Help---Loan Officer

[Clara Mayberry]

Hello Everyone,

I have a quick question, please help

How do loan officers help when it comes to investing?

[Albert Bui]

A good loan officer who also has a good amount of financial intelligence can help with being able to review and analyze the relevance to a loan scenario between the 3 financial statements:  1)P&L stmt., 2) Cashflow stmt., 3) and balance sheet in order to plan your finances to banking guidelines so that you not only obtain financing but you do so while minimizing the burden of unnecessary taxes, increase cash flow, manage debt expense/rates, and increase equity growth.

Most loan officers will struggle with just getting you a loan as they are used to W2/salary/hourly borrowers with very simple scenarios.

The hard part about working with self employed/ business owners/ investors as borrowers is that as a LO you'll have to sometimes comb through multiple partnership, corporate, personal returns, amortization schedules, and other tax schedules to determine, analyze, extract, and find additional income to make a scenario work and it not only takes financial analysis skill but also knowledge of the guidelines and most crucially how the LO can sell the "story," whether it be income, occupancy, asset seasoning, or other to the underwriter to ultimately get you an Approval with the least brain damage as possible.

Beyond the analysis and loan qualification skill they will help present you with different scenarios to better your investment return, how to obtain your capital again after an acquisition, strategies, timelines, and generally figuring out ways to make your untouchable equity turn to a lump sum of cash (cash out), or how to convert a jump sum of cash into streams of income (vice versa). A good lender will also understand ROI, Cap rates, IRR, gross rent multipliers, and other financial ratios that will help give you different angles of attack.

Those are my 2 cents on the topic. I hope that helps.