IT IS NOT ABOUT YOU … IT IS ABOUT THE LENDER!

Most commercial real estate investors think the loan application is all about them — credit worthiness, college degree, property ownership experience, etc. This is the wrong mindset when applying for a loan. In reality the loan application is all about the lender — what they are looking for in a borrower. Here are a few questions you need to ask yourself when making your application for a commercial real estate loan:

1. Does my project meet the lenders loan criteria (type of property, Loan-to-Value Ratio, source of down payment, property grade (A, B, C, or D) relevant experience, geographic location, grade of property, area demographics, property value, debt coverage ratio, etc.)
2. Will my loan application and package attract the lender’s attention. Remember you are competing with hundreds of other applicants for loan approval. Properly packaging your loan will make or break it for you!
3. What is the lender’s sweet spot? Put another way, what does the lender prefer to lend on? Most lenders prefer certain niches or property types and grade of properties.
4. Will the property provide sufficient cash flow over the next five years to meet the Lender’s debt coverage ratio minimum?
5. Do I really have the expertise to manage the investment profitably? If not who can I partner with to compensate for my lack of expertise? Don’t be afraid to swallow a little pride here if you really want the investment to succeed.

Asking yourself these questions and being honest with the response will greatly improve your chance of successfully financing your next commercial real estate investment.

Commercial Real Estate Finance Consultants
Spectracom Holdings
Jim McCune
877-660-2895
www.SpectracomHoldings.com