Showing posts from August, 2017

Why your Commercial Real Estate loans don`t get funded

Lenders see hundreds of loan financing requests each month and apart from a referral from a trusted source, the documents you submit for financing are the only basis they have for deciding whether they are interested in providing financing to you. With so many opportunities, most lenders simply focus on finding reasons to say no, because in the lending business, protection of their capital in the number one priority. Any one or several of the reasons listed below may cause a lender to reject your loan application. Here are the most common reasons: Value inflation On many occasions, borrowers come to us and say they are buying a property for $X but it is appraised for $Y which is many times higher than the purchase price. We usually see this primarily with land development deals where the borrower wants to get a loan based on the appraised value which would allow them to purchase the land and finance the construction. They are essentially trying to get 100% financing. This is