Two Steps To Prepare To Start The Commercial Loan Process
From his home base in Cresskill, New Jersey, David Kushner caters to commercial real estate clients nationally as president of Paradigm Capital Group. Specializing in the area of mortgage bridge loans, David Kushner of Cresskill has facilitated the funding of many multi-million dollar mortgages through his firm. If you’re a business executive in the market for a commercial property loan, there are a few steps you can take to prepare yourself to do business with a commercial mortgage loan originator. The first step is to gather all of the pertinent paperwork. Your mortgage originator might request documents such as tax returns, rental schedules, leases, sales contracts, and asset and liability statements. Another important step to prepare for a commercial mortgage is getting an accurate assessment of property value. Commercial property can be valued either on a simple comparison basis or on a capitalization basis, which is taking the net rental income from your property and multiplying it by a capitalization (or cap) rate. The cap rate is calculated by looking at recent sales of similar properties and dividing the sale price by the property’s net income.










