Tham khảo tài liệu 'dearborn financing secrets of a millionaire real estate investor 2003_3', tài chính - ngân hàng, tài chính doanh nghiệp phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 32 FINANCING SECRETS OF A MILLIONAIRE REAL ESTATE INVESTOR the investor as well as the income and expenses of the particular collateral. In other words commercial lenders are more concerned with whether the property will generate enough income to pay the loan not whether the borrower has good credit although a borrower with poor credit will generally have a hard time getting any type of loan from an institutional lender . A commercial appraisal is required which is more detailed and expensive than a residential appraisal. A commercial loan will require the borrower to have a substantial reserve of cash to handle vacancies. Commercial loans also can be made for residential buildings of five units or more but there is a minimum loan amount required by each lender generally a 300 000 to 500 000 depending on the property values in your marketplace . Oddly enough multimillion dollar loans are often made without recourse to the borrower. In other words if the project fails the borrower often a corporate entity is not liable for the debt. The lender s sole recourse is to foreclose against the property. For this reason the lender is more concerned with the property than the borrower. Key Points Most lenders sell their loans to the secondary market. Loans come in three basic categories conforming nonconforming and government. The government does not lend money but rather it guarantees loans. Commercial lenders look to the property rather than the borrower. CHAPTER Working with Lenders Except for the con men borrowing money they shouldn t get and the widows who have to visit with the handsome young men in the trust department no sane person ever enjoyed visiting a bank. -Martin Meyer Now that you understand how loans and the mortgage market works you can begin to understand how to approach financing. In Chapter 3 we discussed a variety of loan programs that differ based on the lender the type of property and the borrower. We will now turn to loan types that are generally .
