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Commercial Mortgages

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Commercial Mortgages Powered By Docstoc
					Commercial Mortgages


Origination
Commercial Loan Originators
   Do you want to Originate Commercial
   Loans?

   Let’s review a few facts you may find
   exciting and interesting.
Industry Data
     Residential Mortgage Originators
     average income ranges between
     $40,000 and $80,000 per year.

     Commercial Mortgage Originators
     average income ranges between
     $125,000 and $250,000 per year.
Graduation
  On average, about 80% of all Mortgage
  Originators change fields within 2 years.

  Only about 10% of Residential
  Mortgage Originators or 2% of the total
  number graduate to become
  Commercial Mortgage Originators.
League of Their Own

   Commercial Mortgage Originators are
   truly in a “League-Of-Their-Own”.

   Most Originators fail because they do
   not invest the Time and Effort required
   to become an Expert in Their Field!
Quick Buck or Investment

  Do you want to make a “Quick-Buck”
  and solve today’s problems or make an
  Investment in Yourself that provides a
  lifetime of income and benefits options
  not available to the average American?
Turnaround Time
  Residential Mortgage Originators can
  expect to start receiving Commission
  generated income from 3-6 months.

  Commercial Mortgage Originators can
  expect to start receiving Commission
  generated income from 6-12 months.
Elements to a Successful Loan


   What are the 3 Key ingredients Lender’s
   require in order to review a Commercial
   Loan Application?
3 Key Ingredients


        Assets
        Credibility
        Experience
Assets



   Business Portfolio
   Personal Financial Statement
Business Portfolio
      Account Receivable
      Bonds
      Cash
      Inventory
      Liabilities
      Loans & Mortgages
      Real Estate
      Stock (Public & Private)
Personal Financial Statement
   Art Collections   Loans & Notes
   Bonds             Pension/Retirement
   Cash              Real Estate
   Disability/SSI    Salary
   Inheritance       Settlements
   Jewelry           Stock
   K-1 Income        Trust Funds
Credibility


         Credit Scores
         Persona
         Public Opinion
Credit Scores
   FICO Scores are a major component in
   the Lender’s decision making process.

   Timely payment of creditor obligations
   improves FICO Scores sending a
   positive message to any potential
   creditor.
Persona

  Borrower Persona or overall Confidence
  and Charisma very often tips the scale
  in their favor when there are marginal
  variations from Lender Underwriting
  Guidelines and Parameters.
Public Opinion

  Positive Business References can provide
  an additional level of comfort to the
  Lender during the Underwriting process.

  Lender’s are motivated to do business
  with you when other Businesses have a
  positive relationship.
Experience


       Background
       Education
       Field Experience
Background


  Borrower Group has Industry Specific
  Business experience.
Education


  Borrower Group meets or exceeds the
  required Business and Industry Specific
  Training requirements.
Field Experience


  Borrower Group has extensive Industry
  Specific Work experience.
Documentation


  What are the Documents a Commercial
  Lender requires to determine initial Loan
  Feasibility?
Preliminary Review


  1003
  Tri-Merge Credit Report
  Loan Summary
Preliminary Approval
   Property/Business Appraisal
   Personal Financial Statement
   Principal’s Tax Forms
   Business Operating Statement
   Schedule of Assets
   Business Tax Forms
   Entity Legal Papers
Lender Ratios


    Equity
    FICO Scores
    LTV
Equity


   Borrower’s Investment may be a
   combination of Cash Down Payment
   and Real Estate Equity
FICO Scores

  Borrower’s Credit Score is the average
  of three national Credit Management
  companies, Equifax, Experian and
  Transunion or CBC Innovis.
Loan To Value


   The Loan to Value Ratio is applied to
   determine Lender exposure.
Loan Types


       Bank Loans
       SBA Loans
       Asset-Based
Acceptable Ranges


  Cash or Real Estate Equity 10% or More
  FICO Scores 600 and above
  Loan to Value Ratio 90% or less
Commercial Bank Loans
  Banks will review Loan Requests with
  the following attributes:

  25% or more Equity
  700 or Higher FICO Scores
  70% or Lower LTV
SBA Loans

  The SBA will issue a Guarantee to
  participating Lenders for Loans that fall
  within the following parameters:

  10-25% Equity
  FICO Scores over 600
  70-90% LTV
Asset Based Loans
   Hard Money Lenders will review Loan
   Requests meeting these parameters:

   Up to 20% Equity
   FICO Scores under 600
   40-75% LTV
Commercial Loan Rates


  Bank Loans-Prime plus 1-3%
  SBA Loans-Prime plus 3-5%
  Asset Based-Prime plus 5-10%
Additional Criteria

  Once a Loan is Approved for Board
  Review, the following criteria is required
  to determine project feasibility:

  Business Portfolio
  Personal Financial Statement
  Concept Integrity
Conclusion
   So now you know that very few take
   advantage of the opportunity before you
   today. You also know that the learning process
   in just the beginning.

   Are you ready to put in the Time and Effort to
   get started building your future? Your time is
   one of the valuable commodities you have and
   the Clock is Ticking!
Contact Information:

Blue Chip Group
(412) 580-7797

Remember, the Clock is
Ticking!

				
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