W. Reynolds Commercial Capital, Inc.'s Blog

  There's one number that sits at the center of almost every commercial real estate financing conversation. It determines how much your property is worth. It determines how much you can borrow. It determines whether your deal makes financial sense or not. That number is Net Operating Income — NOI. If you understand NOI, you can have an informed conversation with any commercial real estate lender, evaluate any commercial real estate deal, and make intelligent decisions about your property. If you don't understand it, you're operating on assumptions that may not match how lenders see your deal. Let me give you the complete picture. ...

  You've found the property. You've negotiated the price. You've gotten a term sheet from a lender. And now the lender orders an appraisal.   For many commercial real estate borrowers — particularly those coming from residential experience — the appraisal is an afterthought. You expect it to come back at or near the purchase price, the box gets checked, and the deal moves forward.   Commercial real estate appraisals don't always work that way. And when they don't — when the appraisal comes in below the purchase price or the refinance value the borrower was counting on — it can change or kill a deal.   Understanding how commercial appraisals work, what they measure, and how to prepare your property for the best possible result is genuinely valuable knowledge.   Who Performs Commercial Appraisals   Commercial real estate appraisals must be performed by a Certified General Appraiser — a state-licensed appraisal credential that is more advanced than the Certifi...

  Every commercial lender is trying to answer the same fundamental question: if I loan this money, will I get it back? But different lenders answer that question in completely different ways. Some look at your income. Some look at what you own. Some look at a combination. And some — the ones most people don't know about — look primarily at the quality of your customers. Understanding which type of lender evaluates which type of information is one of the most practical insights a business owner can have. It determines which door to knock on, which documentation to prepare, and how to frame your deal for maximum success. The Cash Flow Lender: "Show Me What You Earn" ...

  If you've spent any time trying to get a business loan, someone has probably told you to "build your business credit." It's good advice. But what does it actually mean, how does it work, and — critically — how does it interact with your personal credit when a lender is making a decision? The honest answer is more nuanced than most of what you'll read online. Let me give you the real picture. Two Credit Profiles, Two Different Systems Your personal credit profile is maintained by three major bureaus: Equifax, Experian, and TransUnion. The scores they generate — FICO scores, VantageScores — are familiar to most adults who have borrowed money. ...