If your commercial loan is maturing and your bank will not renew the loan or is asking for a large paydown, the issue may not be the property. It may be your tax returns. This is happening to a lot of strong commercial borrowers right now. When banks calculate debt service coverage using tax returns, […]

I am seeing more apartment owners declined by their local bank when trying to refinance, not because the property doesn’t cash flow, but because their tax returns don’t show enough income to debt service the loan. Many investors use depreciation and write-offs properly. On paper, income looks low. To a traditional bank that underwrites to […]

https://flic.kr/p/J39w9x If rising labor costs and operating expenses have reduced your profitability, you may have been surprised when the bank turned down your loan even though your business is performing well. Your business has strong revenue.You have good credit.You have liquidity for the down payment and reserves.But the bank still turned you down. This is […]