Money, taxes and insurance · 10 guides
Commercial Financial Broker: problems and fixes, explained by Brian
Brian Gramlich is the only commercial financial broker member of BNI Preston Center. These guides are written for a Dallas–Fort Worth reader who has the problem right now: what is happening, what to check, when to call, and what it costs.
- The loan package lenders want for a commercial property, and how to build it yourself Most of a commercial loan package is documents you already have or can gather in a week or two. Here is the full list, what lenders do with each piece, and how to present your numbers so they hold up. The short list every commercial lender will ask forProperty documents: the numbers your loan is sized fromSponsor documents: showing you can carry the dealEntity and authority documents that slow closings when missing
- The bank said no to your commercial loan: what the decline means and where to go next A commercial loan decline is one lender's answer about one version of your deal. Find out the real reason, fix what can be fixed, and take the deal to lenders whose criteria actually fit it. What one bank's no actually tells youThe reasons behind most commercial loan declinesWhy a deal that worked two years ago can fail todayAsk these questions before you leave the bank's office
- How much cash it really takes to buy an apartment building in Texas Most Texas apartment purchases take 20 to 35 percent down, depending on the loan type and the condition of the building. Here is how the number gets set, and the other cash you need at closing. The short answer: 20 to 35 percent, and the building decides where you landFour units and five units are financed in different worldsWhat each loan type usually asks you to bringThe same building, two different checks
- How long a commercial real estate loan takes to close, and what fills the weeks Most conventional commercial real estate loans take 60 to 90 days from application to funding. Here is what happens in those weeks, where deals stall and what you can do to keep yours on schedule. Plan on 60 to 90 days for a conventional commercial loanBefore the term sheet: packaging and the lender searchTerm sheet to commitment: the third-party reportsThe last stretch: title, insurance and loan documents
- Hard money on commercial property: the myths, the real costs and when it is worth it Hard money is expensive, short and unforgiving, and sometimes it is exactly the right tool. Here is what it really costs, the myths that get investors in trouble and how to tell if your deal justifies it. Not a bad idea, but an expensive one that needs a way outMyth: hard money is only for borrowers with bad creditMyth: the interest rate is the costMyth: hard money will fund almost the whole purchase
- Commercial mortgage broker or your own bank: who should place your property loan? Your bank gives you one lender's answer. A good commercial mortgage broker gives you the market's answer and manages the deal to closing. Here is how to tell which one your loan needs. Start with your bank, but do not stop thereWhat a bank can do for you, and where its limits areWhat an independent financing advisor actually doesWhen I would tell you to stay with your bank
- Can you still finance a Dallas office building? Yes, but the submarket decides how much Office buildings in Dallas can still be financed. The question is whether the loan covers your payoff, and that depends on your submarket, your rent roll and which kind of lender you approach. The short answer: yes, but maybe not the amount you needOne metro, very different office marketsWhy lenders remain cautious about officeThree tests decide the loan, and the smallest one wins
- Agency, bank or bridge: choosing the right loan for a Dallas apartment building Agency loans usually win on term, leverage and non-recourse for stabilized apartments. Banks win on flexibility and shorter plans. Bridge loans win only when there is a dated path to higher income. The quick answer for a stabilized buildingHow each of the three loans is put togetherOne property, three very different loan amountsWhat agency debt gives you, and what it asks in return
- After the commercial loan closes: reporting, covenants and setting up the next refinance Closing is the start of a multi-year relationship with your lender. Here is what most loan agreements ask of you after funding, how to stay in compliance and how to keep the next refinance easy. What the lender still wants once the money is wiredThe reporting calendar most loans createCovenants are tests you keep takingInsurance and escrows: the items that lapse quietly
- Your apartment loan matures in 18 months and rates have doubled: how a refinance gets done Thousands of North Texas apartment loans written at low rates are coming due into a very different market. Here is how to size the gap, when to start, what lenders will want from you and how a financing advisor turns a hard refinance into a closed one. The maturity date on your loan statement is closer than it looksWhy a performing property can still fail to refinanceRun these numbers yourself before you call anyoneEighteen months out is when to start, not six