Underwriting guidelines have dramatically changed, restricting and eliminating what we used to fund.

Although commercial financing does tend to place an emphasis on the economics of the property (cash flow, ability to debt service, etc.), borrowers are part of the qualification process (up to 25% weight of the final decision is based upon the borrower's creditworthiness).

They typically charge some fees for each transaction, as well as an annual fee.Any debt must be non-recourse.

They are going to give you the usual song and dance of they cant talk to you because it is in collections, tell them, “your debt is with them and that you don’t want your personal information sold, bartered, networked, or outsource to anyone”.

You can take an apartment building with problems say 40% occupancy and deferred maintenance and bad tenant mix and management problems and use commercial hard money.You will have to figure in the high debt service while turning around.Once stabilized you will refinance out at the new value up to a certain LTV.Take the money and do it again.The larger the project the more the potential ARV spread after stabilized but the more risk.The larger projects take more time to turn around so the churn rate on the money is slower.What happens and I have seen this is people run out of money and the property is taking longer to stabilize than thought.Then you have some money left but not enough to take down a property yourself until you unload this other deal you bought or refi.You then start partnering with different people on different projects which can lead to a mess.You don't just want to grow out of impatience or doing more deals and then get involved with the wrong people or overt extend yourself.You want smart,well thought out,controlled portfolio growth that is highly calculated.

The only ambiguity is pre-tax or after-tax.Cash flow means after all expenses and after all debt service.

The deal has to positively cash flow after debt service, taxes, insurance and some escrow.I have found that there are several properties in my area that fit this criteria but it takes much more work to find them.

All of these people might have plenty of money to service the debt but can't get a mortgage.

Title deed related restrictions won't/don't apply to debt encumbrance.

So, lets say I was able to locate a a decent retail or apartment with some value add play and I was to use my private lender to fund the deal; would I be able to refinance with a local bank as long as the income from the property was able to support the debt?