Prepare yourself to meet your banker - part3
Purchases, Investment and Refinance requests
Commercial Real Estate Articles November 8, 2003
So far your banker knows a lot of information about the property and yourself. However, there might be some other information that he needs to know depending on the type of request that you have.
Note: This list is subjective and list the minimum that I would personally ask. You will be asked more or less depending on the lender and instituton.
PURCHASE REQUESTS These are very time sensitive requests, at a minimum the banker should ask you for a copy of the purchase contract. If this is not immediately available as in You have not signed it yet The process might be allowed to start rolling with the closing date and the purchase price alone. Of course, this is dependent on each bank Some banks do not like to start working on a purchase request until there is something in writing.
REQUESTS INVOLVING INVESTMENT PROPERTIES At a minimum a current leasing status and a rent-roll. The rent roll is a listing of all the units in the building with the name of the tenants occupying the units, the amount of rent and the expiration date of their leases. A good rent roll will also have the date that this tenant started renting. If for example, the tenants are not on leases, but are in a month to month arrangement is bad. However, if you can demonstrate that all of those tenants have been there for years, then it is not so bad.
REFINANCE REQUESTS The emphasis here is property history and historical financial information.
click here for the first part of this article.
click here for the second part.
Latest Forum Posts