Commercial Real Estate Loans For The Imperfect New York Borrower!
The A Borrower
For the Classic A borrower that goes to the bank for a loan, either a refinance or money for a commercial real estate purchase, all of their ducks will be in a row. Their credit score is high, they have money in the bank and the building in question is in great shape in terms of both occupancy and revenue. Net operating income justifies the loan amount and the debt service coverage ration (DSCR) that's calculated for the loan is right in the banks sweet-spot! It's an underwriting slam dunk!
The Imperfect Borrower
Particularly now in the age of Covid-19, both borrower and building may unfortunately be dinged-up! The potential borrower's FICO score and asset base likely have been negatively impacted, while the building in question that was solid pre-pandemic, has lost tenants or has tenants in place who aren't paying. Still, it's a great building with much potential.
In many scenarios like the one above and others, there are ways for The Imperfect Borrower to get a loan. They simply need to be speaking with a commercial finance professional who takes the time to get to know both the people involved and the back story of the loan scenario. The professional will quickly learn why the borrower is being shutout from the lenders only looking for A-loan scenarios and what some alternative solutions may be. And the alternative loans are not 'hard money' in the classic sense, but would be in the neighborhood of 1% or so higher than the A financing.
Enter tonight's guest Stuart Gelb, President of The Liquidity Source and a seasoned pro successfully helping borrowers get the financing they so badly need.
Tonight Stuart talks about the market, his expertise in getting loans to the finish line, the multitude of lenders he has close relationships with and how for many years he has successfully been helping The Imperfect Borrower.
Enjoy the discussion, let us know if you have any thoughts or questions, and Stuart's contact information is below for anyone with a scenario they would like to run by him.
Mike Haltman, CEO
Hallmark Abstract Service
Board Chair, Heroes To Heroes Foundation
Stuart Gelb, President
The Liquidity Source