Commercial mortgage borrowers often ask us how lenders determine the rates that they offer on commercial mortgage loans. There are many criteria that lenders use when determining rates, but lenders will assess the relative risk of a loan when reviewing a loan application. The lower the risk, the lower the rate. The higher the risk, the higher the rate. It is important to understand what factors are important to lenders and underwriters.- Borrower Qualifications. Lenders will analyze a borrower or guarantor’s net worth, liquidity, cash flow, credit history and real estate experience in determining overall risk. Lenders like to see borrowers with a good history owning and managing similar properties. They want to see sufficient cash reserves to cover unexpected issues that might arise and they expect to see that borrowers have a good history of paying their bills in a timely matter.- Property location and market. Good quality properties in large metropolitan and suburban areas are considered lower risk than inferior properties and properties in small rural locations. Good properties in good locations are easier to rent in the case where tenants move out or situations where the remaining lease terms are short. For example, if a property in a poor location becomes vacant, it will require a significant amount of renovation to attract new tenants.- Tenant mix. Multi-tenanted properties with good quality tenants and long-term leases are very desirable when financing office and retail properties. Lenders do not like vacancy, high turnover rates and properties in a constant state of flux. Lenders like to see well run properties that attract and maintain long term tenants- Stabilized occupancy. Lenders look for properties that have enjoyed high occupancy levels with minimal disruption for the last 2 to 3 years. Properties with vacancies and fluctuating rental histories are considered higher risk. Lenders will ask for operating statements for the past 2-3 years. They expect to see steady occupancy and increasing net income. Properties that fluctuate wildly with income and expenses will generate lots of questions.- Property Condition. Properties in good condition with little deferred maintenance are considered lower risk than properties in need of major capital improvements. Properties in poor condition will usually require that the lender set aside or escrow funds for repairs and maintenance. Properties in poor condition tend to perform worse than well maintained properties.- Leverage. Loan-to-Value is very important in determining risk. A 50% LTV(loan to value) loan will price better than a loan at 80% LTV. If a property experiences difficulty, there is much more room for error on low leverage loans.-Debt Coverage. This refers to the excess in net operating income over annual mortgage payments. The more excess cash flow a property produces, the lower the risk. Excess cash flow can be used to mitigate against turnover, repairs or other cash drain.At the end of the day, lenders do not want to expose their lending institutions to undue risk. A borrower should be prepared to address all of these issues to the satisfaction of the lender at application in order to increase the chances of getting approved for a loan at the lowest rate possible.Once you are qualified for a commercial mortgage loan, it is helpful to get an idea of your proposed monthly payment in advance. A commercial mortgage calculator is a very helpful and useful tool. Whether you are purchasing a new commercial building, or refinancing an existing commercial loan, it is helpful to know how much of a loan you can afford at today’s rates. A commercial mortgage calculator will calculate your monthly payment for you. You will be asked to enter the loan amount, number of years, and interest rate. The mortgage calculator will calculate your monthly payment.
Several years into the residential real estate crisis, another one looms just around the corner: Commercial Real Estate. Trillions of dollars worth of commercial mortgage loans are about to reset. Problem: Decreasing property values has prevented many commercial property owners from refinancing. But there is some good news.According to a October 30th 2009 press release posted on the FDIC.Gov website, the “Prudent CRE Loan Workout Guidance” was adopted by various federal government agencies.The FDIC press release stated: “This policy statement stresses that performing loans, including those that have been renewed or restructured on reasonable modified terms, made to creditworthy borrowers will not be subject to adverse classification solely because the value of the underlying collateral declined.”This is good news to commercial property owners who are still creditworthy, but can’t refinance due to current economic conditions. The Prudent Commercial Real Estate Loan Workout policy gives financial lending institutions the tools needed to be proactive in preventing loan defaults now and down the road.The new Prudent Workout guidelines also stated factors that a bank would consider during a loan workout: “The borrower’s ability to repay the loan, the borrower’s willingness and capacity to repay the loan under reasonable terms and the cash flow potential of the underlying collateral or business.”Since a good number of commercial properties, such as apartment buildings have the cash flow but can’t refinance and the owners have been paying the mortgage loan on time, they would make good candidates for a commercial loan workout.Banks, facing a potential onslaught of loan defaults are more willing to help borrowers by performing commercial loan workouts. Commercial loan workouts are special arrangements lenders make with delinquent borrowers to avoid going into foreclosure down the road. Workouts can consist of making payment arrangements, lowering the interest rate, extending the maturity date or even lowering the principal balance. The whole process usually takes between 30 to 60 days.An important thing to remember when seeking a commercial loan workout is whether or not its in the bank’s or lender’s best interest to approve a commercial loan workout or permit foreclosure. A key factor is the overall financial standing of the delinquent property owner. Does the owner have or will have enough cash flow to repay the loan? This and many other factors will determine if a commercial loan workout is the best solution.Banks don’t want the headache of having a non-performing asset on their books. Having a large number of non-performing loans on their books may gain the interest of government regulators who oversee the banking industry. Even the regulators have updated their guidelines to help commercial real estate owners facing foreclosure.
Here is some good health insurance help for people who want to apply for a health insurance policy, but do not have any knowledge about health insurance. However, before discussing in detail about health insurance plans, let us observe why health insurance is important.A need for health insurance plans has arisen due to rising medical costs. It is impossible for individuals to bear all expenses on their own during certain situations when unplanned health expenses creep into their budget. Therefore, it is necessary for people to opt for ideal health insurance plans.Types Of Health Insurance Plans:When individuals approach any health agent for health insurance help, insurance agents suggest four types of policies to them. They are as follows:Major medical plan:Major medical plans are those plans in which individuals need to pay deductibles to health coverage companies to obtain benefits. Deductibles are nothing but a part of the amount, which people have to pay while applying for a policy. Later, health insurance firms pay about 80% of medical bills and insurers have to pay the remaining 20% of billed amounts.Buyers may select any doctors to get medical services and pay fees to these doctors directly. However, they need to obtain a bill and furnish it to the insurance companies, who in turn reimburse 80% of the bill amount to the insured. This type of health insurance plan is a traditional health plan.HMO plan:An HMO (Health Maintenance Organization) is a type of health policy that focuses mainly on life long health care of the insured. This plan is more affordable than the major medical plan. People need to select their doctors from a list of doctors furnished by insurance companies. These doctors provide medical services to them. If required, they also co-ordinate with other specialists and hospitals, to provide the best available health service.As a result, most people across the US prefer this type of health plan.PPO health plan:PPO (Preferred Provider Organization) is similar to an HMO plan. Health insurers refer in-network doctors and insured people refer their own out-network doctors. Here, people may choose in-network or out-network doctors as per their wish.However, if people choose out-network doctors they will have to shell out a huge amount as fee because in-network doctors charge a reasonable amount. Whether insured people choose in-network or out-network doctors, health companies pay only 80 % of the medical bill amount to insured people.POS Health Plan:POS (Point of service) health plan has properties of both PPO plan as well as of HMO plan. Here, people need to select the doctors referred by insurance companies. However, people may then seek treatment from out-network doctors after informing and taking permission from their in-network doctors. This plan is slightly more expensive than other health plans.Thus, refer to this health insurance help and choose the best health plan to cover the medical bills so that the unexpected cost does not hamper the monthly budget.
Posted in Uncategorized
Tagged Acne, Anti Aging, Beauty, Cosmetic Surgery, Diabetes, Drug Abuse, Health and Fitness, Massage, Meditation, nutrition, Personal Training, Popular Diets, Skin Care, Spa and Wellness, Speech Pathology, Weight Loss, Yoga
Everyone has an opinion on what makes an automotive radio commercial “effective”. Some will swear that having a loud announcer shouting at the top of his lungs (to the point of blowing out his voice, or having a stroke) is the only way to go. Others will take the more subtle approach of “honesty and integrity” with a low key announcer who wounds like a grandfather ready to pass around a bowl of Werther’s Originals after he tells you about the low APR financing for 3 years. Still, some others will go for the varied approach, of humor, honesty and all out over the top loud mouth announcers.At the end of the day what is the most effective approach for an automotive radio commercial? It really needs to show the feel of the dealership.Quite honestly, I absolutely detest the sound of an announcer screaming sales figures over a pounding anvil, but guess what – for countless dealerships that deal in high volume and a circus environment every weekend see great success with this approach when advertising on a very heavy and consistent level.If a dealership is smaller, more hands on and is not packed with clowns, inflatable jump pits and sales people running around like rabid chickens the feel of the commercial should not be crazy and over the top either. The laid back, trust feel is what needs to be reflected in that automotive radio commercial. The point I’m getting at is: Your automotive radio commercial needs to show what and who you are.Consumers looking to buy a car have their B.S. meters on full blast, the second they get a whiff of something they think doesn’t smell right, you can lose them. So keep your radio advertising reflective of the dealership this means:
Make the commercials sound like the dealership. If you are a party, make the commercials sound like a party. If your shop has more of a coffee shop feel going, lay off the crazy gimmicks and keep it more real.
Know and accept that you won’t appeal to everyone. There is an audience that will respond to each of these approaches. One will relate to you and your approach. When they come through your door – Treat these people with care, because they naturally gravitated to you in the first place.
Don’t do what your competition is doing. If there already is a big screaming car guy in town, don’t be that guy. You can still be lively and fun, but don’t be the screaming guy. Same is true of any other angle. Don’t try to imitate the competition, it will only help them and hurt you. People will think your ads are for them and not you.
Posted in Uncategorized
Tagged android automotive, automotive, automotive careers, automotive engineering, automotive engineers, automotive journalism, automotive lifestyle, automotive mechanic, automotive paint, automotive research, automotive spice, automotive supply chain, automotive technician, automotive value chain, mm automotive, mullen automotive, mullen automotive news