Difference In Commercial Submission - NextGEN Lenders vs. Conventional Lenders

For those of you new to the commercial industry, don't let the lack of knowledge or larger set of paperwork required for commercial submissions. Incorporating NextGEN Lenders (aka Hard Money) can help streamline your learning process and obtain quicker commissions since funding typically occur within 10-15 days vs. 60+ days for conventional lenders.

In Order to expedite your submission from origination to funding should include a well organized Executive summary. An Executive Summary is a concise, but thorough overview that would include the following (shouldn't exceed two pages):

• Property Description - subject property address and APN, general overview about the property type, tenants or if it is owner-user, appraised value/estimated value, number of units, number of parking spaces, square footage and lot size
• Income & Expenses - current monthly income, current monthly expense, current monthly net operating income and a general explanation of value if valuation needs to be focused on potential (future) gross income or recent sales.
• Loan Amount Requested
• Loan Purpose/Story - you should come clean on this and bring all of the "skeletons from within the closet out of the closet" since the majority of the hard money lenders invest their own money and typically will personally walk the property prior to funding. Most undisclosed issues usually have a way of exposing themselves so come clean upfront to help build more trust and confidence with the lender
• Exit Strategy - loan term requested and how does the borrower intend to get out of the short-term loan (i.e. refinance? selling?)
• Any additional information to be considered for underwriting purposes - NextGEN lenders (aka. Hard Money) have the ability to be flexible with their underwriting as well as having the creativety crossing multiple properties into a single loan.

You will also want to include these other items with your detailed Executive Summary:

• 1003 or Commercial Application - fully completed
• Color photos of the subject property or an appraisal if you have one. Many NextGEN lenders are able to quickly determine valuation and have the ability to fund transactions without an appraisal.
• Operating Income/Rent roll

NextGEN Lenders should be able to get a letter of intent (LOI) within 48 hours and fund within 10 days or less. Although the pricing may be higher, if your borrower has a weak balance sheet, needs additional capital to help strenghten the financials to better position themselves for better conventional financing, then short-term bridge financing may be the best option for your borrower.