While the media is screaming the sky is falling all around the mortgage industry, the truth be told, it is not as bad as it sounds. There is still a lot of money out there that needs to be placed with worthy projects.
The only thing that has really changed in the commercial mortgage industry is that underwriting criteria has become tighter, making less than “good” projects more difficult to finance. We just completed a conventional loan with a regional bank for $2.3 million in just 38 days from start to finish, including the time to conduct the appraisal and environmental report.
While it was not the easiest project to finance it was financed based on the strength of the project, excellent cash flow, and credit worthiness of the borrower. But, the thing that aided the most in getting this difficult project funded was how it was packaged for the lender. The lender admitted that they would not have considered the project if it had not been packaged to the extent that it was for them. The package really sold them on the feasibility of the borrower’s ability to service the debt and how the project met all of the lender’s underwriting criteria.
Remember, don’t just throw documents at the lender and hope they will finance your project. Prepare a package that will sell them on the project. Proper presentation is essential in a tight mortgage market.
So, are we in a robust mortgage market? No. But, there is still a lot of money available from aggressive lenders at attract terms, if you present your project properly showing how your project meets their underwriting criteria.
For more information on commercial loans please visit our website at: www.SpectracomFinancial.com or call us at 877-660-2895. Post #BH12B12.
