Avatar's Blog

» Commerical Property Trends

Posted on 5/13/2005

Substantial increases in commercial property loan requests over the past months will make lenders happy, but make moeny more scarce. With plenty of loans to choose from, the best loans will be those with the least risk and lowest loan-to-value ratios. Packages with complete information, clear color photos, and clearly well thought out executive summaries will get funded. Those with weak loan packages containing information that is dribbled in piecemeal will have a rougher time.

Be prepared. Gather:

  • color photos of the property, inside, out and the neighborhood (3 or more of each)
  • P&Ls from the property or business that will make the monthly payments
  • Personal Financial Statement (get it from the forms page)
  • Prepare a well written executive summary. Use bullets and short, clear sentences. Organize your thoughts. Get your point across using facts, not emotions. Lending is a numbers process. Make sure your loan request makes sense for you and the lender before submitting your proposal.

 

 

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