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Underwriting A Deal - Cash And Why You Need It
There are many ways to underwrite the funding for a potential deal and over the last few videos we covered several of the big 'C' indicators. One of the most straight forward and easiest is CASH. Cash is one type of value that allows the underwriter to reduce risk and still make a deal work. Sometimes the other major C's aren't in line perfectly so the borrower might be required to bring more cash to closing in order to offset the risk. The deal can still be done and both sides are in good shape or comfortable with the scenario. There should always be a certain amount of liquidity on the borrowers side to make sure they can sustain a bump in the project or if they need to offset something that brings on more risk to the lender in the deal.
Ian Walsh
215.839.3271
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