What role does the borrower's track record and experience in managing commercial properties play in securing financing?

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Hi there,

Welcome to Loancater’s weekly newsletter. This is approximately a 4-minute read.

In today's newsletter, we’re going to go over a track record for real estate debt financing

We are going to go over…

1. What a track record means to different group of lenders

2. Why it matters

3. How you can bring in “grey hair” on your deals

Schedule a FREE strategy session with us here (link) or apply here (link) for a business loan.

Actionable Tips

Most lenders require a sponsor with a track record for their highest form of LTV on a commercial real estate loan.

You can invite a co sponsor to go in on a deal where you do the work and they play an advisory role.

This allows you to establish more credibility with your lenders. 

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✔ Clients Who Worked With Us In The Past

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⭐ Different Type Of Loans

Type of funding product available in the market (link)

What a track record means to different group of lenders

For banks & lenders where a lot of the underwriting has been systematized, the volume of transactions is a measurement of your experience. This gives the underwriters a grasp on how high they can go on the LTV (your leverage). A lot of these automatic loans are smaller in nature and when you go larger in size the track record carries more weight. When the loan sizes are larger a lot of the lending parameters will still need to be checked off but lenders become story oriented. They want to hear the story behind the strategy and the building before they issue any loan and your track record tells them if you're believable or not because if you have none they’ll mostly write you off as full of shit.

Why It Matters

Having a track record in anything gives you more credibility and weight. Having credibility allows the lender to believe your story more and hence be more likely to issue you credit. It’s also a form of preselection. People want to do business with people who already successfully exited and managed other real estate portfolios. Also, a lot of banking is still relationship based. When they see you took a loan out or done a deal with someone they know they are more likely to work with you.

How You Can Bring “Grey Hair” Into Your Deals

I brought over tons of guys to be advisors on projects for myself. Look at capitalgrowthpartners.org. Right now speaking I can get guys who come from the highest pedigree of finance and leverage their credibility to get lenders and financiers to extend their credit. The way you do this is by offering them a portion of the upside on a deal and using Linkedin to conduct your outreaches. I.E Hey John I have a real estate deal in CA for 10M. I would like for you to come onboard as a 10% equity partner where I do all the work but you provide me advice. Let me know.

How I Can Help You

If you like this newsletter and want to work with me, there are a few ways we can do so:

1. You can apply for a business loan here (link)

2. You can apply for credit repair by emailing [email protected] “I want credit repair”

3. You can apply for a free 30 minute strategy session for credit card processing & ACH  here (link)

Or,  you can reply to this email.

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