Understanding Lending Coverage Ratios
January 11, 2024
We’ve all heard many of these terms before, but do you really understand a lender when they are telling your borrower that the 1.15 ratio is not in line? We have all heard these terms before, but do you really understand a lender when they…
The Time for Expertise is NOW
September 20, 2023
Partial ownerships purchase rule updates! (and SBA fees being waived) If you rely on SBA financing for your transaction closings, then by now you’ve most likely been the victim of the current lender confusion and credit tightening effects happening across the country. Over the last…
What’s most important to your “High net worth” client
October 10, 2022
Three SBA items you need to know to attract top buyers! Did you know that nowhere in the SBA SOP’s 509 pages does it demand a spouse to guaranty an SBA acquisition loan? Do you think this might matter to your high-net-worth client? You bet…
Double Whammie
August 15, 2022
With interest rates rising almost monthly these days, we are finding some buyers getting very nervous and even backing out of transactions. To add fuel to the fire, SBA just approved a spread increase for lenders (as of August 1st), which now allows them to…
Remembering Transactions Lost: What could have been done to save them?
June 15, 2022
Nothing hurts more than a transaction that’s just days away from closing, falling apart. Today I go through the most popular reasons we see deals die closer to the closing. Remember losing sleep over that one deal last year that you knew should have closed…
Tire Kickers and the Frustration They Bring: How to Avoid Wasting Weeks
April 8, 2022
Your newest listing is getting a lot of attention and the calls and contacts keep coming in. Now what? We typically see our market buyers jump on a great listing and within days you can easily become overwhelmed by the number of inquiries. Each of…
Working with high net buyers and their concerns
January 5, 2022
Although I have written many articles surrounding the high net worth individual, lending views have changed over the years. Today I’ll discuss the current market conditions for these potential buyers and it’s all good news. We start by reviewing the actual rule of eligibility/liquidity for…
Protecting Outside Investors When Using SBA Financing
February 11, 2020
Each year, a large percentage of our transactions will include one or more silent investors. These investors are typically willing to assist with the required down payment, but will always prefer to limit their exposure to just the funds being injected and nothing more. I…
Can Your Buyer Really Afford A Fixed Rate Loan?
November 14, 2019
Why fixed rates cost more Most borrowers have only previously financed a house or car and have no specific knowledge of the SBA process, and even less of the actual rules surrounding the loan in which they are applying for. Here is where the gray…
PLP vs GP: Understanding the Differences
January 10, 2019
Today I explain the true differences between the lender classifications PLP and GP and why at times it is to the benefit of your transaction to actually process a specific loan request GP. Let’s begin by deciphering the terms PLP and GP. Note that years…
Two Rules Every Borrower Should Know
July 12, 2018
It never ceases to amaze me when I explain a few very important SBA rules that no one seems to be aware of that can make all the difference in a deal. As I travel the country and speak with brokers in so many states,…
Seller Involvement Post Closing: How long can the seller stay?
April 24, 2018
I’ve touched on this topic in the past but continue to see it pop up when including SBA financing in many of our transactions. You might also be aware of the SOP (Standard Operating Procedures) rule stating “The seller may not remain as an officer,…