Comments on: Financing the Investment Project: Leaving Nothing To Chance http://www.biggerpockets.com/renewsblog/2008/05/27/financing-the-investment-project-leaving-nothing-to-chance/ Learn, Network, Invest Tue, 24 Nov 2009 06:18:45 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: MoneyMan http://www.biggerpockets.com/renewsblog/2008/05/27/financing-the-investment-project-leaving-nothing-to-chance/comment-page-1/#comment-57274 MoneyMan Sat, 07 Jun 2008 20:48:22 +0000 http://www.biggerpockets.com/renewsblog/2008/05/27/financing-the-investment-project-leaving-nothing-to-chance/#comment-57274 Your best way of obtaining financing is by putting some of your own money into the deal! Its amazing to see the number of people trying to borrow 100% with nothing down and no where withall! Your best way of obtaining financing is by putting some of your own money into the deal! Its amazing to see the number of people trying to borrow 100% with nothing down and no where withall!

]]> By: Glenn Fydenkevez http://www.biggerpockets.com/renewsblog/2008/05/27/financing-the-investment-project-leaving-nothing-to-chance/comment-page-1/#comment-57211 Glenn Fydenkevez Wed, 04 Jun 2008 17:46:48 +0000 http://www.biggerpockets.com/renewsblog/2008/05/27/financing-the-investment-project-leaving-nothing-to-chance/#comment-57211 Securing a commercial mortgage approval is key to any project. Without financing your deal is just a dream. A professional loan agent, broker or other intermediary can really help get a deal done. They speak the language of the lenders and know who’s funding loans and who’s not. MasterPlan Capital LLC – Commercial Real Estate Investment Bankers http://www.masterplancapital.com/ Commercial Mortgage Lending (from $1MM) Equity Financing (from $10MM) Asset Management Securing a commercial mortgage approval is key to any project. Without financing your deal is just a dream. A professional loan agent, broker or other intermediary can really help get a deal done. They speak the language of the lenders and know who’s funding loans and who’s not.

MasterPlan Capital LLC – Commercial Real Estate Investment Bankers
http://www.masterplancapital.com/
Commercial Mortgage Lending (from $1MM)
Equity Financing (from $10MM)
Asset Management

]]> By: Mike Farmer http://www.biggerpockets.com/renewsblog/2008/05/27/financing-the-investment-project-leaving-nothing-to-chance/comment-page-1/#comment-57102 Mike Farmer Wed, 28 May 2008 21:42:18 +0000 http://www.biggerpockets.com/renewsblog/2008/05/27/financing-the-investment-project-leaving-nothing-to-chance/#comment-57102 Thanks, it's good to hear directly from a lender. Thanks, it’s good to hear directly from a lender.

]]> By: Mortgage Sarasota http://www.biggerpockets.com/renewsblog/2008/05/27/financing-the-investment-project-leaving-nothing-to-chance/comment-page-1/#comment-57092 Mortgage Sarasota Wed, 28 May 2008 17:42:56 +0000 http://www.biggerpockets.com/renewsblog/2008/05/27/financing-the-investment-project-leaving-nothing-to-chance/#comment-57092 We are a private lender in Sarasota Florida and have done a few hundred million in loans over the last 18 years. But I can tell you that the underwriting has changed quite a bit in recent years. In the glory days before this housing crisis we would write loans and had some comfort knowing that even if the borrower makes a mistake the market appreciation would most likely bail them out. And for the most part that was the case. But now more than ever the "exit strategy" is a crucial part of the underwriting for us. Basically we have to ask ourselves... "How are we going to get out?". And a sale of the property is no longer a good enogh exit strategy. Even at a very low loan to value, we still have a lot to consider when writing a loan. And 80% of all the loans we wrote in 2007 have gone sideways and we have foreclosed, or taken deeds in lieu on them. And all of those borrowers look GREAT on paper. Its a challenging time for lenders. So the only advice I can give is... make sure you put yourself in the lenders shoes and ask yourself if you would do the loan if you were the lender. And then be absolutely sure you have a legit exit strategy if you are looking to refinance, or sell. We are a private lender in Sarasota Florida and have done a few hundred million in loans over the last 18 years. But I can tell you that the underwriting has changed quite a bit in recent years. In the glory days before this housing crisis we would write loans and had some comfort knowing that even if the borrower makes a mistake the market appreciation would most likely bail them out. And for the most part that was the case.

But now more than ever the “exit strategy” is a crucial part of the underwriting for us. Basically we have to ask ourselves… “How are we going to get out?”. And a sale of the property is no longer a good enogh exit strategy. Even at a very low loan to value, we still have a lot to consider when writing a loan. And 80% of all the loans we wrote in 2007 have gone sideways and we have foreclosed, or taken deeds in lieu on them. And all of those borrowers look GREAT on paper.

Its a challenging time for lenders. So the only advice I can give is… make sure you put yourself in the lenders shoes and ask yourself if you would do the loan if you were the lender. And then be absolutely sure you have a legit exit strategy if you are looking to refinance, or sell.

]]> By: Mike Farmer http://www.biggerpockets.com/renewsblog/2008/05/27/financing-the-investment-project-leaving-nothing-to-chance/comment-page-1/#comment-57074 Mike Farmer Tue, 27 May 2008 22:07:29 +0000 http://www.biggerpockets.com/renewsblog/2008/05/27/financing-the-investment-project-leaving-nothing-to-chance/#comment-57074 Thanks Mark. A compelling presentation based on real numbers goes a long way. Thanks Mark. A compelling presentation based on real numbers goes a long way.

]]> By: Mark McGlothlin http://www.biggerpockets.com/renewsblog/2008/05/27/financing-the-investment-project-leaving-nothing-to-chance/comment-page-1/#comment-57071 Mark McGlothlin Tue, 27 May 2008 17:15:25 +0000 http://www.biggerpockets.com/renewsblog/2008/05/27/financing-the-investment-project-leaving-nothing-to-chance/#comment-57071 Mike- great opening line to this post - "The importance of financing is so great it pays to leave nothing to chance and assumption." We've had a couple of experiences of late that exemplify how stringent lenders are being, and the importance of a great package of information to provide your lender. We've recently helped two multifamily buyers complete financing, both were mid sized complexes in strong secondary markets. The lenders had declined both, stating concerns over the viabliity of the smaller markets. We reviewed with each buyer their packages of information which were well documented, but they needed even more data justify their markets, which we were able to help them with. Lenders do want to say yes - good projects in good markets will get funded. Mike- great opening line to this post – “The importance of financing is so great it pays to leave nothing to chance and assumption.”

We’ve had a couple of experiences of late that exemplify how stringent lenders are being, and the importance of a great package of information to provide your lender. We’ve recently helped two multifamily buyers complete financing, both were mid sized complexes in strong secondary markets. The lenders had declined both, stating concerns over the viabliity of the smaller markets. We reviewed with each buyer their packages of information which were well documented, but they needed even more data justify their markets, which we were able to help them with.

Lenders do want to say yes – good projects in good markets will get funded.

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