Learn the language of lenders

WHAT IS THE PRIMARY FOCUS OF LENDER LANGUAGE?

The primary focus of the Lender Language program is to empower commercial real estate investors through insight and theory regarding the mindset, guidelines and hot buttons of commercial real estate lenders.

HOW DOES LENDER LANGUAGE HELP COMMERCIAL REAL ESTATE INVESTORS?

Establishing a foundation of knowledge through the Lender Language study course and staying current on the lending markets through a lender language web subscription will allow commercial real estate investors to develop and maintain a real world understanding and applicable working knowledge of the lending market. Investors should be able to quickly determine what type of finance terms are available for a specific commercial real estate opportunity.
 
This will not only save time but the value of the credibility you will establish with industry professionals and your investors/partners is immeasurable.

WHAT TYPES OF LOANS & LENDERS DOES LENDER LANGUAGE COVER?

LL offers theory, guidelines and detailed insight into the entire commercial real estate lender bucket. Recourse, non-recourse, permanent & bridge lenders are all discussed  in detail in this course.

WILL THE LENDER USE MY PROJECTED FINANCIAL FIGURES?

Typically a lender want to see historical figures as well as borrower projections. Historical financials will carry the most weight in underwriting. However, proformas are considered as well.

HOW LONG DOES IT TAKE TO CLOSE A LOAN?

A typical permanent loan should take between 45-60 days to close. A bridge loan can close in as little as 7-10 days. However, the norm is between 20–30 days.

WHY DID THE SELLER ASK ME FOR A PRE-QUALIFICATION LETTER?

A pre-qualification letter or “Prequal” letter is a term that bled over from the residential world and typically not applicable to the commercial properties because the property needs to service its own debt. A Suitability Letter is more appropriate for a commercial transaction.

IS MY PERSONAL CREDIT A FACTOR FOR A NON RECOURSE LENDER?

Yes, even though there s no personal guarantee, the lender will still consider the key principles personal credit score.

IF I OWN A SINGLE FAMILY RESIDENCE IN AN CORPORATION, IS IT A COMMERCIAL LOAN?

No, multi-family properties with 5 or more units are considered commercial from a lending standpoint.

HOW IS MY INTEREST RATE DETERMINED?

Interest rates are determined differently based on the lender. Agency lenders and conduits based there interest rates off of a certain index. Portfolio lenders typically base their rates off of an internal cost of funds.

WHAT DOES “LOAN-TO-VALUE” (LTV) MEAN?

This is a ratio used by lenders to determine how much they will lend on a particular property. It encompasses the ratio of the loan amount to the value of the property. For example, let’s say that an investor/borrower wants to purchase a property that is valued at $5,000,000. He/she pays $1,000,000 as a down payment, meaning this individual would be seeking a loan amount of $4,000,000. Thus our ratio of loan-to-value would be $4M/$5M, or 80%. Generally, a lender prefers to see an LTV no greater than 75%, but most will go higher if the quality of the property is exceptional and/or the borrower has a substantial net worth.

WHAT IS MEANT BY A “BASIS POINT” OR “BIP”?

When we are talking about financing, the term “point” essentially means percent. For example, one point on a one million-dollar loan is equal to $10,000, or 1% x $1,000,000

WHAT IS MEANT BY “RATE LOCK”?

When a rate is locked, the lender is being asked to guarantee interest rate of your loan, even though the index continue to fluctuate. Rate lock is when the lender negotiates the “Spread” or margin over the index by which the interest rate is determined.

Get Help Now

Contact Eric Today:
Lender Language Corp
estew@lenderlanguage.com 
125 East Merritt Island Cswy
Ste 299-211
Merritt Island, Fl 32952
888-996-5881 phone
800-296-5882 fax

A portion of all revenues goes to A Soldier's Child Foundation