Investment-Money-Loan: Real Estate Finance

Commercial Real Estate Underwriting Guidelines Before you decide to make any real estate investment decision, you should know the basic factors that can be very helpful to you like net operating income, vacancy factor, Cap rate, down payment, loan to value, debt coverage ratio, operating ratio, and break-even. All lending institutions make real estate loans according to a specific formula which determines the credit worthiness of the client. SBA Loan Procedure, policy and underwriting Guide lines This loan program is suitable for a owner-occupied investor who wants to purchase a building for his business use. At least 51% of square feet of building area must be used for his business use and the remainder can be rent to another tenant. Under this loan program you can purchase a building with 10% down payment up to $3,000,000 at a very good rate for 25 years term. By reading this material you can become familiar with the different guidelines: Personal guarantee, pre-payment penalty, cash flow, loan term, loan to value, debt coverage ratio, collateral, interest rate, down payment, and business plan.