Ways your lender should work “Beyond the Loan”
Ask a busy investor how things are going, and you will often hear them say with desperation in their voice, “I’m so busy! But that’s a good thing, right?” You can tell that they are starting to wonder if it is really as great as they’re telling themselves it is.
Well, good news. Lots of profitable and productive projects is a great thing. You were right. However, being overwhelmed by all that productivity is not necessarily a good thing. Did you know that your lender can help?
There are three ways that many real estate investors do not realize their lender can work with them when it comes to investing “beyond the loan.” Every lender is different and will certainly adhere to guidelines relevant to their practice. However, the important thing for borrowers and investors is that there may well be light at the end of the tunnel!
First, your lender may be aware of benefits unique to your projects or company.
For example, some borrowers may qualify for special lending programs or even services to optimize their investing results because of the physical location of either their investment properties or their businesses. Some foreign investors may be eligible for loan programs domestic investors are not, and vice versa.
Second, your lender may have a clearer idea of your ROI than you do.
Depending on your location, your investor status, the vehicle with which you plan to purchase the investment property, and your nationality, you might be in line for a much larger or much smaller return than you are expecting when you exit a deal. Understanding this element of your deal is part of the underwriting process, so your lender may be able to provide you with insights into future returns.
Third, your lender likely knows the law better than most experts.
Real estate is constantly moving. Lenders have to keep up with legislation to make sure they are able to accurately assess the value of potential loans and collateral. Many lenders will consult on specific investments, markets, and legislation if asked.
While you cannot assume that your lender will be able to go “beyond the loan” in all of these ways, you should investigate your options before making a final lender selection. The right lender can be far more for you than just a good interest rate and a low monthly payment.
Learn more about Universal Commercial Capital.