Commercial Real Estate Loans

How To Start Offering Commerical Loans To Your Residential Mortgage Business? What are the step by step process for a mortgage broker to become a all-in-one, one-stop business, commercial, and residential mortgage broker and correspondent lender?

Anyone have more information about Lending Network, Inc. and what type of company Lending Network, Inc. is? Who is the CEO of Lending Network, Inc.?

I am in charge of a regional mortgage branch office licensed in 48 states am have a licensed mortgage originator colleague who has a potential client who has an investor who owns a hotel/motel in Texas. My MLO colleague has a client who needs to do a rate and term refinance on a commercial loan. I am a licensed NMLS licensed mortgage loan originator and have owned, and managed 3,000 plus residential units consisting of free standing apartment buildings and seven apartment complexes and am familiar with originating mutli-family commercial loans. but not motels and/or hotels. My expertise on commercial loans are free standing apartment buildings and apartment complexes. My associate reached out to me for advise and guidance on him taking on financing this motel-hotel for this investor. Can you please guide and advise us on the steps on proceeding with this borrower? The investor/borrower will be getting multiple quotes from commercial lenders so me and my fellow loan officer would like to get the borrower the best rate and term and become the winning bid on this motel financing commercial loan. Can you guide us through a Step by step process starting on the documentation needed? I worked on my own commercial loans on the apartment buildings and apartment complexes that needed financing and the general docs commercial banks and brokers needed were the following:

Summary Statement of the history of the property owned including but n ot limited to the history of the property and scope of work such as the purchase price, loan-to-value, renovations completed and/or budget and capital required, type of loan requesting includoing recourse or non-recourse, personal financial statenent, schedule of real estate owned, profit and loss statement, nearby comparable sales, and any documentation or data supporting the strength and risk tolerance of the subject property. I am assuming motel-hotel financing probably requires similar data and documents. Again, if you can guide us through the comprehensive step of the commerical lending process from start to finish as well as commercial lenders that are broker friendly it would be greatly appreciated. Thank you in advance.

Mobile home parks are great investments and are becoming increasingly popular and profitable. Who finances Mobile Home Parks and how do you qualify. What are the financing guidelines of Mobile Home Parks

I am a residential mortgage loan originator and want to diversify my mortgage origination business to business and Commercial loans. Can you please give me a comprehensive detailed step by step overview on how to about it? How does you learn the business and Commercial Lending process as a Commercial business and Commercial loan broker? What type of business and Commercial loan programs are there? How do you become affected with a wholesale direct Commercial lender? What are the eligibility and requirements to be a business and Commercial lender? How do you get leads on business and Commercial loans? Can you please share three case scenarios on how business and Commercial Loan Officers generate leads? With who and how do you Network with potential referral partners? How can do subtly merge your residential lending business model with a business and Business and Lending Platform? Do business and Commercial Loan Officers need to get licensed and if so what are the licensing and bonding requirements? Thank you in advance.

Here is the suggested Q&A:

What is the commission rate for a self-gen commercial loan originator?

The commission rate for a self-gen commercial loan originator is 50% of broker revenue from funded loans.

What is the commission rate for a Com-Gen Commercial Loan Originator?

The commission rate for a Com-Gen Commercial Loan Originator is 35% of broker revenue from funded loans.

What is the commission rate for an internal referral?

The commission rate for an internal referral is 15% of broker revenue from funded loans.

Is there a cap on commission earnings for commercial loan originators?

No, there are no caps on commission earnings for Commercial Loan Originators.

What is the commission rate for a commercial loan processor?

The commission rate for a Commercial Loan Processor is 10% of broker revenue from funded loans.

What is the monthly cap on commission earnings for a commercial loan processor?

The monthly cap on commission earnings for a commercial loan processor is $7,000.

What is the production bonus for a commercial loan processor?

For commission earnings exceeding the $7,000 commission cap, a commercial loan processor will receive a payout at 5% of broker revenue for funded loans.

What is the commission rate for a closer/funder/recorder?

The commission rate for a closer/funder/recorder is 5% of broker revenue from funded loans.

What is the production bonus for a closer/funder/recorder?

For commission earnings exceeding the $7,000 commission cap, a closer/funder/recorder will receive a payout at 2.5% of broker revenue for funded loans.

What is the commission rate for a referrer?

The commission rate for a referrer is 15% of broker revenue up to $1,000 per file

Where can I get the best rates on commercial loans? How are mortgage rates on commercial loans priced? How can I get the lowest mortgage rates on commercial loans?

Can someone please explain the difference between recourse and non-recourse loans on commercial loans?

What loan program the borrower can qualify for a 6-unit apartment (Purchase)? What are the documents needed?
728 FICO with experience renting out properties (currently have 4 other rental properties).

Hi, I know that 740 FICO is the minimum requirement for Up to $120K credit card based on the lending network website.
Should I increase my credit first or is there a different program for me?

Thank you

I am interested in commercial loans. What does Factoring work and how do I learn about Factoring?

I am more interested in the spec builder new construction loans. My brother Javier and business partner told me he heard Lending Network LLC offers land acquisition and construction loans that does not require a lot of red tape. Thank you.

Loan Officers who have case scenario questions about commercial loans through Lending Network, LLC, please post them on this thread and either Gustan Cho or myself will answer them as soon as possible. Please be detailed in your questions regarding the property, such as the type of property, location, history, and other pertinent facts. Share the purpose of the loan, the current value or P and L, the repairs required, the loan amount, the scope of work, and projected P and L. Besides the purpose of the loan, explain in detail what the money will be used for, and the projected proforma P and L after the renovation or improvements. Explain the current value of the house, the renovation costs, the after improved value, and expected time to stabilize the property. The down payment the borrower has to put down, reserves, and experience of the guarantor or guarantors. If we decided this will be a loan that has merits, the next step will be to have the client complete and personal financial statement and summary sheet to us via email. If you have any questions, please post on this thread or start a new thread. We will start all inquires, case scenario, Q and As on this forum.

https://www.lendingnetwork.org

• This discussion was modified 3 years, 1 month ago by  Sapna Sharma.
• This discussion was modified 1 year, 9 months ago by  Gustan Cho.
• This discussion was modified 1 year, 5 months ago by  Sapna Sharma.
• This discussion was modified 1 year, 5 months ago by  Sapna Sharma.
• This discussion was modified 1 year, 4 months ago by  Sapna Sharma.
• This discussion was modified 1 year, 4 months ago by  Sapna Sharma.

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Home - Lending Network, LLC

COMMERCIAL LOANS, COMMERCIAL REAL ESTATE

Amanda had a question on a real estate investor who has a 35 unit apartment building needing to refinance out of a bridge loan. The apartment building was purchased needing work. As a real estate investor of 7 apartment complexes consisting of 3,000 units, lenders require the following:

1. Summary sheet of the purpose of the loan and property detail. Location. What condition is building in A, B, C, D tier and what type of area is the apartment in A, B, C, D.

2. Personal financial statement

3. Three years of tax returns for conforming traditional commercial loans

4. Current P and L and rent roll which is current and proforma. Eventually need copy of leases. Need to itemized income and expenses which includes insurance, property tax, payroll, utilities, maintenance, water, and third-party vendors. Number of units, and approximate square footage. Number of rooms, bedrooms, bathrooms, and does it have dining rooms. Parking spaces or carports.

5. Type of work done and itemized cost

6. Real estate purchase contract

7. Appraisal if available and estimation of value of the property

8. How many are market rent, and section 8 housing

9. Comparable rents in the area for studio, one bedroom, two bedroom, etc.

10. What type of loan program does the borrower prefer and/or expect: Recourse, or non-recourse. How many owners to the property. Is property individually owned or in a LLC or partnership. Traditional conforming commercial loan or hard money loan, or bridge financing.

11. Any deliquent outstanding bills such as mechanics lien, tax liens, or pending lawsuit.

• This discussion was modified 1 year, 5 months ago by  Sapna Sharma.
• This discussion was modified 1 year, 4 months ago by  Sapna Sharma.

Please make sure all LOs have this

How to find active builders and spec builders.

one way is to

go to realtor.com, choose a large city

go to filters, click home, age no min, and less than one year. This should list the new construction homes.

get the addresses, the agent usually doesn’t want you speaking with their client, however, call the agent anyway and let them know that you can help their builder to build more homes, and sometimes they will introduce you. if not, then

do a Google search for parcel search using the city, county and state

. Usually, they have a gis map, and you can use it to locate the owner and the owner’s address, where you can further search and get a cell phone.

realtor.com is a great source to see who is building where and at what price.

• This discussion was modified 3 years ago by  Gustan Cho. Reason: Wrong information

realtor.com

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Did you know, we can count rental income from an ADU on a DSCR Loan and allow for multiple ADU’s.

There are certain states that you cannot do NO-DOC Loans. Anyone know what states you cannot do no-doc loans.

• This discussion was modified 2 months, 2 weeks ago by  Sapna Sharma.

Hello,

The borrower is a new Buddhist non-profit organization (Church. Actually they call it temple.) This organization is planning to buy a property in NY or NJ to establish a place for retreats, different events and classes. Their teacher, Rinpoche,  is well known in Europe, US, Mongolia, India and many other countries. Where to start, what documentation do they need, how much money do they need for down payment, etc. Thank you, Tatiana

CASE SCENARIO QUESTION FROM TAYLOR GILMORE ON DSCR LOAN

Hi Gustan,

Could you do the deal below?

commercial
refinance
in LA
on Westin
currently occupied to child care center
government program
DSCR is 1.49
building appraised for $1.2mn
$500k loan currently on property
mortgage she’s paying is $3500
income from child care center is $5400
good DSCR

Best regards,
Taylor Gilmore

• This discussion was modified 3 years, 1 month ago by  Gustan Cho.
• This discussion was modified 3 years, 1 month ago by  Gustan Cho.
• This discussion was modified 3 years, 1 month ago by  Sapna Sharma.
• This discussion was modified 1 year, 9 months ago by  Sapna Sharma.
• This discussion was modified 1 year, 5 months ago by  Sapna Sharma.

CASE SCENARIO FROM DANNY VESOKIE QUESTIONS: Are you a super broker or direct lender. FINANCIAL PACIFIC out of Seattle did a food trailer for $45,000, 25% to 30% rate, $1,100 month for 60 months. EFA EQUIPMENT FUNDING AGREEMENT FIRST MONTH AND LAST MONTH DOWN. COMMERCIAL LOAN BROKER MADE 12% COMMISSION. DOC FEE $250, PREFUNDING FEE OF $200.END USER PAYS TO RESTAURANT OWNER. DMV PAPERWORK PRO TRUCK COMPANY PAYS. CREDIT SCORE 700, 7 YEARS IN BUSINESS.

HOW DO COMMERCIAL LENDERS VIEW BORROWER’S CREDIT?

I am new to the commercial loan origination industry. My wholesale commercial lenders are asking to prepare personal financial statement of each commercial loan applicant. How do you complete a complete financial statement?

• This discussion was modified 1 year, 11 months ago by  Bailey.

What is a private money loan? What is the difference between a private money and hard money loan? How Do I Qualify for a Private Money Loan? What is the eligibility requirements to qualify and get approved for a private money loan? What is better? Private money loans or hard money loans? Where can I get approved for private money loans fast?

• This discussion was modified 1 year, 11 months ago by  Gustan Cho.

does anyone know of a commercial lender for a 24 unit in Colorado I can refer a client to?

100% financing for purchasers of commercial real estate in all 50 states is available.

The purchaser’s business will just need to occupy 51% of the square footage of the property.

Provide a zero down payment option for your clients:

~ To acquire an existing commercial real estate property

~ To refinance a property they already own (25-year amortization)

~ To construct a building from the ground up

Working capital can also be added to the loan for improvements, buildouts, etc.

100% financing is also available for clients looking to acquire a business.

Get in touch to add zero down payment financing to your lending arsenal.

Lee Kramer 301-495-8993

I just joined and wanted to introduce what I provide: Unsecured funding for startups and established businesses. If you have clients that are having difficulty getting conventional funding for working capital, franchise fees, or any business purpose, please get in touch and we will more than likely have a solution for them. No collateral or down payment, no credit requirement for established businesses, monthly payments with rates as low a 9.00%, funds up to $500,000. Please call 301-495-8993 or email to lee@nextbizloan.com. Thanks!

Gustan Cho is the President of Mortgage Sensei and the CEO of Lending Network Inc. Both positions place him at the helm of influential financial organizations within the mortgage and lending industry. Here’s a bit more about each of these roles and the respective organizations:

Gustan Cho

• Role: President
• Focus: Gustan Cho is likely to provide mortgage solutions, consulting, and educational resources for consumers and industry professionals.
• Services: The organization may offer various services, including mortgage brokerage, loan origination, and mortgage education.

Lending Network Inc.

• Role: CEO
• Focus: Lending Network Inc. operates as a comprehensive lending service provider. It may offer various loan products, including residential mortgages, commercial loans, and other financing solutions.
• Services: The company likely provides financial products and services aimed at helping individuals and businesses secure the funding they need. This can include everything from personal loans to large-scale commercial financing.

Contributions and Impact

• Leadership: As a leader in these organizations, Gustan Cho plays a key role in strategic decision-making, business development, and overseeing daily operations.
• Industry Influence: His positions suggest a significant influence in shaping the direction of mortgage lending practices and policies within the industry.

Contact and Further Information

• For more detailed information about Gustan Cho’s work and the services offered by Mortgage Sensei and Lending Network Inc., it would be beneficial to visit their respective websites or professional profiles on business networking sites like LinkedIn.

Unfortunately, detailed information about Gustan Cho’s work and the services provided by Mortgage Sensei and Lending Network Inc. may not be readily available in the public domain. If you require more precise details or wish to contact these organizations directly, consider reaching out through their official websites or professional contact channels.

Visit us at Lending Network, Inc. https://lendingnetwork.org/

• This discussion was modified 1 year, 5 months ago by  Sapna Sharma.
• This discussion was modified 1 year, 5 months ago by  Sapna Sharma.
• This discussion was modified 1 year, 4 months ago by  Sapna Sharma.
• This discussion was modified 1 year, 4 months ago by  Sapna Sharma.

lendingnetwork.org

Home - Lending Network, LLC

COMMERCIAL LOANS, COMMERCIAL REAL ESTATE

Lending Network, Inc. is the commercial lending division of Gustan Cho Associates headed by Gustan Cho. Gustan Cho is the President and Managing Partner of Operations of Lending Network, powered by NEXA Mortgage.

Lending Network, Inc., dually powered by Gustan Cho Associates and Mortgage Sensei, is a commercial financial services company that deals with various business, investment, and commercial mortgage loan products and lending solutions not offered by traditional banks and commercial financial institutions.

What Types of Commercial Loan Programs Does Lending Network Offer

Lending Network has a national reputation for being able to offer business and commercial loans that other financial institutions of business and commercial financial products cannot do. With the backing of the largest residential mortgage broker in the nation, NEXA Mortgage, it is easier to ask us what commercial loan program Lending Network does NOT do. We strive to live by our national reputation as a one-stop lending shop. Lending Network aims to give individualized monetary answers that cater to the distinct requirements of borrowers of business and commercial lending options, even if they do not fit into standard traditional commercial loan qualifications. For more information, please refer to their official website – http://www.lendingnetwork.org

• This discussion was modified 2 years ago by  Gustan Cho.
• This discussion was modified 1 year, 5 months ago by  Sapna Sharma.
• This discussion was modified 1 year, 5 months ago by  Sapna Sharma.
• This discussion was modified 1 year, 4 months ago by  Sapna Sharma.

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Page Not Found - Lending Network, LLC

Page Not Found - Lending Network, LLC

When seeking financing from a commercial lender for a six-unit apartment building, you will need to provide a comprehensive set of documents and information to demonstrate your ability to manage the property and repay the loan. Here is a list of what you typically need to give to a commercial lender:

1. Business Plan: Provide a detailed business plan that outlines your investment strategy, property management approach, and financial projections. Include information about the location, market analysis, and your long-term goals for the property.

2. Loan Application: Complete the lender’s loan application form, providing personal and financial information about yourself and any co-borrowers.

3. Property Information:

   • Property address and legal description
   • Property photos or appraisals
   • Description of the property’s condition and any planned renovations or improvements

4. Purchase Agreement: If you’re acquiring the property, include a copy of the signed purchase agreement with the seller.

5. Financial Statements:

   • Personal financial statements for you and any co-borrowers
   • Business financial statements if you have an existing real estate investment company

6. Rent Roll: Provide a detailed rent roll that lists the current tenants, their lease terms, rental rates, and any delinquencies. This helps the lender assess the property’s income potential.

7. Operating Expenses: Document the property’s operating expenses, including property taxes, insurance, utilities, maintenance costs, and property management fees.

8. Income and Expense Projections: Create income and expense projections for the property to demonstrate its potential cash flow and profitability. Include details such as expected rent increases and expense trends.

9. Property Management Plan: Outline your property management strategy, including who will manage the property, their qualifications, and any third-party management agreements.

10. Credit Report: Expect the lender to check your credit history and the credit history of any co-borrowers.

11. Down Payment and Equity: Provide information on the down payment you plan to make and any existing equity in the property, if applicable.

12. Appraisal: Typically, the lender will require an appraisal of the property to determine its current market value.

13. Title Report: A title report is necessary to confirm that there are no outstanding liens or legal issues with the property.

14. Environmental Reports: Depending on the lender’s requirements and the property’s history, you may need to provide environmental reports, especially if there is a concern about contamination or hazardous materials on the property.

15. Legal Documents: Any legal documents related to the property, such as leases, contracts, and property surveys, may be requested.

16. Personal Guarantees: Be prepared to provide personal guarantees if the lender requires them.

17. Entity Documents: If you’re financing the property through a business entity, provide documents related to the entity’s formation, ownership structure, and financial standing.

18. Tax Returns: Personal and business tax returns for the past few years may be required for underwriting purposes.

19. Down Payment Proof: Show proof of funds for the down payment, including bank statements or other financial statements.

20. Insurance Information: Provide details about property insurance coverage and any required insurance policies.

Keep in mind that each lender may have specific requirements and may request additional documents or information. It’s essential to work closely with your lender and be prepared to provide any documentation they request during the underwriting process. Additionally, having a strong credit history, a well-thought-out business plan, and a solid financial position will enhance your chances of securing financing for the apartment building.

Have you gotten a Last Minute Mortgage Denial at your current lender? You are not alone. Over 80% of our clients at Gustan Cho Associates are borrowers who got denied at other lenders. Borrowers got denied at other lenders because the loan officer did not properly qualify the borrower or because of the mortgage company having Lender overlays. Lender overlays are additional mortgage guidelines above and beyond the minimum agency guidelines of FHA, VA. USDA, FANNIE MAE or FREDDIE MAC. The team at Gustan Cho Associates has a no lender overlay business platform on government and commercial loans. We can help borrowers with credit scores down to 500 FICO, non-qm loans, 12 months bank statement loans, DSCR loans, no-doc loans, ITIN loans, DACA LOANS, Condotel Financing, hard money commercial loans, commercial loans, SBA LOANS, Factoring, equipment financing, Business lines of credit, POS, Spec-Builder New Construction, Auto Financing, apartment building loans, land loans, church financing, accounts receivable financing, MCA financing, and land development loans. No need to worry if you got denied. The file is not dead. You can join us where we can help you qualify and get you approved for your commercial or business loan.