One major mistake that so many potential borrowers make is not professionally preparing their paperwork for the loan application process. Waiting until the last minute or throwing the documents together in an unorganized manner is a surefire way to undermine your chances of obtaining commercial real estate financing.
So how do you properly prepare you documents for examination? The first thing to do is to approach this with an attitude of absolute professionalism. Approach it as if you were making a huge sales to pitch to a business partner or potential client. Because that is basically exactly what you are doing. If all goes well, your lender will be wrapped up in your business for millions of dollars. That is most definitely deserving of a professional approach.
As you put together your paperwork for your commercial real estate financing, keep in mind that you are trying to convince lenders to invest in you and your property. So think like they would think and answer the questions that you would want to know ahead of time. Give them every reason to jump at the chance to loan you the money for your commercial property. And prepare your paperwork accordingly so that they have no choice but to jump at the opportunity that you are putting before them. It should visually convey that you take pride in your work and that you will treat this loan with equal professionalism.
What exactly should you include in your documents? For starters, include any piece of information about the commercial property that you can think of. This should include photos and some sort of executive summary about breaking down how the loan will be applied. Also include any income statements that you can expect from the property. You should also include information about you, the borrower. Personal finances, other owned properties and taxes should definitely be included. It also might be a good idea to include some sort of resume or equivalent document so that the lender can get an understand of who they will be going into business with.
Other than sit and wait, there is not a whole lot that you can do to affect their decision, at this point. Once the lender has decided that they would like to work with you and provide commercial real estate financing, make sure that they provide you with an offer in writing. Receiving an offer over the phone is meaningless. It should come in the form of a letter of interest. Once you have that in hand, you can begin to move forward.
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.