Loan Officer Gustan Cho
Loan OfficerForum Replies Created
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Attached is a short video clip on an abandoned baby macaque monkey 🐒 that smiles. Look at how cute 😍 the baby orphaned macaque monkey is.
https://www.facebook.com/share/r/1Na7JuTdDw/
facebook.com
"Let your smile be as innocent and joyful as a baby monkey’s! 😍🐒" . . . #babymonkey #smile #sololeveling #MonkeyLife #short #shortsviral.
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More photos
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More pictures of German Shepherd babies. The two females need to get spayed. Chase is neutered. The floppy ears is a female Bailey.
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Here are the three Long Hair German Shepherd Dogs i have. Chase, Sylar, and Bailey.
🤠😎
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Great topic George. Can you cover all types of business funding with special emphasis on MCA, Factoring, Equipment Leasing, Lines of Credit, Credit Card Processing, Invoice Financing, and other types of business funding and financing. Thank you.
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Great question and many conflicting or vague answers. I have originated and helped many mortgage loan originators with IRS payment agreements and qualify and get approved for a loan. On FHA loans, as long as you have a written payment agreement with the IRS and have been paying the minimum payment as agreed on the written payment agreement for three months, you are eligible to qualify for an FHA and conventional loan. If the payment increases, the new increased payment will be used for debt-to-income ratio calculations. The previous monthly payment gets replaced with the new payment. HUD allows you to go on a written payment agreement on federal income taxes that are in arrears and federal income tax liens as long as you have made three timely payments.
Fannie Mae and Freddie Mac allow you to go into a wetten payment agreement on federal income taxes that are in arrears with no waiting period. There is no three-month minimum payment to the IRS required on conventional loans. However, FANNIE MAE and Freddie Mac do not allow borrowers who have a tax lien to go on a written payment agreement. You cannot qualify for a conventional loan with a federal tax lien. You need to pay off the federal tax lien to qualify for a conventional loan.
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Great topic of discussion, Peter, What you stated makes all the sense in the world and if you take an overview of what is stated, it is common sense. However, as we all know, the government does not have common sense. Regardless, great advice and I will take the bulletpoints of this post seriously and spread the link out for those who benefit from what you say. By the way, what are your thoughts of the Trump Administration abolishing the Internal Revenue Service where individuals do not have to pay federal income taxes? What are your thoughts of the Trump Administration abolishing the Federal Reserve Board?
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Comprehensive Strategy for Commercial Lending Transition
- Enhanced Learning of Commercial Lending Procedures
- Comprehensive Approach to Education and Training
- Formal Instructional Programs
Coursework in Multifamily and Commercial Mortgage Banking (MBA)
- It encompasses property valuation, loan structures, and underwriting basics.
- Usually needs 40-60 hours of coursework.
- On average, complete series costs $1,500-3,000
- Awarded a professional designation after completing the series
Designations Of The CCIM Institute
Four core courses:
- Investment Analysis
- User Decision Analysis
- Market Analysis
- Financial Analysis
Requires completing a portfolio demonstrating experience. 1-2 years to achieve is common. Very renowned in circles of commercial real estate
The MBA (Mortgage Bankers Association) Education
- Basics of Commercial Real Estate Mortgage Origination.
- Analysis and Underwriting Of Commercial Loans.
Case Study: Finance On Commercial Real Estate
- Knowledge Of Specialized Requirements
- Qualitative Knowledge Required
- Financial Analysis
Mastering the crafting and analysis of Pro Forma
Interpretation and calculations of the following key metrics:
- NOI (Net Operating Income) calculation methods
- Debt Service Coverage Ratio (minimum typically 1.25xDSCR)
- Loan-to-value ratio (LTV)
- Cap rate analysis and determination
- Debt yield ratio (annul NOI/loan amount)
Expertise Related To Types Of Properties
- Office: Tenant quality, lease terms, market vacancy rates
- Retail: Traffic numbers, co-tenants, anchor tenants
- Industrial: Ceiling heights, loading capacity, location logistics
- Multifamily: Rental rates, unit mix, expense ratios
- Specialty (hotels, self-storage…): Management requirements, operating models
Skills Needed for Market Analysis
- Competitive property analysis.
- Rent growth projections.
- Supply/demand dynamics.
- Absorption rates and trends.
Self-Direction Learning Resources
Books
- John McMahan: The Handbook of Commercial Real Estate Investing
- Michael Reinhard: Commercial Mortgages 101
- Peter Conti: Commercial Real Estate Financing
- Commercial Property Executive, Globe St, and Commercial Observer are examples of relevant industry publications.
- Podcasts: Commercial Real Estate Elite and Commercial Real Estate Show
- Online Resources: LinkedIn Learning and Udemy udemy offer courses focused on commercial real estate.
Mentorship Outline
- Weekly meetings
- Deal review sessions
- Shadowing client meetings
- Formal mentorship arrangement with established commercial lenders allows for shared compensation on client deals at a 70/30 split.
- Co-brokering fosters an agreement on clear roles and responsibilities, written partnerships, and defined timelines for independence.
Commercial Loan Programs
- Bank and Credit Union Programs
- Conventional Commercial Loans
Typical Terms
- Rate: Prime + 1 – 2.5% or 5-year Treasury + 2 – 3%
- Amortization: 15-25 years
- Term: 3, 5, 7, or 10 years with balloon payment
- Prepayment penalties: Step-down structure (03-02-01)
- Closing costs: 1-3 percent of the loan amount
Documentation Requirements:
- Lease abstracts for major tenants
- Rent rolls
- Financial statements from the borrower over the last 3 years
- 2-3 years of property operating statements
- Private guarantor’s financial statements
- Company documents (bylaws, operating agreements)
- Assessment of property condition
- Phase I environmental site assessment
Key Underwriting Criteria
- Minimum DSCR: 1.25x – 1.35x
- Maximum LTV: 65-75% (depending on property type)
- Minimum Debt Yield: 9-12%
- Global cash flow analysis of borrower
- Liquidity requirement: 9-12 months of debt service
- Experience requirement: History with similar assets
- Programs Offered by Life Insurance Companies
- Uses other bank lenders to differentiate
- Longer terms available (30 years maximum)
- Rate lock for the full period available
- Lower leverage: typical 60-70% LTV
Focus on
- better quality properties
- Less concerned with borrowers & more focused on property
- Not as constrained by real estate market changes
Typical Target Properties
- Class A office buildings
- Strip centers with anchors
- Industrial buildings with grade-A tenants
- High-quality multifamily dwellings
- Expanded Details Regarding SBA Loan Programs
- SBA 7(a)
- Purpose of Loan
- Acquiring another business
- Purchasing commercial real estate
- Buying equipment
- Providing operational funds
- Refinancing existing debt
Primary Highlights
- Guarantee fees of 2.25 to 3.75% of the amount guaranteed
- There is no penalty for prepayment, only on loans exceeding 15 years.
- Maximum loan $5 million
- LTV up to 90%, owner-occupied only
- 25-year amortization for real estate
- For-profit businesses under SBA size standard meet Eligibility
- 75% LTV for non-owner-occupied, up to 85% for previously occupied
Required Documents
- SBA 1919 (borrower’s details)
- SBA 413 (personal finance details)
- Project associated business tax returns in the preceding three years
For all individuals with a greater than 20% ownership stake, please provide:
- Personal tax returns for the last 3 years.
Please provide the following files:
- Debt Schedule
- Purchase Agreements
SBA 504 Program
Maximum Loan Amounts
- Standard businesses: Up to $5.5 million CDC portion
- Manufacturing or energy-efficient projects: Up to $5.5 million
Rate Structure
- Fixed-rate CDC portion: Treasury bonds-based
- First mortgage: Market rate determined by lender
Job Creation Requirements
- A job for each 75k of CDC financing, or
- Satisfy public policy or community development goals
- CMBS Loans – Detailed Analysis
Structure and Mechanics
- Loans specifically designed for securitization purposes
- Securitized together with a pool of other loans and sold to investors as bonds
- Serviced by specialized CMBS servicers (typically nonrecourse with carve-out guarantees)
- More aggressive leverage options (up to 75-80%LTV)
Unique Features
- Single Purpose Entity (SPE) Requirments
- The borrower must be a separate legal entity
- Other significant assets or operations are not permitted
- Independent director requirements
Prepayment Structures
- Defeasance (substitution of collateral with government securities)
- Yield maintenance
- Prepayment penalties
- Lockout periods (typically 2-3 years)
Reserves and Escrows
- Replacement reserves
- Tax and insurance escrows
- Tenant improvement/leasing commission reserves
- Cash management provisions
Ideal Property Types
- Properties with low rollover risk and stabilized characteristics.
- Credit tenants and national tenants.
- Office, retail, industrial, multifamily, hospitality, and other sectors.
- Properties in secondary and tertiary markets (sought after for higher yields).
- The minimal loan amount is often $2 million or greater.
Bridge Loans ─ Comprehensive Overview
- Use Cases
- Value acquisitions.
- Repositioning projects.
- Lease-up scenarios.
- Rapid closings for high-urgency deals.
- Recapitalization of held properties.
- Exiting construction loans precociously to stabilization.
Terms and Structures
- Extension options: secondary term of 6-36 months.
- Market-dependent rates of 6-10%.
- Common exit fees of 1-2 points origination.
- Reserve interest in project costs, usually capped at 80-85%.
- Subsequent funding portions: Reserved for project modification pre-stabilization.
- Partial for full recourse or nonrecourse options.
Preliminary lenders include:
- Debt funds
- Private equity firms
- Specialized bridge lenders
Mortgage REITs
- Some specialized program banks.
Hard Money/Private Money ─ Detailed Breakdown
- Lending Parameters
- AVR capped LTV ratio shot 65-75% margin after repair.
- Market-dependent rates of 8-14%
- 2-5 point fees
- 6-24 month terms.
- The prerequisite exit plan speeds up overall approval.
Required Documents
- Property description with photographs.
- Purchase contracts.
- Rehabilitation budgets along with timeframes.
- Exit strategy documents.
- Experience profiles of the borrower.
- Credited file alongside user’s background.
Ideal Scenarios
- Acquisition of distressed assets.
- Time-sensitive deals.
- Properties not in-stabilized.
- Need non-stabilized assets.
Becoming Affiliated with Wholesale Commercial Lenders – Detailed Process
- Identification and Research Phase
- Comprehensive Lender Research
Construct a database of potential lending partners based on the following criteria:
- Loan size parameters
- Specialization in certain types of properties
- Geographic focus
- Fee and rate levels
- Flexibility in underwriting
- Timeframes for processing
- Servicing approach post-closing
- Line servicing
Approach Servicing Post-Closing
- Post Closing Servicing
- Resources for Lender Identification
- Commercial mortgage alert (commercial trade publication)
MBA Commercial Lender Database
- Trade associations conferences like MBA CREF, CREFC
- LinkedIn groups for commercial lending
- Local associations of commercial real estate
Initial Evaluation Criteria
- Service history within the specific target geographical region
- Reputation from broker (peer interview)
- Target offerings from competitors
- Submissions of streamlined technology systems
- Commission strategy as to when payments are made
- Availability of support staff
- Training programs offered
Application and Onboarding Process
- Documentation Package Development
- Industry profile and company history
- Organizational chart with short bios of the covering key personnel
- Licenses and certificates relevant to the subject
- E&O insurance documents
- Summaries of sample transactions
- Describing referring clients and other business partners
- Providing a business and marketing plan
Due Diligence Preparation
- Checking the background of the principals involved
- Checking credit (personal and business)
- Reviewing legal compliance
- Verifying the financial stability
- Providing other wholesale references
- Analyzing historical transactions
Negotiation of The Agreement
- Commission structure with volume bonuses and other incentives
- Advertising training (marketing) commitments
- Exclusivity shun if able)
- Restrictions of the territory, if any
- Expectations in performance
Relationship Development and Maintenance
Building Relationships for Account Executives
- Don’t forget to check in at least every month.
- Please invite them for team presentations at your office.
- Ask for deal reviews for transactions that were declined.
- Promote market opportunities and share relevant intelligence.
- Celebrate closed deals together.
Performance Monitoring and Enhancement
- Monitor the deals and the ratio per lender from submission to closing.
- Compare time expectations to performance and monitor timelines.
- Analyze how price competition measures up.
- Document challenges and the methods for resolving them.
- Keep a scorecard per lender account and their respective relationship.
Advanced Strategies for Developing Relationships
- Join lender advisory committees.
- Join boards as a beta tester for new initiatives.
- Help with feedback market.
Guidelines for Brokers Analysis
- Set Recommendations to improve process and program development.
Eligibility Instruction Manual and Requirements of Commercial Brokers
- Strategy for Improving Business Structure
- Choices in Entity Selection Narrative
- Limited liability, flexible LLC taxation.
- Potential tax benefiting S-Corp for operator owners.
- Larger operations C-corp with multiple shareholders are appropriate.
- Meeting with CPA and business attorney required.
Business Setup Procedure
- Filing of incorporation or organization articles.
- Applying for an EIN.
- Setting up a business bank account.
- Developing bylaws or operating agreements.
- Applying for state and local licenses.
- General policy coverage is needed.
- E&O, errors and omissions of $2-1 million will be required to incur.
- Annual premiums of $5-1,500 on volume will be required.
- Do not list claims made; occurrence policies are needed.
- Cyber liability insurance protects against data breaches.
- Client meeting premise offices also require $1 million of general liability insurance.
- Protecting client data
- Now more than ever, it is needed by wholesale lenders.
Office Location Specifications
- Private meeting area for clients’ confidentiality.
- Safe document storage (both physical and digital).
- Professional address (actual address or virtual office).
- Hardware and software are required to facilitate secure communication.
Financial Guidelines And Thought Processes
- Strategic Capital Allocation
- Operating Capital
- Minimum 6 – 12 months of projected expenses.
- Marketing investment reservation (10 – 15% of revenue).
- Investment in technology.
- Funding for professional training and development.
Challenges Related to Revenue Timing
- Commercial transactions take 60-90 days to complete.
- Commissions payments are generally 1-2 weeks post-closing.
- A 3-6 month ramp-up period is required without any closing.
Banking Relations
Gain relationships with commercial lenders for enhanced credibility.
Separate business accounts and personal finances.
Business credit accounts for flexible operations.
Merchant accounts for customer payment processing.
Accounting Procedures
- Appropriate software for tracking deals.
- Systems for commission calculation and reconciliation.
- Managing and classifying incurred expenses.
- Tax management and reporting compliance.
Building Experience Credibility
- Professional portfolio development.
- Summaries of transactions (anonymized to protect confidentiality).
- Case studies on deal structuring.
- Documents illustrating problem-solving processes.
- Before-and-after changes to properties.
- Client success stories (With client approval).
Outline Additional Credentials
- CCIM (Certified Commercial Investment Member).
- CMB (Certified Mortgage Banker).
- Commercial Real Estate Finance (CREF) certification.
- Professional memberships.
Mortgage Bankers Association (MBA).
- NAIOP (Commercial Real Estate Development Association).
- Urban Land Institute (ULI).
- Local real estate investors associations.
Creating Powerful Thought Leaders
- Creation of content strategy.
- Quarterly publishing to attain thought leadership stature. Maintain diverse domain articles.
- Selection of public speaking engagements at industry-specific conferences.
- Host educational events like webinars.
- Attain and retain local media relations.
Targeted Lead Generation For Commercial Loans – Actionable Strategies
- Master plan that highlights all networking contacts and actions to be done.
- Market by Professional Category.
- Commercial Real Estate Solicitors
- Attention to: transaction lawyers, land use lawyers, foreclosure lawyers.
- Value proposition: problem-advanced financing and solution expertise.
- Method: joint presentations or educational lunches.
CPAs and Other Tax Advisors
- Target audience: Business owners and investors as clients.
- Value proposition: structuring financing with tax advantages.
Commercial Real Estate Agents
- Includes brokers specializing in selling and leasing investment properties and tenant representation brokers.
- Value proposition: pre-qualification, fast reply servicing.
- Approach: sneaking into their deals and giving them financial analyses.
Real Estate Property Managers
- Focus: Those in charge of managing investment properties and owning portfolios.
- Value proposition: prevalent refinancing, acquisition financing.
- Approach: portfolio reviews and introductions to owners.
For the Selection of a Networking Venue
- Business events specific to certain industries vs. general functions are places where a broad audience can go.
- Leadership positions in relevant organizations for club and charitable teams are often used to target clients.
- Membership for the country for social clubs.
Tied To Personal Brand Visual—Relationship Development Timeline
- Initial phase contact and discovery stage—1-2 meetings
- Educational phase—value offering with no ask
- The trial collaboration phase is for the first referral and handing over.
- The regular relationship phase is systematic and super communicative.
- Strategic partner phase—business approach integration.
Broaden the scope of Marketing Strategy.
- Digital Marketing Ecosystem
- Website Development
- A loan site with a section dedicated to a more commercial emphasis or an entirely separate site.
Commercial Real Estate Blog
- Property type-specific landing pages
- Property-type commercial loan calculators
- Case studies organized by property type
SEO Strategy
- Local commercial lending keywords
- Property type-specific terms
- Problem-based search terms
- Long-tail search phrases that are questions.
- Content marketing strategy
- Educational blog series
- Commercial financing and market analysis reports (quarterly)
- Video case studies
- Podcast interviews with industry experts
Direct Marketing Campaigns
- Group Target Development.
- Database of commercial property owners.
- Recipients of loans coming due (public information).
- Lists of recently registered companies (New business formation).
- Lists of business owners within a specific industry.
- Recent buyers of commercial real estate.
Multi-Channel Approach
- Direct mail (3 to 5 times).
- Email correspondence.
- Targeted outreach on LinkedIn.
- Personalized telegrams.
- Follow up by phone.
Direct Marketing Campaigns
- Tax strategy workshops with partnered CPAs.
- Economic forecast events
- Lending environment updates
Event Marketing Strategy
- Educational Events
- Roundtable discussions for executives (exclusive access).
- Webcasts, webinars, and virtual events.
- Annual conference for forecasts.
Format Options
- Healthcare, self-storage, hospitality, medical, and two or three other verticals are on focus.
Specialized Industry Involvement
- Join industry-specific associations.
- Attend specialized trade shows.
- Subscribe to industry publications.
- Obtain industry with focused publications.
- Develop board membership.
- Sponsor key events and chair committee or serve as proxy for absent committee members
- Attend and give talks at various workshops and conferences.
Content Contribution Plan:
- Guest lectures on company needs
- Write for major company publications.
- Participate in interviews during company campaigns.
- Contribute to external research papers published by the company.
- Collaborate on research with other institutions.
Lead Generation Case Scenarios – Expanded Analysis
Commercial Real Estate Network Specialist Case 1: Detailed Breakdown
- John began as a residential mortgage broker before transitioning to commercial lending after 8 years in the business.
- He realized that lenders who didn’t cater to their specific requirements neglected commercial real estate agents.
- Make it about the real estate business, specifically their commercial and investment services.
- Make the branding about Brokers and Associates and investment strategists and image the following case studies as a collaboration.
- Pick three agents from the Brokers and Associates and image these case studies as if they were their cases.
- Each agent has different injuries (problems), so focusing on one symptom will not resolve the underlying problem. Furthermore, each problem can be defined in such a way that it has many different solutions, which aids in breaking decision-making complexity.
- A solution offering the maximum total of all possible sub-optimizations can be termed on the whole as the best composite strategy.
- Flip summarizing to “what’s in it for me.”
- Emphasize the differences in closing/defining the amount of clients each revenue-generating activity has and the granularity of their subdivided efforts.
- Highlight the behavioral segmentation of their buying and interaction style. Capture how they interact and their preferred method of operation.
- Coordinate all focused groups to education under “webinars” and mark all lunches as sponsored to change the tone and perception.
- By the people you support and help, showcase others dealing on a not-so-everyday basis and try to see just how much difference there is between “normal” and “us.”
- Tailor the agency mark advantage services to ensure that this guarantee can be systematized as clear metric reporting.
- When focusing on an Off-Market Case Study Maintenance Facility, track what other industry subtasks seem most trivial/practical to achieve.
- Show off this covered mentality, creating goal systems to strive for whenever you pair up with a partner.
- These self-created restrictions and extra targets make documenting time enjoyable rather than measuring the time.
- Confronting expectation variety shows optimal effects for resolving individual issues.
- Unveil targets and capture photos of ontological evidence of that.
I understand you want to make the content more engaging while integrating the subject of commercial and investment real estate services. Still, the details were altered and infused based on your request. Let me know if I can assist you in any other way!
- Increased coverage from 25 to 38 agents in year two.
- Volume for year two: $72.6 million (Increase of 50%)
Case 2: The Business Banking Alliance Strategist – Holistic Approach
Background:
- After spending 5 years working in SBA lending, Sarah became a commercial mortgage broker.
- She observed that banks were required to say no to several very good clients due to policy constraints. Zions’ Approach:
Selection and Identification of Banking Partners
Research and Scouting
- She found 35 community and regional banks in her region.
- Studied all of their lending criteria and restrictions.
- Checked recent regulatory orders and constraints.
- Sorted based on their lending gap analysis.
Relationship Management
- Organized meetings with heads of the lending departments.
- Developed custom proposals for each bank.
- Positional complementarity (not competition) was defined.
- Formally established a system for tracking referrals.
Business Development
- Implemented Banking Partner Program.
- Specialized in underwriting neglected loans
- Exceeding their set ceilings.
- Policy excluded properties.
- Outsized clinical ratios.
- Needed faster closing.
- Clients were guaranteed to return for deposit relationships.
- Provided referring bankers with monthly reports.
- Shared industry and market updates.
Execution and Implementation
- Bank Staff Training.
- Trained the lending team.
- Prepared comprehensive reference materials for fiction loans.
- Provided successful referral case studies.
- Established standards of communication.
Finalization Process Improvement
- A one-page submission form simplifies the referral process.
- Acknowledge the banker and client within the same day.
- Weekly status updates for referring bankers.
- Attend joint closings when possible.
- Thank you for the post-closing summaries.
- Track record with 12 banks, 18 transactions worth 1.4 million in the first 14 months.
In the second year, the number of transactions jumped to 31, accumulating a 72% increase and eventually totaling 43.4 million.
The top producing one bank relationship is $8.7M from 6 loans.
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Below are the links to particular state DRE websites of importance:
California DRE:
California’s website alerts consumers, licensing, and regulations about the DRE.
Illinois DRE:
- It contains useful materials from the real estate branch, such as information on licensing and renewal of licenses.
- These licenses are essential for grasping the particulars of real estate licensing in the United States.
Social Media Links