview Pre-screen Checklist to Issue an LOI To streamline the issuance of a Letter of Intent (LOI), please provide the following: 1. Property Information: Collateral property address Property description 4. Business/Property Financial Information: 3 years of Tax Returns or historical financial statements (P&L and Balance Sheet) T-12 financial statements dated within 90 days (P&L and Balance Sheet) Debt schedule Current rent roll (if applicable) STR reports (for hotels) 2. Loan Request Summary and Requested Loan Terms (offering memorandum, broker’s summary, etc.): Requested Loan Amount Clearly describe the reason for the loan (e.g. expansion, refinance, acquisition) Please go beyond general terms such as "to buy a building” 5. Personal Information (for each guarantor): Current and complete PFS including Schedule of Real Estate Debt schedule Resume/Bio 3 years of Personal Tax Returns 3. Ownership and Guarantor Information: List all individuals with 20% or more ownership in the borrowing entity and all proposed loan guarantors, including their percentage ownership. 6. Re finance information (if applicable): Motivation for refinance Loan balance and loan status with current lender Prepayment penalty info Cost basis of property (cost + improvements) Property purchase date If there is cash out, what will it be used for? 7. If Property Improvements are involved: Description and budget for any planned improvements Collateral Requirements SBA 504 Solutions Backed by Deep Lending Expertise Scan Christyna Lane Vice President, Business Development christyna.lane@avanacompanies.com 310.601.0880 1st Mortgage (Lender) Assignment of Rents 2nd Mortgage via SBA debenture Hazard Insurance Partner with AVANA to secure long-term, fixed-rate, high LTV (up to 90%) SBA 504 financing backed by our access to capital. Ward Hickey Senior Vice President, Business Development ward.hickey@avanacompanies.com 602.903.6763 Sanat Patel Co-Founder and Chief Lending Officer sanat.patel@avanacompanies.com 213.700.7775”

“PIP coordination on IHG-flagged hotel acquisitions — AVANA’s familiarity with IHG PIP standards (Holiday Inn Express, Holiday Inn, Candlewood Suites, Staybridge Suites, Avid Hotels) reduces underwriting friction on IHG hotel bridge acquisitions”

“The hard money industry includes reputable operators alongside predatory actors. Watch for these warning signs: Upfront fees before loan commitment: Legitimate lenders do not require large non-refundable deposits before issuing a term sheet. No physical office or verifiable track record: If you cannot confirm the lender’s operating history and licensing, proceed with caution. Vague or shifting terms: If rates, fees, or conditions change between the term sheet and closing, the lender may be engaging in bait-and-switch practices. Pressure to skip due diligence: Any lender discouraging you from reviewing documents with your attorney is a red flag. Unusually high fees with no justification: Origination fees above 5% or unexplained “junk fees” at closing warrant scrutiny.”

“Some hard money lenders impose prepayment penalties or minimum interest guarantees that require borrowers to pay a specified number of months’ interest regardless of when the loan is repaid. Others charge exit fees at payoff. These terms vary significantly between lenders. Before signing, clarify whether a prepayment penalty applies, how it is calculated, and whether it decreases over time. A lender with a lower rate but a steep prepayment penalty may not be the best choice if your exit strategy involves a quick refinance.”

“The property itself is the primary qualification factor for hard money commercial real estate loans. Lenders evaluate: Current market value: Supported by a recent appraisal or broker’s price opinion Property condition: Structural integrity, environmental status, and deferred maintenance Location: Market fundamentals including population growth, employment trends, and comparable sales Income potential: Current rent roll, occupancy rates, and projected income after improvements Zoning and entitlements: Proper zoning for intended use, with necessary permits obtainable Properties in strong markets with clear value-add potential attract the most competitive terms. Properties with environmental issues, title problems, or locations in declining markets may face higher rates or outright decline. Market data from CBRE’s U.S. Real Estate Market Outlook can help borrowers identify which metros and property types currently attract the strongest lender interest.”

“Hotel bridge runs 50–150 bps above multifamily bridge baseline. Current rates (May 2026): Lender Category Hotel Bridge Rate AVANA-Oaktree institutional 8.5–10.0% Bank hospitality bridge 9.0–10.5% Private debt fund 10.0–12.0% Hard money hotel bridge 11.0–14.0%”

“Tell us about your project: size, location, scope, budget. We’ll propose a loan structure tailored to you. Apply For a Loan Schedule a call Get in touch with us ↗ +1 877-850-5130 16150 N Arrowhead Fountains Center Dr., Suite 243, Peoria, AZ 85382 Loan Programs By Product Type SBA 504 Loans Bridge Loans Construction Loans Conventional Term Loans By Property Type Hospitality Industrial Manufacturing Medical Office Mixed-Use Owner-Occupied Multi-Family Restaurant Retail Self-Storage Warehouse By Purpose Acquisition Construction Refinance Who We Work With Borrowers Brokers Investors Indian Hoteliers Eligibility Guidelines Resources Success Stories News & Events Company About Us Team Partnerships Social Impact Avana Capital In The Community © 2026 Avana Capital Terms & Conditions Privacy Policy Disclosures”

“We review initial documents and confirm loan structure and key terms. If the deal meets criteria, we issue a Letter of Intent with proposed terms Step 3”

“Review the draw process for rehab and construction. If your project involves renovation or construction, the lender’s draw process (how they disburse funds for completed work) directly impacts your project timeline. Slow inspections or bureaucratic draw approvals can stall construction and increase carrying costs.”

“Transparency about risk is fundamental to sound financial decision-making. Hard money loans offer clear advantages, but they carry trade-offs that borrowers must understand before committing.”

“For owner-occupied CRE only. The SBA 504 path from bridge into permanent. – 50/40/10 stack at 10% borrower equity – 25-year fixed CDC piece at ~5.75% (May 2026) – Blended rate at ~6.44% (May 2026) – Application to close: 90–150 days Best fit: owner-occupied properties acquired via bridge for renovation, then stabilized + refi’d into SBA 504 with the business as the long-term operator.”

“Long-term financing with up to 90% LTV designed to help business owners acquire, expand, or refinance commercial real estate Explore SBA 504 Program”

“Hard money loans mature in 6 to 36 months. If the borrower cannot refinance or sell the property before maturity, they face extension fees, default interest rates, or foreclosure. This refinance risk is particularly acute when: Renovation takes longer than projected Market conditions deteriorate, reducing the property’s value Interest rates rise, making permanent financing more expensive than anticipated Occupancy stabilization is slower than the business plan assumed Mitigate this risk by building realistic timelines with contingency buffers, maintaining reserve funds, and negotiating extension options at loan origination.”

“Sizing equity at 25% instead of 30–35%. Hotel bridge typical equity is 30–35% (65–70% LTC) vs. 25% multifamily bridge. Sponsors who size at multifamily levels land short.”

“Hotel bridge underwriting weights sponsor operating experience heavily. First-time hotel operators face materially higher rates + lower LTC; experienced hospitality operators (3+ prior hotel acquisitions + currently operating properties) qualify for institutional bridge at the best terms.”

“Stabilization successful: property value up from $8.75M acquisition to $11M (25% appreciation) Bridge fully refinanced into permanent non-recourse debt $1.54M cash-out to sponsor (vs. $0 equity recovered if the perm refi hadn’t been planned) Long-term debt at 5.85% fixed for 10 years vs. bridge floating at ~8.75% Annual debt service: $584K vs. bridge debt service of ~$570K (essentially flat, but the perm loan is $8.25M vs. bridge $6.56M — sponsor extracted equity at the refi) This is the structural reason bridge financing works for value-add CRE: the bridge funds the renovation period, the perm refi captures the appreciated equity + locks in long-term debt.”

“Starting perm refi process too late. Sponsors who start at month 21 of a 24-month bridge face extension fees + execution pressure. Start 6+ months before bridge maturity.”

“Strong commercial real estate collateral with sufficient equity.”

“AVANA Capital is a direct national CRE lender with 23+ years of experience, $1.7B+ in closed loans, and lending coverage across all 50 states. AVANA’s hospitality lending depth has two complementary anchors:”