As a commercial real estate entrepreneur, you understand the importance of procuring a loan quickly. An opportunity can easily slip away–you need to act fast! But before applying for a bridge loan, make sure to consider the following:
- Did you think it through?
Before approaching a private lender, you must consider all aspects of your company’s loan request. Make sure to have all your information organized correctly, and know the limits associated with your project. Be sure to determine the exact timeframe, the dynamics at play, and the level of urgency this project has, as well as any other factors your lender would need to know in order to fund your loan.
- Did you consolidate all the relevant information?
Make sure to gather all relevant documentation beforehand and ensure that you have a handle on all the details and information about your project and/or asset. Private lenders take a variety of factors into account when vetting a potential borrower, such as the LTV and the property’s zoning. The more details that are taken care of and clarified beforehand, the faster the bridge lending process can take.
- Do you have a plan?
Presenting a proper, well-developed business plan is crucial to securing a private loan. The more comprehensive and thought-out the plan, is the more likely your company’s loan will get approved. Remember, having a thought-out exit strategy is also vital in getting your loan approved by a private lender.
- Did you consider all the costs involved?
When considering the costs of your opportunity or project, remember to make sure you included in all costs and factor in contingency. That way, you are aware of the full cost of the loan before you approach the lender.
- Do you have all necessary financial statements ready?
When vetting a client for a loan approval, your lender may ask you for documents detailing your finances, such as tax returns and income and expense projections. Making sure you have all the necessary documents can fast-track the process considerably.
Reach out to the TBG Funding team for all of your private lending needs.
Call us at 718-705-9300.