Commercial Loan Training

Commercial Tips 7-27-10

Head Coach — Tue, 27 Jul 2010 18:50:26 +0000

Summer is in full swing and I’m enjoying it! I had a little vacation time with family recently in the Midwest (can you say HOT AND MUGGY?) and now I’m back in the saddle. I’m finding rates low thanks to recent moves in the Treasury market and some lenders tentatively coming back into the market. On our own account, we’ve seen LTV’s expand, rates remain low, underwriters actually return calls, and a few more property types become “acceptable.” We’re still not seeing much in hospitality, although some of our partner lenders are making some loans there. “In the depth of winter, I finally learned that within me there lay an invincible summer.” – Albert Camus It certainly is harder to focus on work in the summer, isn’t it? I mean even if you are a die-hard ski bum, you just can’t beat warm weather, barbeque, and shorts. We may as well enjoy it, fall and winter are just around the corner! So please keep us in mind if your clients are considering any financing moves in their portfolios. “The summer night is like a perfection of thought.” – Wallace Stevens Commercial Tip Watch the CMBS Market. If you’ve been watching the

Commercial Tips 6-23-10

Head Coach — Thu, 24 Jun 2010 02:44:14 +0000

Just in case you weren’t paying attention last week, we have dramatically increased our ability to pay Yield Spread on your owner-user (conventional or SBA 504) transactions. We’re even able to help out a little on your investor transactions, too. For full details, get yourself over to www.ExcelsionBrokers.com/Earn-YSP now. There are some cool forms you can use with your clients, too. “Nearly all men can stand adversity, but if you want to test a man’s character, give him power.” – Abraham Lincoln Well, L.A. did it again. Kobe, Phil, and crew are the NBA Champions … again! And only one car was burned out in the process. I think that L.A. is growing up!! It was a heck of a Game 7 and

Commercial Tips 6-2-10

Head Coach — Wed, 02 Jun 2010 19:52:08 +0000

This week I have a request for all of you that comes from Faye Bao, a reader of this publication and a commercial mortgage broker. She is looking for a lender who can make loans to foreign investors (folks who are not US Citizens nor who carry a Green Card). Unfortunately, we couldn’t do it so I thought that I’d ask all of you if you have any lender leads who could help Faye. If you do, please go to our Forums and enter in a comment on the “Active Lenders” Forum. Here’s the link to get there: www.CommercialLoanCoach.com/free-forums. It’s the first Forum on the page. Over the years I’ve run into this issue a number of times and never found anyone who could effectively address this type of borrower. Hopefully, you have. “If the facts don’t fit the theory, change the facts.” – Albert Einstein It’s quiet out there in commercial lending land. More banks in the Pacific Northwest are going under because of bad construction loans. That and general “fear of lending” is still keeping a lid on a significant uptick in commercial lending. We are still able to do things in our specialty areas of SBA 504, small investment properties, and construction projects in default, but underwriting standards are high. Hang in there, though. It should get better through the summer. Commercial Tip What Cap Rate are you Using?

Commercial Tips 5-10-10

Head Coach — Tue, 11 May 2010 05:19:05 +0000

I think the folks at Walt Disney could learn a thing or two about roller coasters from the folks on Wall Street. What a week we had! Down 1,000 points, up 650 points (while still being down), down the next day. Now the International Masters of the Financial Universe have created yet another super-hyper-massive bailout with money that doesn’t exist. (That’s what central banks are doing these days … financial sleight of hand). Can any of you spell “inflation?” And I mean I-N-F-L-A-T-I-O-N! My history may be a little rusty, but didn’t Nero say something like “Give them Bread and Circuses” while Rome fell? Translate that to “Health Care and Pensions” today and you get my point. “I’m living so far beyond my income that we may almost be said to be living apart.” – e e cummings On the commercial real estate front we can rest somewhat more easily in that our transaction periods insulate us from such whipsaws in the equity markets (unless, of course, you own shares in a REIT). Rates actually benefit from these situations as investors flee to safety, bid up prices treasuries, and lower interest rates temporarily. Now all we need are more jobs and we will see a recovery in Retail and Office. “Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.” – Charles Dickens Commercial Financing Tip Highlight Experience. Lenders of all stripes love to work with experienced borrowers. But what constitutes “experience” in the eyes of a lender in today’s credit restricted world? Realistically, ten or more years of commercial real

Commercial Tips 5-5-10

Head Coach — Thu, 06 May 2010 00:53:51 +0000

Man, does Louisiana have it tough this century or what? First they get blown off of the beach by Katrina. Then they get mired in muck by BP. Tough stuff. I did some interesting statistics as a result of this situation, though. First, did you know that 3,000 off shore oil & gas platforms operate in the Gulf of Mexico alone? Also, the National Academy of Sciences reported in 2003 that over 60% (47 Million gallons) of crude oil released in North American waters comes from natural seepage and that only 1% comes from off

Commercial Tips 4-22-10

Head Coach — Fri, 23 Apr 2010 02:56:27 +0000

I’m surveying an office desperately in need of reorganization. You know that feeling, right? It’s: “I have GOT to make some sense out of this!” And then the phone rings, or someone comes to the door with an issue, or that REALLY important email drops into your inbox just as you’re reaching for the Brother P-tough to start labeling those files. I think this is the only time when I actually enjoy being interrupted! Today’s tip will deal with how to deal with The Big Mess in your office. A little off of

Commercial Tips 4-15-10

Head Coach — Thu, 15 Apr 2010 17:34:19 +0000

Sorry I haven’t graced your inbox with my pithy comments for the past few weeks. I’ve moved back to California just in time for rainy weather! (The joke is on me). Moving is a full time endeavor, let me tell you. On the other hand, I did have time for reflection while driving the car from KS to CA. I discovered that country music is actually the best thing to listen to while watching the country pass by. It has simple themes that reflect life in America that I found refreshing while watching the road

Commercial Tips 3-16-10

Head Coach — Wed, 17 Mar 2010 02:24:30 +0000

Beware the Ides of March … I think that’s what an oracle said to Julius Caesar, right? Well, happy Ides of March to you! The first quarter is almost done and we’re picking up steam heading into the last year of the first decade of the 21st century. If that doesn’t give your brain a twist, nothing will. College basketball is in full swing and all I can think about is the next Grand Slam in tennis. How’s that for oblivious? I’ve decided to wax eloquent on the topic of Bridge Loans

Commercial Tips 3-10-10

Head Coach — Wed, 10 Mar 2010 16:41:48 +0000

OK, so I sprang spring early. It’s been such a wintery winter here in Kansas City that the first few days of good weather (now giving over the major rainstorms) got me all excited! I’m sure that Old Man Winter won’t go so quietly into the night, but it sure was nice to put the winter coat away for a day or two. March also brings us College Basketball Madness. Not my favorite contest, but I’m in a very BIG college basketball town and it’s hard to avoid it here at the home of KU and

Commercial Tips 3-3-10

Head Coach — Wed, 03 Mar 2010 18:56:59 +0000

OK, I admit it. I’m an Olympics Junkie. As ashamed as I am to admit it, I even occasionally tuned in to the Curling competition. Not that I could understand the scoring in that most obscure of sports! All I knew was that it was the Olympics and I wanted to see Olympians. And how about that hockey game??? What a way to end the 16 days of competition. Too bad the Americans seemed to fade in week 2, but then we were generally not a major force in winter competition until recently.