This is a function of a couple things.  For existing income properties, the loan amount is dependent primarily upon how much money is left over each month once all of the operating expenses are paid, the Net Operating Income.  We ask for information about the property you wish to finance:  It's type, lease summary or rent roll, physical description, square footage, lot size, and its condition.  From this information we get a pretty good idea of the maximum loan the property will support.

For land, it's usually a function of the "as is" value or the value once the property is entitled.  

For construction projects, you need to be concerned with both the end value of the project and the total costs.  For institutional loans, the guarantors' credit, liquidity, and experience also come into play.  

Excelsion can assist you in determining your maximum loan depending upon the project and we can help you through different scenarios by asking a few simple questions.  Based on typical lender guidelines, we'll get you a good idea of what kind of terms and loan program from which you can expect to benefit most.

This is where the rubber meets the road and you save the most time and money.  In commercial lending we focus on the property, but don't forget the guarantor.  We assemble documents related to the property's location, structure, value, and use.  Then we assemble information on the ownership entity, the guarantors, and the transaction (such as the purchase contract, escrow, title).  For construction loans, the list includes even more items. 

Finally, the entire package is submitted to a pre-screened lender for underwriting.  Thus far, you've committed no funds for third party reports or Good Faith deposits ... 

If the lender agrees with our analysis, he typically issues a Letter of Interest or "LOI."  Most institutional lenders will pre-underwrite your loan before they order appraisals and other reports.  This is basically your "go ahead" and is somewhat equivalent to a residential "pre-approval."  As indicated above, it's also usually done for free.  Once you receive your LOI, you sign it and send it in with a check that covers the cost of the appraisal, environmental Phase 1, structural report, or whatever the lender indicates is necessary to fully fund your loan.  That check is called the "Good Faith Deposit" and it lets the lender know that you're serious about proceeding.

Once the third party reports come back, assuming there were no surprises, the lender typically does a final review of the file, sometimes called "loan committee."  Once the loan passes this stage, the loan documents are created.  At this point most borrowers request a copy of the documents for review by counsel to clean up any inconsistencies.  Once those items are taken care of, the loan documents are signed, returned to the lender, and funds are sent to escrow.