|
Unlike residential loans, cash flow of the investment
is what drives all rates and terms for any investment
property loan.
If the profit and loss statement, and the interim financial
statement do not demonstrate a positive cash flow
after servicing the new debt, no conventional lender will
lend you money for the project. Commercial funding will
not be available if there is no cash
flow
AND YOU SHOULD WALK AWAY AND FIND ANOTHER DEAL.
All Investment Property Loans are made to be repaid.
The average banker won't tell you that but that is the
underlined assumption when any lender makes you a loan
they want your commercial real estate loan repaid
This might be an obvious point but it is so easily overlooked
in the excitement of the transaction.
If a lender is telling you that they won't finance your
project they are doing you a service.
They are telling you directly that you will lose money,
but on the other hand the lender does make you a loan
then you know that the deal is at least cash flowing as
it is presented today.
Commercial loans
are geared specifically to each type of real estate investment.
For a No-obligation Professional
Financial Analysis of an Investment you may be considering
contact us.
|
