The secret of why some commercial mortgages get approved easily and others die a swift and painful death is…well…no secret. It’s simple math. And if you understand what does into the equation then you are going to have a much better time getting your requests approved.
Stephen A. Sobin, president & founder of Select Commercial Funding LLC, has more than 30 years of of commercial mortgage lending experience. Mr. Sobin says,
Banks and other conventional lenders (as opposed to hard money lenders or bridge lenders) are driven by a commercial property’s ability to generate cash flow and adequately service the anticipated mortgage payments. Understanding the math behind the underwriting will mean the difference between an approval and a rejection.
You can read more about how commercial mortgages are figured by reading his easy to understand article here.
A commercial property inspector will be able to help you discover underlying risks that may be hidden in potential properties in which you may invest. Call Allison Property Inspections with your questions about our detailed process for inspecting commercial, industrial, retail or multi-family properties in Los Angeles, Riverside or Orange Counties.