Real Estate Loan Process

Our clientele varies from the large nationally based multiple property owners & developers to the smaller , single-property, owners. The expertise of our underwriting department allows us to underwrite simple to complex loan transactions providing our clients with the best structure available.

Preliminary Review

When a principal brings us a loan, we immediately delve in to see if the loan is viable. We feel that it is in the best interest of our clients, as well as ourselves, to advise them from the initial stages whether a loan is feasible or not. When a principal contacts us, we screen the transaction and request preliminary items to analyze the loan. Initially, the following is an example of items needed to determine feasibility:

  • Income and Operating Statement – Year-to-date
  • Income and Operating Statement – Past three years
  • Rent Roll
  • Tax Returns
  • Principal Financial Statement
  • Photos

The above captioned list is a general list for example purposes. Our representative will provide a list conducive to the property type. Our underwriting department will input numbers into our templates and size the loan based on our underwriting criteria. Once we determine that the transaction is feasible, our representative will present the borrower with the best rate and terms available. We diligently work to obtain the best structure source for each transaction and structure the loan to provide the best results for our clients.

Underwriting Variables

Each asset has specific parameters including debt service coverage, loan-to-value, term, amortization, etc. These parameters vary according to property type. In underwriting a loan, management fees, loan to value, capitalization rate, vacancy rate, and replacement reserves are items which are taken into account and vary according to property type.