So let’s talk about pictures and commercial loans. One of the key items overlooked in most commercial financing requests is pictures.

Invest in or keep your commercial real estate, but adjust your lease rates to keep your tenants intact. I’ve written a past article on how even in a declining value market, income-producing real estate protects your capital better than most other investment vehicles.

How is your mental game? Are you using real numbers in your commercial property analysis? Investors also often forget to adjust income for replacement reserves, leasing commissions on expiring leases, and use realistic management expenses.

Who Controls The Third Party Reports? In light of recent “events” in the mortgage markets, it comes as no surprise that lenders are changing how they handle third party reports. Eventually, most lenders followed suit.

Depository Institutions which include Banks, S&L’s, Credit Unions, and Mutual Savings Banks. They prefer shorter term financing such as construction and bridge loans with adjustable or short term fixed periods and are very borrower oriented in their underwriting.