This spreadsheet/training manual is for pre underwriting your commercial loan requests so you can determine if it is a viable transaction or not.
Word from President of Commercial Finance Advisors, Jeff Rauth:
Of all the various products we offer for commercial mortgage brokers, this is the most practical and most important tool we have. This is the best spreadsheet we’ve ever seen/used for pre underwriting/qualifying commercial mortgages. We use this exact spreadsheet on a daily basis on all of our deals. If you don’t currently have a tool like this you need to get one. It will save you a ton of time! As you will see below, it also comes with a comprehensive e manual on how to use it as well.
This spread sheet will enable you to fully pre screen your loan requests, in the exact same way that loan officers do at banks – Giving you CONFIDENCE that the loan requests you’re working on have a great chance of closing. If you are originating loans now without some type of pre screening tool you are doing yourself a huge disservice.
Properly pre screening loans is the smartest thing you can do as a loan originator- you will save yourself a tremendous amount of time by NOT working on “unfundable” loans. By using this spreadsheet you will avoid the most common mistake brokers make – working on deals that have ZERO chance of closing from the start.
Think about this for a second. Filling out this spreadsheet will take you maybe 30 minutes to an hour. By the time you have it complete, you will know if the loan request meets virtually all underwriting criteria. Meaning you will know if its is a real deal and has a real chance of closing. OR you can work on your loan request like most brokers, ie you gather up a partial package and start submitting the requests to banks before its pre qualified. Not only will you waste weeks or months of your own time, but you will waste bank loan officers time and thereby ruin your reputation with them by submitting weak deals. Do it right! Pre underwrite your deals on the front end like a pro and submit them with confidence that you have a real loan request that is doable.
In addition, when you send your initial package to a loan officer, include this spreadsheet (filled out). You will impress them and make their job a lot easier as they will be able to get a solid idea how good of a fit the deal is in a matter of minutes. For example, when we submit loans we normally just send a few paragraphs summarizing the deal along with this spreadsheet.
Mechanics – This Spreadsheet Calculates Global Income and More
This spreadsheet layouts the overall picture of the borrowers situation. Though it’s much to comprehensive to list all of it here. We invite you to look at the examples of the individual spreadsheet pages below (Note this spreadsheet comes with a comprehensive 15 page training manual so you know how to use it). Here’s the major criteria:
- Businesses cash flow for the last three years and year to date. Including easy to use “Add Backs” so you can get to the real level of cash flow of the business, referred to as “total cash available for debt service”. And this of course includes the calculation for DSCR’s.
- It establishes the trends of the businesses, in terms of its historical gross sales and total historical cash available for debt service. Trends are critical in all areas of commercial lending.
- It can calculate up to 4 affiliated businesses in a easy to use manor and factors all of their “Add Backs” creating a snap shot of the borrowers TOTAL available cash for debt service on ALL of their businesses, personal expenses and more. This is commonly referred to as Global Income. This calculation is perhaps the most complicated in all of commercial underwriting, but by using this spreadsheet it makes it simple.
- It calculates the borrowers personal expenses (AKA personal needs). Keep in mind most banks double the borrowers monthly personal expenses that show up on their personal credit report and net this amount out of their businesses total cash available for debt service… Not calculating personal needs properly is a common mistake and a major deal killer.
- Factors in other criteria such as complete break down of the total projects costs, loan to value, collateral loan to value, automatically calculates typical closing costs for both 504 and 7s loans, business balance sheet, personal financial statement, personal needs, etc. Please see the below images of the actual main pages to get a better idea.
You will get 1. the actual Pre Qualification Spreadsheet 2. as well as a second completely filled out spreadsheet with notes for your reference and 3. a comprehensive manual that discusses how to use the spreadsheet in great detail. This way you will know how to use it.
Our software program will automatically email you the spreadsheet upon purchase. So no waiting or additional shipping costs. Spreadsheets come in Excel, the eBooklet comes in a PDF. Get it now. $75.
See two pages of the Manual below. This is 2 pages of 16. We go through each individual page of the 13 spread sheet and give instructions and comments so you really know how to use it.
See screen shots of the actual spreadsheet below. This is 3 pages of the 13.