Submitted by Naomi M on Sun, 06/01/2008 - 20:24.
Brokers: Be the Hero Your Clients are Counting On –
Stop wasting your precious time and pocket your broker fees much, much sooner. You can now stop the painfully frustrating “hit and miss” method of getting your commercial mortgage deals approved.
I’ve got a solution to help get your loan package placed on the top of the underwriter's stack of files and get your Conditional Approval Letter in a jiffy so you get paid faster. It's part of my LOAN PACKAGE AND PRE-UNDERWRITING SERVICE FOR BROKERS.
As you may already know, there are three critical elements involved in obtaining a loan approval I call the LOAN APPROVAL FORMULA...
Loan Submission Package - All loan requests start with submitting a loan package to the lender. This is your opportunity to put your "best foot forward" and present your project as favorably as possible to the lender. Critical documents include the Executive Summary, the Operating Statement and Rent Roll. If you mess up this first step, your loan goes to the bottom of the pile - and worse yet - in the "reject pile."
Meeting Lender Underwriting Guidelines - Banks and other lending sources have "cheat sheets" they use to underwrite or qualify loan requests. The underwriting criteria is different for each property type. So, even though you may have a complete and professional loan application package, if you don't know the ratios the underwriter uses to approve your loan, you'll still end up in the "reject pile."
The Right Funding Source - This is where your expertise and Rolodex come into play.
However, if the first two elements are a bomb, the right lender will still reject the loan.
Let my team eliminate the frustrating "hit and miss" method of getting your loan approved. As you may have already summarized, without the specialized knowledge of the Loan Approval Formula, you are really at a disadvantage of getting your commercial mortgage request approved.
My Loan Submission Package Service for Brokers uses the Loan Approval Formula. This includes:
Here are the complete details on what you, as a Preferred Broker, will receive using the LOAN APPROVAL FORMULA:
Loan Application Package
A complete and professionally prepared loan application package is the critical first step to obtaining your loan approval.
Every loan request starts with submitting a loan application package to the bank. There are several important elements that make up your professional loan package. They include:
1. An Executive Summary: This is an essay about your loan request. This is your opportunity to "sell" the strengths of your project and yourself to the bank. Do this poorly, and you'll negatively impact the great first impression you're trying to make.
2. Property photos: The lender wants to see what the property looks like from the outside and inside. Adding a few key photos lets the lender quickly determine the quality of the property that will secure the loan.
3. Borrower information: This includes standard contact information plus the type of legal entity that will hold title.
4. Property information: This includes detailed information about the property and its features.
5. Operating statement: This is a critical statement because it provides detailed information on the annual income and operating expenses that determines the Net Operating Income of the property, also known as the NOI.
You will need to provide figures for at least 2 years plus a year-to-date. The NOI is a very important number to the lender. The Operating Statement must be completed as accurately as possible.
6. Rent roll: Whether the property is an investment or an owner-occupied commercial property, the lender wants to review detailed information about the rental income including the terms of the leases and who your tenants are.
Owner Occupied Property
If your borrower owner-occupies any space of the property, you will need to treat the space like a tenant-occupied space, ie, you need to enter the market rent of the space and the lease terms such as what utilities and other operating expenses a tenant would pay.
New Construction Projects
Use a 12 month pro forma for the operating statement and rent roll.
The Loan Application Package created will be a pdf document that will include what lenders need to analyze your loan request:
Property operating performance
Rent roll and leasing analysis
Property characteristics and conditions
Market attributes
Unlike the uniform residential application, the Loan Application Package will provide you with a report that emulates the Investor Reporting Package (IRP) that was created by the Commercial Mortgage Securities Association.
The IRP reports the operating performance of the commercial property, which is the primary criteria for which a commercial mortgage loan is based on and is the primary criteria a lender needs to review to produce a quote and a full term sheet.
Underwriting Analysis Package
You may or may not know that lenders use underwriting "cheat sheets."
Yes, the banks use "little-known" ratios to underwrite or approve your loan request. The ratios vary depending on risk factors and property type: multifamily, office, retail, industrial, self storage, hospitality, healthcare, mobile home park, mixed use, and restaurant.
The qualifying ratios on the bank's "cheat sheets" include such items as:
Loan-To-Value compared to the proposed loan amount. This ratio is affected by the NOI, Capital Expenses and Capitalization Rate.
Debt Service Coverage Ratio compared to the proposed loan amount. This ratio is affected by the Net Cash Flow (NCF) and the Annual Debt Service.
Loan Terms: These include the fixed rate period, the amortization period, interest rate index, and interest rate spread.
Vacancy Reserves
Replacement Reserves
Management Fees
Capitalization Rate
Operating Expense Ratios
The Underwriting Analysis Package will present the salient issues of your deal in a comprehensive loan/underwriting package, using the uniform reporting format for commercial real estate.
In addition, the value of the property will automatically be estimated and supported using the Income Capitalization Approach. The Loan-To-Value and Debt Service Coverage Ratios will be calculated.
The combined strength of a complete and professional Loan Package integrated with the Underwriting Analysis will greatly enhance your odds of receiving high interest in your loan request from multiple funding sources.
How To Get Started Collecting Your Broker Fees Faster
You simply collect all the documents the lender requires. We have a standard checklist you can use and just add any additional documents.
The loan packaging fee ranges from $1,600 to $2,200, depending on the number of borrowers. More borrowers require more financial documents to be assembled.
Typically, the fee is due when the package is completed and ready to forward to you. We do not accept payment at close of escrow. The fee is still payable even if the loan does not close because we have done our work.
My team and I look forward to helping you make more money and fund your deals fast as a Preferred Broker using the Loan Packaging Service for Brokers.
Please contact me initially by email to get started and answer any questions.
Brokers
Brokers: Be the Hero Your Clients are Counting On –
Increase the Odds of Getting Your Loan Approved by 89% and Get a Conditional Approval Letter Faster Than You've Even Experienced Before!
Stop wasting your precious time and pocket your broker fees much, much sooner. You can now stop the painfully frustrating “hit and miss” method of getting your commercial mortgage deals approved.
I’ve got a solution to help get your loan package placed on the top of the underwriter's stack of files and get your Conditional Approval Letter in a jiffy so you get paid faster. It's part of my LOAN PACKAGE AND PRE-UNDERWRITING SERVICE FOR BROKERS.
As you may already know, there are three critical elements involved in obtaining a loan approval I call the LOAN APPROVAL FORMULA...
Loan Submission Package - All loan requests start with submitting a loan package to the lender. This is your opportunity to put your "best foot forward" and present your project as favorably as possible to the lender. Critical documents include the Executive Summary, the Operating Statement and Rent Roll. If you mess up this first step, your loan goes to the bottom of the pile - and worse yet - in the "reject pile."
Meeting Lender Underwriting Guidelines - Banks and other lending sources have "cheat sheets" they use to underwrite or qualify loan requests. The underwriting criteria is different for each property type. So, even though you may have a complete and professional loan application package, if you don't know the ratios the underwriter uses to approve your loan, you'll still end up in the "reject pile."
The Right Funding Source - This is where your expertise and Rolodex come into play.
However, if the first two elements are a bomb, the right lender will still reject the loan.
How To Eliminate the Hit and Miss Method To Get Your Loan Request Approved...and Quickly
Let my team eliminate the frustrating "hit and miss" method of getting your loan approved. As you may have already summarized, without the specialized knowledge of the Loan Approval Formula, you are really at a disadvantage of getting your commercial mortgage request approved.
My Loan Submission Package Service for Brokers uses the Loan Approval Formula. This includes:
- Creating a professional Loan Submission Package that will be used to submit your loan request to your lender.
- Creating a professional Underwriting Package that provides the lender with all the "cheat sheet" ratios they use already calculated specifically for your loan request. .
Here are the complete details on what you, as a Preferred Broker, will receive using the LOAN APPROVAL FORMULA:
Loan Application Package
A complete and professionally prepared loan application package is the critical first step to obtaining your loan approval.
Every loan request starts with submitting a loan application package to the bank. There are several important elements that make up your professional loan package. They include:
1. An Executive Summary: This is an essay about your loan request. This is your opportunity to "sell" the strengths of your project and yourself to the bank. Do this poorly, and you'll negatively impact the great first impression you're trying to make.
2. Property photos: The lender wants to see what the property looks like from the outside and inside. Adding a few key photos lets the lender quickly determine the quality of the property that will secure the loan.
3. Borrower information: This includes standard contact information plus the type of legal entity that will hold title.
4. Property information: This includes detailed information about the property and its features.
5. Operating statement: This is a critical statement because it provides detailed information on the annual income and operating expenses that determines the Net Operating Income of the property, also known as the NOI.
You will need to provide figures for at least 2 years plus a year-to-date. The NOI is a very important number to the lender. The Operating Statement must be completed as accurately as possible.
6. Rent roll: Whether the property is an investment or an owner-occupied commercial property, the lender wants to review detailed information about the rental income including the terms of the leases and who your tenants are.
Owner Occupied Property
If your borrower owner-occupies any space of the property, you will need to treat the space like a tenant-occupied space, ie, you need to enter the market rent of the space and the lease terms such as what utilities and other operating expenses a tenant would pay.
New Construction Projects
Use a 12 month pro forma for the operating statement and rent roll.
The Loan Application Package created will be a pdf document that will include what lenders need to analyze your loan request:
Property operating performance
Rent roll and leasing analysis
Property characteristics and conditions
Market attributes
Unlike the uniform residential application, the Loan Application Package will provide you with a report that emulates the Investor Reporting Package (IRP) that was created by the Commercial Mortgage Securities Association.
The IRP reports the operating performance of the commercial property, which is the primary criteria for which a commercial mortgage loan is based on and is the primary criteria a lender needs to review to produce a quote and a full term sheet.
Underwriting Analysis Package
You may or may not know that lenders use underwriting "cheat sheets."
Yes, the banks use "little-known" ratios to underwrite or approve your loan request. The ratios vary depending on risk factors and property type: multifamily, office, retail, industrial, self storage, hospitality, healthcare, mobile home park, mixed use, and restaurant.
The qualifying ratios on the bank's "cheat sheets" include such items as:
Loan-To-Value compared to the proposed loan amount. This ratio is affected by the NOI, Capital Expenses and Capitalization Rate.
Debt Service Coverage Ratio compared to the proposed loan amount. This ratio is affected by the Net Cash Flow (NCF) and the Annual Debt Service.
Loan Terms: These include the fixed rate period, the amortization period, interest rate index, and interest rate spread.
Vacancy Reserves
Replacement Reserves
Management Fees
Capitalization Rate
Operating Expense Ratios
The Underwriting Analysis Package will present the salient issues of your deal in a comprehensive loan/underwriting package, using the uniform reporting format for commercial real estate.
In addition, the value of the property will automatically be estimated and supported using the Income Capitalization Approach. The Loan-To-Value and Debt Service Coverage Ratios will be calculated.
The combined strength of a complete and professional Loan Package integrated with the Underwriting Analysis will greatly enhance your odds of receiving high interest in your loan request from multiple funding sources.
How To Get Started Collecting Your Broker Fees Faster
You simply collect all the documents the lender requires. We have a standard checklist you can use and just add any additional documents.
The loan packaging fee ranges from $1,600 to $2,200, depending on the number of borrowers. More borrowers require more financial documents to be assembled.
Typically, the fee is due when the package is completed and ready to forward to you. We do not accept payment at close of escrow. The fee is still payable even if the loan does not close because we have done our work.
My team and I look forward to helping you make more money and fund your deals fast as a Preferred Broker using the Loan Packaging Service for Brokers.
Please contact me initially by email to get started and answer any questions.
