Archive

Archive for May, 2011

The Big Taboo in Private Lending for Commercial Real Estate

May 16, 2011 2 comments

Happy Anniversary Andy & Monalisa Sabo

My wife, Monalisa and I just celebrated our 24th anniversary. She is my soul mate and I could never have found a better person to spend my life with. We have truly loved and respected each other all these years and are the perfect match.

The Perfect Match

By now you know that I am an Agent representing Private Lenders for Commercial Real Estate. Those of us in this business specialize in certain types of loans, based on the offerings of our Lending Groups.  One of the problems in this industry is that the lending groups are looking for the perfect match.

This article may seem self-deprecating as I try to give a realistic view of Private Lending Groups for Commercial Real Estate. Many agents contact me with loan requests that were turned down by their lender. Instead of walking away, they try to find someone who can solve their problem. We all do this because we want to help our clients. That should be a good thing, but it is frowned upon by the Lending Groups.

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The Key to the Private Lending Vault

May 2, 2011 1 comment

As a private lender for commercial real estate, I receive requests everyday for loans and equity partnerships. On average, about 1 out of 100 is presentable to the lender and 1 out of 25 of those is fundable. If you are a broker or an investor looking for a loan for a commercial real estate purchase or refinance, you could save yourself some time and frustration by giving the lender what they need to evaluate your request.

Start by Selling the Borrower

The best loan request I ever got started out with a short paragraph telling about the borrowers. “Chris and Anthony Jones have made an offer that has been accepted on an apartment building in San Francisco, CA. The purchase price is $12M. The borrowers own 2 other buildings in the area that are free and clear. Their combined net worth is $80M. Their
credit is excellent. Their total debt is $3M on their home and they have sufficient reserves to cover their debt.”

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