| You're searching for commercial real estate financing - | | | | about the financial standing of that entity, as well |
| what's the best approach to take in contacting | | | | 7) If possible, try to find out what properties are |
| lenders? | | | | adjacent to the subject property. This can be helpful in |
| Commercial lending is far less standardized than | | | | identifying possible environmental concerns. (Relating to |
| getting home financing, and has a whole language of | | | | chemical seepage from adjacent properties.) |
| its own. You and the commercial loan officer will | | | | With this information, the lender can indicate if the loan |
| generally discuss the tenancy and income or the | | | | request fits their lending criteria, and if so, what other |
| property, if it is rented, and the property type, before | | | | information is required. In many cases, the loan officer |
| getting into the borrower's qualifications. The loan | | | | will prefer to drive by the property before any more |
| amount and terms you'll obtain will vary greatly, | | | | information is gathered, and sometimes before loan |
| depending on different property characteristics. | | | | terms are even quoted. |
| When you contact the commercial lender, try to have | | | | Want to get the commercial loan officer on your side |
| as much of the following information as possible | | | | right from the start? Of course! |
| available: | | | | Try this: Take some digital photographs of the front, |
| 1) The sales price or estimated value of the property | | | | rear (if possible) and sides of the building. Then, take a |
| 2) The loan amount desired | | | | photo of what's on either side of, across the street |
| 3) The property type, including approximate age of the | | | | from, and in back of the building. Type up a brief two |
| improvements, square footage, lot size, and in the case | | | | page narrative description of the property and your |
| of apartment buildings, the number, size, and types of | | | | loan request. This gives the loan officer a simple |
| apartments, who pays utilities, and what the parking | | | | description of the property, the borrowers situation, and |
| arrangements are. In the case of commercial | | | | the need for financing. You can even provide rent rolls |
| properties, the tenancy, and when leases expire. If the | | | | on apartments and information about leases and |
| building is occupied by, or being purchased by an | | | | expiration dates on commercial buildings. |
| "owner user" type of business/borrower, try to find out | | | | E-mail this information to the lender, requesting a |
| what the same space would rent for on the open | | | | response. Providing this informationsaves you and the |
| market. | | | | lender a lot of time. Not only will the lender see that |
| 4) The income, and what expenses the owner pays. | | | | you know what you're doing, you'll get a faster, more |
| 5) The borrower's credit, overall financial situation, and | | | | accurate response to your request. |
| other properties owned. | | | | As you work repeatedly with the same lenders, you'll |
| Lenders are interested in how much other property | | | | learn what type of information they require to consider |
| your borrower owns, and what, if any, experience your | | | | a loan request. Building relationships with your |
| borrower has in managing the type of property being | | | | commercial lenders will be a great help in closing |
| purchased. | | | | commercial loans. You'll find that many commercial |
| 6) If the property is owned by an LLC, Corporation, or | | | | loan officers have a significant say in the final approval |
| other entity, be ready toprovide basic information | | | | of your loan request. |