Do you want better results from Lenders?

How to get better results from lenders.

Written by: Kevin P. Meehan

Whether you are just starting out or a seasoned investor, obtaining a commercial property loan is time-consuming and can be a daunting task. Many people often ask u if there are any insider tips for getting better rates, terms and even faster responses when dealing with the finance industry. The short answer is yes, hire a professional intermediary that deals in the business every day. If qualified, they will be able to not only guide you through the maze but he or she will make getting and closing the loan a lot less stressful.

I use the word “qualified” to emphasize that there are a lot of people and companies out there that have no credentials or background to be working on complex financial matters. Other warning signs also include individuals that just want an upfront fee with no intention (or ability) to even obtain what you seek.

Whether you use a qualified intermediary or try to go it alone, here are some useful tips that will certainly benefit your endeavors in the marketplace. First, make sure that your initial submission contains the basic needs to allow a proper evaluation. You should include: 1) executive summary of the property, 2) current and historic income and expenses, 3) detailed current rent rolls, and 4) borrower profile.

Surprisingly, many loans request get rejected or put aside not because the deal was bad. Rather, it may have taken too much effort for the loan officer to understand the deal or maybe the submission was incomplete or the loan request just did fit the current lending box of that lender.

If you want to everything to go smoothly and get the best terms, make sure that: a) the requested loan fits within the lenders guidelines, b) the borrower profile (background, net worth, and liquidity requirements) meets the lenders current preferences, c) everything is provided in a timely manner, and d) the lender has a high confidence that the deal will close either through a trusted existing relationship or through a trusted advisor.