80555 Resource 78777 78860 1071 1105465911756 1215930939196 Controlled Commercial Financing and Preparing Pro Forma Operating Statements on Commercial Property How to Get Commercial Financing on a Newly Purchased Commercial Property <p>Your client buys a commercial property at a foreclosure sale and moves his own company into the building.&nbsp; The building is run down, so your client fixes it up very nicely.&nbsp; Then he wants to pull out his cash by refinancing the commercial building and obtaining a larger commercial mortgage loan.<br /><br />The commercial bank to whom you have taken his commercial mortgage loan request asks for a pro forma operating statement, but you have a problem.&nbsp; Because your client has owned the property for just four months, you have no operating expense history on the building.&nbsp; What do you do?<br /><br />The answer is to simply assume the commercial building is leased on a <span style="FONT-WEIGHT: bold; FONT-STYLE: italic">triple net</span> basis.&nbsp; Just assume the tenant pays all of the expenses, except for reserves and&nbsp; management.&nbsp; <br /><br />You can simply pull&nbsp; a figure out of the air and declare it to be the fair market <span style="FONT-WEIGHT: bold; FONT-STYLE: italic">triple net</span> rent for the property.&nbsp; (The appraiser hired by the bank will eventually determine if your guess was accurate.)&nbsp; Take off 5% for Vacancy and Collection Loss to arrive at the Effective Gross Income.&nbsp; Then deduct, say, 4% of the Effective Gross Income for management and another 3% for Reserves for Replacements.&nbsp; <br /><br style="FONT-STYLE: italic" /><span style="FONT-STYLE: italic">Voila!</span>&nbsp; You have just produced a Pro Forma Operating Statement on a commercial property with no operating expense history.&nbsp; Sneaky and cool, huh?<br /><br />To find 750 commercial mortgage lenders, simply apply to C-Loans.com.<br /></p> 9 application/xml false commercial construction lender commercial construction loan commercial financing commercial loan commercial mortgage commercial real estate loan mezzanine lender mezzanine loan preferred equity C-Loans Commercial Mortgage Lender Databank Run Your Commercial Loan Request by 750 Commercial Lenders in Just Four Minutes http://www.c-loans.com/onlineapp Mozilla/4.0 (compatible; MSIE 7.0; Windows NT 5.1; .NET CLR 1.1.4322; .NET CLR 2.0.50727) 127.0.0.1 127.0.0.1 johngaudio 216.87.92.57 false true false false true 198508 false false true false false false true 78777 blog blogsite/CLoans/web