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Commercial Real Estate Loan
Requirements- Part 2
Based on a WomenforWealth.com interview with Ann Ethridge-Painter
by Kirsten Lee
Ann Ethridge-Painter, CEO of the Apartment Loan Store, recently joined
the WomenforWealth.com community for a power-packed Tele-Seminar. Ann
explained in detail the process involved in putting together commercial real
estate loans. Her experience and frank communication demystified the
process and inspired veterans and newbie investors alike. This article
is continued from
Commercial Real Estate Loan Requirements-Part 1.
Sometimes you really need to dig to uncover information about a piece of
commercial real estate. Ann finds everyone from realtors to city council
members to be valuable sources of information. "For me, when somebody
tells me it's not going to happen, I say, 'Okay. Watch.' I just keep
going in and getting numbers and numbers and numbers." Ann says
everyone involved acts as the greater team, working to put together a great
deal for you, the buyer.
After painting a true picture of the actual commercial real estate
property by getting the income and expense numbers, Ann looks at the
strength of the borrower. She looks at the vitals of the weakest member in
the case of a partnership. Ann shared an actual example in which the
numbers painted a weak picture. T hrough communication, she transformed a
stone wall into a stepping stone. "Again, we're going to tell a story. It's
all about a story. I can go back to the credit manager and say, 'Can I
get a waiver on this?' And under the right circumstances, I can."
Information gathering and pre-approval forms the foundation for the
process. Once the paperwork is on the table, the loan rate gets locked in
and the process truly takes off.
"The appraisal and the field inspection of the commercial real estate are
ordered within 48 hours," Ann explains. "The appraisal and building
inspection are both completed within the next three to four weeks. Then the
loan goes to underwriting and it's in underwriting for a week. Then, the
final approval takes one to two days. Then the docs are drawn that takes one
to two days. The documentation is received by the title company within a
day. Sometimes, recording takes a day. The final tally? If
all the paperwork is in we're looking to 45 to 60 days." This may seem
like an eternity to someone who is used to the residential purchasing
process, but it is truly in the bank's interest as well as the buyer's
interest to double-check all information.
Ann showed us how commercial real estate investment is just as accessible
as single-family home investment. Armed with knowledge and a strong team,
including your agent and broker, you can confidently move forward.
Want to learn more about the difference between
residential lending and commercial lending practices? Or how to find a
broker to work with? Check out our interview with Ann Ethridge-Painter
on CD and MP3: How to Build Wealth with the
Bank's Money to learn more.
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