Learn to Underwrite Commercial Mortgage Loans – Only $199
INCOME PROPERTY UNDERWRITING MANUAL Only 9
Right now Wall Street is buying more commercial mortgage-backed securities than at any time in history. As a result, there are loan agents out there today who are making over a half-million dollars a year brokering commercial loans to conduits. If you don’t know how to broker commercial deals, you are missing out on one of the biggest financial gold rushes of your lifetime.
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Five Reasons That Banks Reject Commercial Mortgages
This article highlights the five main reasons that banks decline commercial mortgage loan applications. The reasons provided below do not represent obscure issues, so it is likely that two or three of the reasons described will be important for typical commercial mortgage situations. The first two reasons (business plans and tax returns) will potentially impact all commercial borrowers. Many commercial loan officers will start their loan review process by stating some variation of “Can you show me your business plan?” and “We will need to see several years of tax returns”.
Many commercial projects are too unique for traditional commercial banks. In these situations (even if a commercial borrower has favorable tax returns and an adequate business plan), it is not unusual for commercial borrowers to be declined for a commercial mortgage loan by a traditional commercial lender. Commercial borrowers are likely to be confused when they are turned down and will be unsure as to why it happened and what to do next. For each of the five major reasons that a bank might decline a commercial real estate loan, a strategy is provided for converting the declined loan into an approved commercial mortgage.