Borrowers come in all sizes, shapes and levels of expertise:
It's our experience that borrowers that take the time to educate themselves about commercial lending will be rewarded with the best deals possible in their circumstances.
We know that our borrowers are extremely busy people having to operate their businesses efficiently on a day-to-day basis. Therefore many may not have time to keep up to the ever-changing nuances of the commercial funding world.
We also assume that any commercial borrower with a goal, and need, for financing wants to negotiate the best deal possible. So when your time comes to test the market for funding, we pride ourselves on providing the pre-borrowing education that will make your task easier, faster and smoother.
At EXCEL Commercial Capital, we provide a free of charge on going stream of information that will assist you, our potential borrower, to become as knowledgeable as possible about commercial lending prior to seeking funding, — whether you use our services or not!
Commercial Borrowers Must Be Prepared & Provide Open Communication
Experienced borrowers already know this, however if you are an occasional, or new, commercial borrower, the following will save you much valuable time and frustration while vastly improving your chances for a successful commercial funding.
In this example, we will assume you need a commercial mortgage, whether for a purchase, a rate and term refinance or a cash out refinance, please be prepared as follows:
· Obtain a Tri-Merge Credit Report or we will pull one for you.
· Prepare an up to date Personal Financial Statement. Be honest; include the good, bad and the ugly, if applicable.
· Have copies of the last 3 years Corporate and Personal Tax Returns available.
· Have a YTD P & L and Balance Sheet at the ready, either yours or the Seller's, if purchasing.
· Have yours, or the Seller's, Rent Roll and property expenses up to date and accurate.
· Write a two to three paragraph Executive Summary and have it ready to communicate to me what are your goals, needs and expectations.
Don't ask for, or expect, an interest rate "Quote" in the first conversation! Rates depend on the risk in the deal and we won't know the risk until we have seen your information about the property, its cash flow and your personal financial status.
Every commercial deal is as unique as the people that operate the underlying business. Please understand when you are dealing with a commercial lender, they can normally ascertain whether your plan is a viable deal very quickly, but we can get you an "Loan Offer" in writing if you can clearly communicate what it is you are attempting to accomplish and provide the necessary detail to pre underwrite your proposed loan.
It is to your advantage to use your commercial lender wisely as a partner and knowledge base. Having confidence and trust in your lender will save you valuable time verses just hoping to do a deal that may not be doable due to market conditions or the uniqueness of the property, or both.
If you are prepared, and you communicate openly, the chances are that we can do some preliminary underwriting on your loan request. We will find the proper funding source for your circumstances and in 24 to 48 hours get back to you with a written Term Sheet.
Your "Term Sheet" will contain all the pertinent information such as rate, term, monthly payment and terms and conditions for you to make an intelligent and informed decision of whether the Lender's offer meets your ROI needs and bottom line expectations.
By following this simple formula, you will put yourself in the driver's seat to get your deal done quickly and with the least frustration.
To be ill prepared is a disservice to your own business and to us whose only mission is to see you obtain the loan you desire.
Understand that the first preliminary underwriting may show weaknesses in your plan, or loan request, that will preclude us from obtaining a Term Sheet for you. By being prepared as outlined above, we can often make suggestions to improve your plan and/or package to so a loan commitment can become available.
It is far better to learn bad news from us and correct it first than to waste months shopping a loan that is fatally flawed from the beginning.
