Given the volatility of the debt markets, lenders evade predictability, and not all borrowers are treated equally. In fact most borrowers are experiencing lenders refusing to issue initial loan quotes, or withdrawing their loan commitments late in the transaction cycle, which can be devastating to the acquisition process.
Times of uncertainty can be a great time to be an investor. Minimizing the hurdles that can arise by selecting the right lender can be the difference between capitalizing on an opportunity and losing money on one. An institution that will be creative with their structured debt, and not try to force your deal into a box that doesn’t make sense for you is a valuable tool in itself. Have all of the required information when approaching a lender; the last three years of the operating entities financial statements, latest interim financial statements and prior years comparable statements, as well as an understanding of the lease and property information, are all important aspect to a lender. Make sure you go to a reputable lender, and don’t be afraid to shop outside of your local bank. There are several good non-bank lenders available, and many have unique structured debt products that are geared to suit the needs of an investor during these opportunistic times.
To discuss selecting the right lender, contact Mark Hinkins t.925.274.2439 or mark.hinkins@grubb-ellis.com
Times of uncertainty can be a great time to be an investor. Minimizing the hurdles that can arise by selecting the right lender can be the difference between capitalizing on an opportunity and losing money on one. An institution that will be creative with their structured debt, and not try to force your deal into a box that doesn’t make sense for you is a valuable tool in itself. Have all of the required information when approaching a lender; the last three years of the operating entities financial statements, latest interim financial statements and prior years comparable statements, as well as an understanding of the lease and property information, are all important aspect to a lender. Make sure you go to a reputable lender, and don’t be afraid to shop outside of your local bank. There are several good non-bank lenders available, and many have unique structured debt products that are geared to suit the needs of an investor during these opportunistic times.
To discuss selecting the right lender, contact Mark Hinkins t.925.274.2439 or mark.hinkins@grubb-ellis.com