term sheets - Return to C-Loans Home Page term sheets - top building image term sheets - Return to Home Page
term sheets - Web Site Terms of Use
term sheets - Contact Us
term sheets - Referral Fees term sheets - Cool Mortgage Broker Stuff term sheets - Lender Stuff term sheets - Borrower Stuff
term sheets - main building image term sheets - Search for Commercial Lenders -- FREE!
term sheets - Join as a Lender
term sheets -

 

Term Sheets

Commercial real estate appraisals can be very expensive. A borrower can easily pay $2,500 to $5,000 for an appraisal to obtain a commercial real estate loan. And then there's the toxic reports. Yikes! That's another $1,800 to $3,000. To make matters worse, there is no guarantee that the lender is even going to approve the loan.

You can easily see a borrower saying, "I will only pay for the third party reports once the deal is approved." But the lender would only respond, "I can't approve the deal until I get the results of the thrid party reports." It's a Catch-22 situation. The borrower and the lender would be at an impasse.

So how do lenders and borrower bridge this gap? It is customary in commercial mortgage finance for the lender to first issue a term sheet before asking the borrower to pay for any third party reports.

A term sheet - also known as a conditional commitment letter, a proposal letter or a good faith letter - is a written expression of interest by a lender in making a commercial real estate loan and a good faith estimate of the eventual terms.

A term sheet is not a commitment letter. It is not legally binding on the lender, but in practice it is a very positive and encouraging statement. If your borrower receives a term sheet, it generally means that his loan is going to be approved, assuming the property appraises for enough money and the toxic report comes back clear.

You, as a borrower, should never agree to pay for any third party reports until your commercial lender has issued a term sheet.

If money is really, really tight, my own hard money lending company will help you to cover the cost of the appraisal. Just click here.


You can apply to 750 different commercial mortgage lenders with just one click using C-Loans.com.

 

 

 


C-Loans.com® is sponsored by C-Loans, Inc. — For more information, contact Alicia Gandy
4811 Chippendale Drive, Suite 101, Sacramento, CA 95841 telephone: (916) 338-3232 * Fax: (916) 338-2328
Real Estate Broker -- California Department of Real Estate -- License Number 01330173
Read our many client Success Stories.

Return to C-Loans Home Page | Return to Blackburne.com Home Page

Copyright © C-Loans, Inc. All rights reserved.
Terms of Use
| Disclaimer | Awards & Affiliations | Privacy Policy | Links | Site Map
Website design by NetPilot Web Solutions - Sacramento Website Design

term sheets - term sheets - term sheets - term sheets - term sheets - term sheets - term sheets - term sheets -