The 5 Waves of the Commercial Lender Experience (for Investors):
1️⃣ Initial Overview: you discover a lender and get the initial terms of their loan programs.
2️⃣ Submit Application and Docs: use the lender’s application, Track Record form, and submit other info they ask for (usually copy of drivers license, social security number, [if for a business: company EIN letter, company operating agreements], tax returns, etc)
3️⃣ Follow Up to Keep Up: commercial lenders will ask for a lot more, and terms may change along the way. Follow up on EVERYTHING and be quick to respond. A 1-day delay on your part could mean a much greater delay for the loan! Submit payment for the appraisal, answer random questions, you may be asked for Closing Statements and company documents for properties listed on your Track Record, and submit proofs of leases and payments on rentals, if you’re getting a loan for a rental
4️⃣ Finalize and Review: Just when you think you got everything in, there will likely be more. Keep your chin up and get it done! Carefully review Everything!
5️⃣ Close and Organize!! When you get the preliminary closing docs, check every line and compare with your expectation. Be sure any errors are corrected on the Closing Statement, if needed. After closing, put the SIGNED Closing Statement in a digital folder where you keep all closing documents. You’ll need them later for your next loan! Also add this to your Track Record list.
#realestateinvesting #multifamilyinvesting
