What do you really have to do to get a commercial loan approved and funded? Dragon Realty Capital is a direct lender. We take loan submissions from mortgage brokers, loan officers, and banking professionals. What we notice in this process is how FEW of these lending professionals seem to know what it takes to present a loan to a lender in a way that will actually get it funded!
Dragon will be sponsoring a series of commercial broker training and industry networking seminars in 2019. In support of that, we’re putting together a series of blog posts that previews some of the key elements of that training. We hope that you find the information useful in your practice or in understanding the commercial lending process.
The first installment involves the Executive Summary. Ironically, while it is the FIRST document (Alpha) that you send to a lender it is the LAST (Omega) document that you prepare before sending in a commercial loan request to a lender. From its name you should get that is “summarizes” the loan request. Before you can prepare an effective one, you need to do some work!
You’ll need to understand the history of the transaction (how did you get to the point of needing a loan?). What is the motivation for the request? What’s the timing or urgency to close? What kind of property is it? What is its Net Operating Income, who occupies it, where is it located, and what kind of shape is it in? What about the guarantors? Who are they, what kind of experience do they have, what’s their credit like, and how much money do they have in the bank? And there are even more things that go into a good Executive Summary.
We send our brokers a template for creating one on each submission that does a pretty good job of laying out the story. You can get one for free at any of our Loan Program pages under the Loan Programs tab here: www.DragonRealtyCapital.com. You can also get some good, FREE information on other aspects of commercial lending and marketing by Clicking Here.
In the next installment I’ll cover the first few questions that you should ask ANY borrower to see whether or not you’re wasting your time on a potential loan request.
Craig Higdon is the Chief Executive Officer of Dragon Realty Capital, a nationwide private money direct lender. More information can be found at www.DragonRealtyCapital.com.