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Commercial Mortgages 101 Michael Reinhard

Commercial Mortgages 101 By Michael Reinhard

Commercial Mortgages 101 by Michael Reinhard


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Summary

For aspiring commercial real estate investors and mortgage brokers who are ready to take advantage of the booming housing market, this step-by-step guide explains how to secure the financing and mortgage terms you need to reap profitable rewards.

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Commercial Mortgages 101 Summary

Commercial Mortgages 101: Everything You Need to Know to Create a Winning Loan Request Package by Michael Reinhard

For those in pursuit of commercial real estate opportunities, learn the tools to be successful in this helpful guide by an expert in the industry.

Independent commercial real estate broker Michael Reinhard has been leveraging the financial benefits of our strong economy for years. In this practical and insightful guide, he offers advice to help others in their pursuit of commercial real estate endeavors.

By providing a thorough overview of commercial mortgage underwriting and credit analysis, Commercial Mortgages 101 teaches you how to:

  • think and speak like a commercial real estate lender;
  • quickly size and under write basic commercial real estate loans;
  • prepare personal cash flow statements;
  • read and interpret lenders' preliminary loan proposals';
  • create a Schedule of Real Estate Owned;
  • And prepare a persuasive and professional loan request package.

Credit and financing issues pose the greatest challenges to prospective borrowers attaining the money and mortgage terms they need. Whether you're a real estate investor or a mortgage broker trying to decide on the right form of ownership (LP, LLC, Co-tenancy, or others) or you need to calculate your true net worth and liquidity to ensure your loan is approved, Commercial Mortgages 101 is your start-to-finish guide to success.

About Michael Reinhard

MICHAEL REINHARD (Houston, TX) is an independent mortgage banker for Texas Commercial Mortgage. He has originated and underwritten over $300 million in commercial loans since 1995 covering apartments, retail centers, office buildings, industrial warehouses, and more.

Table of Contents

CONTENTS

Acknowlegments

Introduction

Chapter 1: An Introduction to Commercial Real Estate Loans

What Is a Commercial Mortgage?

Mortgage Defined

Commercial Defined

Types of Commercial Properties

Non-Income-Producing Properties

Income-Producing Properties

Single-Tenant Properties

Multitenant Properties

Types of Commercial Real Estate Lenders

Banks

Life Insurance Companies

Conduit Lenders

Agency Lenders

Credit Companies

Mortgage Bankers

Private Lenders

Commercial Mortgage Terms

Maturity Period

Amortization Period

Loan-to-Value Ratios

Interest Rates

Prepayment Penalty

Recourse vs. Nonrecourse Loans

Commercial Mortgage Underwriting

Sponsorship

Property Underwriting

Final Underwriting Analysis

Chapter 2: Preparing the Loan Request Package

Executive Summary

Purpose of Loan Request

Sources and Uses

Property Description and Location

Financial Summary

Borrower

Property Description

Location and Demographics

Property Economics

Financial Statements

Financial Analysis

Schedule of Income

Historical Cash Flow

Loan Analysis

Supporting Documents

Market and Submarket Data

Sponsorship

Chapter 3: Financial Strength and Creditworthiness

Net Worth and Liquidity

Assets

Non-Real Estate Assets

Real Estate Assets, Cash Equity, and Market Equity

Cost vs. Market Value

Pre-Funding Liquidity

Post-Funding Liquidity

Lender's Calculation of Net Worth and Pre-Funding and Post-Funding Liquidity

Credit Score and History

Five Adverse Conditions Unacceptable to a Commercial Lender

Personal Income and Cash Flow

Gross Income

Self-Employment Income

Net Cash Flow and Taxable Net Cash Flow from Rental Income

Cash Flow Statement

Banking and Credit References

Chapter 4: Real Estate Experience

Ownership and Management Experience

Ownership Experience

Management Experience

Chapter 5: Real Estate Assets

The REO Schedule

The REO Schedule and the Balance Sheet

Anatomy of an REO Schedule

Property Value Section

Property Name

Property Description

Property Address

Date of Acquisition

Original Cost of the Property

Name and Address of Lender

Loan Number

Ownership Percentage

Market Value of the Property

Balance of Mortgages

Total Equity

Net Ownership Equity

Cash Flow Section

Monthly Rental Income

Monthly Operating Expenses

Monthly Loan Payments

Monthly Cash Flow

Net Ownership Cash Flow

Chapter 6: Forms of Ownership

Borrowers and Borrowing Entities

Types of Borrowers and Borrowing Entities

Individual Ownership

Co-Tenancy and Joint Ownership

Partnerships

Limited Liability Companies

Corporations

Trusts

Index

Additional information

CIN0814415075G
9780814415078
0814415075
Commercial Mortgages 101: Everything You Need to Know to Create a Winning Loan Request Package by Michael Reinhard
Used - Good
Paperback
HarperCollins Focus
2018-03-26
240
N/A
Book picture is for illustrative purposes only, actual binding, cover or edition may vary.
This is a used book - there is no escaping the fact it has been read by someone else and it will show signs of wear and previous use. Overall we expect it to be in good condition, but if you are not entirely satisfied please get in touch with us

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