In order to provide an accurate and dependable loan quote, we need to review a borrower's current and historical rent rolls and operating statements. Upon the client and us mutually agreeing that it's worth progressing to the next steps, we would review property photos, borrower information, market information, etc., as we progress toward arriving at a realistic loan quote.
The Knoch Group believes that providing a quality and dependable loan quote is different from simply reading the terms from a rate sheet, without first analyzing and underwriting a specific property and borrower. Achievable leverage, interest rate, recourse vs. non-recourse, impounds, pre-payment penalties, etc., all depend heavily on the following types of factors:
Property-
- Current and historical vacancy
- Current and historical revenues
- Tenant profile
- Actual rents vs. market rents
- Age of structure
- Local and regional real estate market
- Length of current ownership
- Regular capital expenditures vs. deferred maintenance
Borrower-
- Credit
- Net worth
- Liquidity
- Experience
- etc.
We believe that any banker or broker who claims to be able to provide a dependable loan quote prior to analyzing the situation will only achieve funding in accordance with that quote through compensating errors and sheer luck.
Andy Knoch
The Knoch Group - Commercial Real Estate
553 N. Pacific Coast Hwy, #542
Redondo Beach, CA 90277
310-374-1874 ph
310-872-5377 fax
310-528-1583 mobile
Andy@TheKnochGroup.com
www.TheKnochGroup.com
