Package it up - Posted by Judah hardmoney Hoover
Posted by Judah hardmoney Hoover on May 12, 2006 at 16:25:56:
The first thing you need to do is find a good mortgage broker. You sound like you might be a mortgage broker? are you? How are you involved? You can get a fee agreement signed to collect a fee for brokering the loan if you are licensed to do that. In most states it is very bad to practice law or medicine with out a license? the same holds true for brokering funds, it happens all the time but be careful.
The LTV is good on this deal; the credit being ?iffy or so-so? is not as much of a concern as what is the business cash flow like. In commercial lending the RE is more important then the borrower. The borrower is still considered but it is secondary to the RE/Business being leaned. It is the opposite of residential RE? a good borrower can get 100% or 125% funding because the borrower is what the bank looks at not the house.
Do what Ed and others preach put together a nice package?
2 years tax returns business and personal
YTD profit and loss
Current personal financial statement
Recent appraisal, (if older then 2 years restate value but understand you will need a new one before close)
Borrower credit report
Borrower financial statements (2 months checking, saving, and any liquid assets)
Schedule of RE owned
Global cash flow report
Subject property cash flow
Put a nice (read short and to the point) letter on the top
? and take it to some local banks. If one bank says you are missing something get it and include it in the package to all other banks. Find out what the bad news is and tell the bank right away, don?t hide anything. ?Mr. banker XYZ is the issue with this deal but hear is what I think more then compensates for it? the bank knows ?something? is ?wrong? or you would have funding already. Show them what is wrong don?t make them go look or they may find 3 more things.
Your LTV is strong you will find funding.
If you cant use a local bank call Silverhill or Interbay
Sorry so long